Hi there, @missmissySEI.
I’m here to address your questions and walk you through reverting the employee's paycheck and elucidate the use of the payroll setup button in QuickBooks Desktop (QBDT).
Since you created the paycheck before adding the new city, this explains why the city you created from where the taxes should be taken out is not reflected in the employee’s paychecks. In this, we can revert it and recreate another with the correct details:
- Go to Employees, then select Pay Employees
- Select Scheduled Payroll or Unscheduled Payroll.
- Select Resume Scheduled Payroll. You’ll see some employees’ names highlighted in yellow. These are the employees that have had changes.
- Right-click on the employee name that’s highlighted in yellow.
- Select Revert Paychecks.
Once done, you can refer to this article in creating and running your payroll with the correct information: Create and run your payroll.
Concerning the second question you have, the Payroll Setup button under the Employees tab is used to manually do payroll. This functionality helps us track your payroll transaction within the application and usually use by business owners who don’t subscribe to any payroll services. Using this option will need you to manually calculate and enter your payroll taxes, and file your tax forms yourself.
You can also read this article for more details: Set up manual payroll without a subscription in QuickBooks Desktop.
Let me know if you have more questions about managing payroll and employees’ paychecks. The Community always has your back. Have a good one!