Employee's Ohio School District withholding off by $0.31 each paycheck

accountgineer · ‎January 28, 2019

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?

Anonymous · ‎January 28, 2019

Hello, accountgineer.

Aside from the gross pay, the employee’s allowances that were entered in QuickBooks can also affect the calculation.

To check:

Go to Employee Center.
Open affected employee’s profile.
Select Payroll Info from the left panel.
Click The Taxes tab and go to State tab.
Then check the allowances.

You can compare the first and second employee’s settings.

In case you’ll want to perform adjustments, you can refer to this article the detailed steps: https://community.intuit.com/articles/1762814-adjust-payroll-liabilities.

Don't hesitate to keep in touch if there's anything you need.

View solution in original post

Anonymous · ‎January 28, 2019

Hello, accountgineer.

Aside from the gross pay, the employee’s allowances that were entered in QuickBooks can also affect the calculation.

To check:

Go to Employee Center.
Open affected employee’s profile.
Select Payroll Info from the left panel.
Click The Taxes tab and go to State tab.
Then check the allowances.

You can compare the first and second employee’s settings.

In case you’ll want to perform adjustments, you can refer to this article the detailed steps: https://community.intuit.com/articles/1762814-adjust-payroll-liabilities.

Don't hesitate to keep in touch if there's anything you need.

accountgineer · ‎February 11, 2019

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.

KhimG · ‎February 11, 2019

Hello there, @accountgineer.

I'm glad you were able to resolve the issue about your employee's Ohio School District Withholding.

If you need anything else, please let us know. The Community is here to help. Thanks for dropping by and take care!

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Employee's Ohio School District withholding off by $0.31 each paycheck