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Level 1

Local payroll tax rates in Pennaylvania

After entering my employees addresses, quickbooks online fills in the earned income tax and local services tax rates. The rates are incorrect according to the Pennsylvania municipal statistics web page.  I called quickbooks online support and they were unable to correct the rates.Has anyone else had this problem?  Thank you.

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Best answer November 28, 2018

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QuickBooks Team

Local payroll tax rates in Pennaylvania

Hi there, @jb10.

 

I appreciate you reaching out here in the Community and calling our phone support.

 

Once you're subscribed with our payroll products, we make sure that the rates and taxes are in accordance with your states. The option to update the Pennsylvania (local payroll tax rate) is available with our phone support team tools.

 

For security reasons, you may need to call again for them to update the information for you.

 

Keep me posted on how the call goes or if there's anything else you need. Have a good one.

 

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QuickBooks Team

Local payroll tax rates in Pennaylvania

Hi there, @jb10.

 

I appreciate you reaching out here in the Community and calling our phone support.

 

Once you're subscribed with our payroll products, we make sure that the rates and taxes are in accordance with your states. The option to update the Pennsylvania (local payroll tax rate) is available with our phone support team tools.

 

For security reasons, you may need to call again for them to update the information for you.

 

Keep me posted on how the call goes or if there's anything else you need. Have a good one.

 

View solution in original post

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Level 1

Local payroll tax rates in Pennaylvania

I am in the Erie area. Quickbooks has totally screwed up our local taxes.  I spent hours on Friday with IOP. I have sent them the information from the taxing authority. Quickbooks does not seem to be able to grasp that there can be different rates for the same PSD code depending on whether you work in that PSD code or live in that PSD code. 

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QuickBooks Team

Local payroll tax rates in Pennaylvania

Hello there, @ssullivan1.

 

Allow me to chime in and furnish you with additional information on how setting up the Political Subdivision (PSD) Code works in QuickBooks.

 

Ensure to enter your employee's home address and work location is set up accurately. Also, make sure to select two boxes in the Local taxes section, each option denotes different rates for the same PSD code.

 

To set employees' PA local tax, here's how:

  1. Go to the Employees tab.
  2. Choose the employee's name.
  3. Click Edit in the Taxes and Exemptions section.
  4. Go to the Local Tax section.
  5. Checked the Local Taxes Based on Work Site and Residence applicable to your employees.
    • To determine the rate applicable to every employee and the corresponding 6-digit Political Subdivision (PSD) Code for where they work and live, employers must use the DCED Official Tax Register.
    • You can go to http://munstats.pa.gov/Public/FindLocalTax.aspx to verify your employee's home and work address. r6.gif

       

  6. Click Ok

That should do it! This will allow you to set your employee's PA local tax accurately.

 

For additional insights, you may check out this article: Pennsylvania Act 32 Local Withholding Requirements.

 

Always feel free to leave a post below if you have other questions about managing your employee's local tax information. I'm always here to help.

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Level 1

Local payroll tax rates in Pennaylvania

That does not do it. The rates are incorrect for instance in our locality "PA - Erie City,Erie County" there are 2 different rates. I have been trying to explain this to you folks since the beginning of the year!! If an employee lives in Erie, PA (that is the city limits, not the mailing address) their tax rate is 1.15% unless the municipality where they work has a higher tax rate. If an employee works in Erie, PA (that is the city limits, not the mailing address) but lives in another municipality, their tax rate is .68%. Currently, Quickbooks is overwithholding on all employees that work in the city but live in another municipality. This is a known issue has been escalated. The community needs to be aware when they prepare their first quarter local tax reports that if they take the information straight from Quickbooks it will be wrong.

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Moderator

Local payroll tax rates in Pennaylvania

Hi ssullivan1,

 

Allow me to jump into this conversation and add a few details about your concern with PSD code.

 

Intuit Online Payroll (IOP) calculates rates based on the Political Subdivision (PSD) Code entered on the employee's address and work location using the Pennsylvania (PA) Municipal Statistics. Our Payroll Compliance Team works with tax authorities to keep tax rates accurate.

 

As a reference, you can check out this article for more information: Local tax setup and support: Pennsylvania.

 

I know you've called in before. However, this requires gathering personal information which we can't in the Community for your security. I recommend working with one of our payroll specialists to view updates on your previous call's case number and perform a screen-share session.

  1. Sign in your IOP account.
  2. Click on Contact us.
  3. Choose either Call us or Chat with us.

That should do it. Keep me posted how it goes after contacting them. I'll be around to help. 

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Level 1

Local payroll tax rates in Pennaylvania

Have you found a solution to this problem?  We have the same experience where some rates aren't available, Quickbooks Support did not have any suggestions.  

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QuickBooks Team

Local payroll tax rates in Pennaylvania

I'd be pleased to help you out with this, @laurabreighner.


The local taxes is based on the work site and residence that you set for your employee. You can check this by going to your employee's profile, on the question about employee's withholding.


Check the following steps:

  1. Go to your employee’s profile and click edit (pencil) icon beside Pay.
  2. On the question about employee's withholding, hit the edit (pencil) icon.
  3. Go to Local Taxes and select the local tax jurisdiction.
  4. Select Done.

To further check the missing rates from your account, I suggest reaching back to our Payroll Support team. I know that you’ve contacted them before.


However, they’re the only one that can further troubleshoot this error since they have the needed tools to check your account in a safe and secure environment.


You can do this by arranging a callback from them. Check this out:

  1. First, go to the Help icon to connect to a live support agent.
  2. Click on Contact Us button to provide some details about this concern.
  3. After adding some insight, tick on the Let's talk button.
  4. Lastly, select the Get a callback button to arrange a call from them.

Let me know if there’s anything else that I can help with your account by leaving a comment below. Take care and have a great rest of the day!

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