I'm here to help check if the local tax is set up in QuickBooks Online (QBO), herstinertf.
You'll need to verify the employee address and work location are correct. Local taxes will automatically be added based on those entries.
Once verified, here's how to set up local taxes:
Select Payroll from the left navigation bar.
Choose Employees and click the employee's name.
Under the Employee details, click the pencil icon beside Pay.
On the question about employee's withholding, select edit(pencil) icon.
Go to Local Taxes and mark the local tax jurisdiction.
There are 12 states that collect local tax withholding in QBO. Feel free to read through the Local tax setup and support: Main hub link to find your state and see instructions on how to ensure the system will withhold the tax.