I'm about to process my first online payroll (previous desktop user). How do I deduct payroll tips already received? The pay employees section doesn't ask for that amount

Thank you! 
Does it matter that QB has my county incorrect in the system before I run my first Payroll? 

We need to make sure that your payroll is properly set up, pazza-bella.

This is to make sure that the calculation of your taxes is correct. You can follow these steps in updating it:

1. Go to Workers tab and select Employees.
2. Select the employee and select Edit employee.
3. Click the edit (pencil) icon for the withholdings. From the Local taxes section, select which is the appropriate county.
4. Hit the edit (pencil) icon if you want to manually update it. Enter the correct city, county  and Zip code. Click OK, then Done to save it.

The tax calculation is based on where the employees work and live. Also, please be guided that some states have reciprocity agreement. This is the basis when calculating the employee taxes if they work to another state. You can read this guide to learn more: About multistate employment payroll situations.

Also, here are the guides in setting up payroll in QuickBooks Online:

• Set up payroll

• Set up and assign a new work location

• Add or edit an employee in Online Payroll

Please comment again if you need more assistance. I'll be here!

Under the State and local tax section, it does not give me an option to change my business’ county nor the employees county of residence. 

I'll help you correct the payroll details, pazza-bella. 

You can only remove or add certain taxes in the State and local tax section. Instead, go to the Profile section where you can edit the employee's personal address.

Here's how:

1. Exit out of the employee's tax setup.
2. Click the Pencil icon beside Profile.
3. Change the employee's address, then click Done.

You can also follow these steps to change your business' county:

1. Click the Gear icon and select Payroll Settings.
2. Proceed to the Tax Setup tab.
3. Click Local Tax Jurisdiction and click on the local tax.
4. Click Edit and update the address or county. 
5. Click OK.

In addition, you'll also want to run payroll-related reports after creating paychecks. This will let you easily review the tax amounts of the recent payroll that you've processed. Here's an article for more details: Run payroll reports.

Visit us again if you have other concerns. The QuickBooks Team and other members of the forum are always here to help you anytime of the day. 

The issue is the business address. Not the employees