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Beth104
Level 1

I have Emp who lives/works in Louisville, KY. Why is QBO not withholding for the City tax W1? I have the option selected but nothing is being withheld.

This is the only employee I have in KY. The state withholding (K1 is being withheld and paid automatically. The Employer withholding for Metro Louisville/School Board doesn't appear to be working as nothing has been recorded as an expense. This should be reflected on their pay stubs as well. The Payroll Tax section shows this report is ready to be filed so something isn't working correctly.

1 Comment 1
Bryan_M
QuickBooks Team

I have Emp who lives/works in Louisville, KY. Why is QBO not withholding for the City tax W1? I have the option selected but nothing is being withheld.

Thanks for bringing this to our attention! I'll share information about this @Beth104.

 

You can review two things to see why your employee from Kentucky doesn't show state withholding on their paystub.

 

First off, you'll need to see your employee's federal and state withholding forms.  These are the information you'll need to review there since the tax calculation depends on these things: 

 

  • How much your employee is paid
  • How often your employee is paid
  • Marital status
  • Number of dependents
  • Other sources of income

 

Lastly, check your employee's tax setup in your payroll product. Ensure the filing status and all other applicable fields match their W-4 or state equivalent form.

 

If the filing is set as Exempt or Do not withhold, it won't be deducted and show in the paystub. Yet, you can change it to the appropriate one.

 

Suppose you want to find details on your tax forms via your state's agency. Consider visiting this article: Access state agency websites for payroll.

 

If you're interested in faster direct deposits for your employees and monitoring them while on work via GPS tracking, you can Explore QuickBooks Payroll.

 

Feel free to return if you have additional questions.

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