Re: QB Online can't handle New York City Resident tax. When we set it up they built it in but ded...
Welcome and thanks for reaching out to us in the Community, @scott24.
I'm here to help fix the issue you're having with the New York City Resident tax in QuickBooks Online (QBO).
I tried on my end, and I wasn't able to get the same result as yours. We also haven't received any reports similar to this. Since you've already verified the setup on your employee's profile, try to delete and recreate the paychecks to double-check.
If the issue persists, I highly suggest reaching out to our Payroll Support team. They have tools such as screen-sharing (remote access) that can check your account and further investigate.
Here's how to reach them:
1. On your QBO account, click the Help (question mark icon) at the top. 2. Select Contact Us at the bottom to connect with our Payroll Support team.