Hi there, michelle-indoorw.
Local taxes are calculated and tracked in QuickBooks Online (QBO) based on your setup. We'll have to review the employee's tax settings to determine why no amount was deducted from the employees' paychecks. Let me help ensure the process is a breeze for you.
Here's how:
- Go to the Payroll menu on the left panel and choose Employees.
- From the list, select the employee you're working on and click on it to view more information.
- Navigate to the Tax Withholding section of the Profile tab and click the Edit button to open the What Are (the employee's name) Withholdings screen.
- Select the local taxes that the employee is subject to in the Local taxes section, and make sure to check the box for the county.
- Click the Save button for the changes to take effect.
Here's an article that goes into detail about how the payroll service handles local taxes: Set up local taxes in QuickBooks Online Payroll. From there, you'll learn about paying and filing your taxes.
For tools to aid you in performing your payroll tasks and resources to complete them on time, click here to again access our self-help articles.
Fill me in if you have other payroll concerns or additional questions about QuickBooks. I'm always ready to respond to them. Have a good one.