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?


Thanks,

Kristen, Guardian Home Inspection

Answer

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: http://munstatspa.dced.state.pa.us/FindLocalTax.aspx. 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: https://community.intuit.com/articles/1762853.

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

Was this answer helpful? Yes No
Original
IntuitMaryL , Community Support Specialist
Employee SuperUser

No answers have been posted

More Actions

People come to QuickBooks Learn & Support for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach:

Qb community
Looking for advice from other business owners?

Visit our QuickBooks Community site.