Adding local school district tax

One of the currently employees isn't getting taxed for the local school district she lives in in western PA.  Intuit has listed a few school districts for me to pick from, but none of them are the district she lives in.  In western PA, employees have to have local tax and school tax taken out of her pay.  There is not button to click for me to manually add her district. Is this something that intuit can make an option and I can manually add her district so she is properly taxed?


Kristen, Guardian Home Inspection


Hello there, jason.boni,

QuickBooks Desktop may create standard payroll items for local taxes. You can use the steps below to create a new local tax item. Here's how:

  1. Click Lists, then Payroll Item List. Click Payroll Item, then New at the bottom left.
  2. Select Custom Setup, and click Next. Then, select Other Tax and click Next.
  3. Click the drop-down and select the tax from the list.  If the tax is not in the list, choose User-Defined and select Tax is to be paid by the employee. Click Next.
  4. Enter the name of the tax item, and click Next.
  5. Enter the name of the tax agency and the tax ID number. Select the Liability Account and click Next.
  6. Select the Tax Tracking Type (check with your tax advisor if you do not know which to choose), and click Next.
  7. Select Calculate this item based on quantity or Calculate this item based on hours if applicable, and click Next.
  8. Enter Default Rate or Limit, and click Next.
  9. If a tax might affect the wages for this local tax and you want to change the current settings, make the change and click Next.
  10. If a payroll item might reduce the wages for this local tax, check the payroll item from the list and click Finish​​.
To apply tax to the employee:
  1. Click Employees, then Employee Center. Double-click the employee's name.
  2. Click the Payroll Info tab.
  3. Click Taxes, and then click the Other tab.
  4. Click the Item Name column, and select the local tax.
  5. Enter the rate and limit, and click OK.

You can also use this PA Find Local Tax: Just enter the employee's home and work location addresses and click View Information. The report will display the local taxes and the associated rates.

Check this article if you need to change an employee's local taxes:

Let me know if you need additional help in setting this one up.

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IntuitMaryL , Community Support Specialist
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