Overview

This article explains how to change an employee's local taxes.

Details

Note: If you have Assisted Payroll, you will need assistance from an Intuit customer service representative to change your employee's local taxes. Contact us.

To change an employee's local taxes:

  1. Go to Employees menu > Employee Center.
  2. Double-click the name of the employee.
  3. Click the Payroll Info tab.
  4. Click Taxes.
  5. If the employee is exempt from standard taxes, click the Federal tab and click to clear Enforce Standard Taxation before clearing or adding any taxes.
  6. For federal taxes, click to select or clear the appropriate box in the Subject to section.
  7. For state taxes, click the State tab.
  8. Click the appropriate box for State Unemployment Insurance (SUI) or State Disability Insurance (SDI), or click the State Worked or State Lived drop-down arrow and select the correct state.
  9. For local taxes, click the Other tab. If you want to delete a tax item, highlight the item and press the Delete key.
  10. Press the Tab key on your keyboard until the cursor is on the first blank line in the Item Name section.
  11. If you want to add an item, click the drop-down arrow and select the appropriate local tax from the list.Note: If QuickBooks Desktop does not match the local tax for the employee with the state worked or state lived in, a warning message appears after you click OK.
  12. Some local taxes may require you to enter a tax rate. If you do not know the rate, contact your local government agency.
  13. Click OK > OK.

Note: If you are adding and removing assessment tax items that are part of state unemployment tax, see the article Change state taxes for an employee.