Employee's Ohio School District withholding off by $0.31 each paycheck
I have two employees who are subject to Ohio School District withholding. The tax rate for both school districts is 1.25%, and we also have a SIMPLE IRA. For the first employee, the school district tax is calculated correctly (Gross Pay - Simple IRA) x 1.25% = SD Tax withheld. For the second employee, the tax is calculated incorrectly, and is less than what it should be by $0.31 each pay period, regardless of the gross pay. Is there some reason that this same, fixed amount is being subtracted from this employee's Ohio School District tax withholding each pay period?
Re: Employee's Ohio School District withholding off by $0.31 each paycheck
Thanks for the help! The second employee had 1 allowance for Ohio. When I changed this to zero, the school district withholding was correct! Now, I'm not sure why QuickBooks is set up this way, since in Ohio, school district income tax isn't dependent on the number of allowances. But for now I'm just glad that it is calculating school district income tax correctly with zero allowances entered.