setting up school district tax payroll item

Hi kend2,

I'm happy to share some information about the local tax.

We're unable to change the Other type. It's already taken as an Ohio tax based on the work location of the employee. If you need to set it as a local income tax or a secondary local income tax, I'd suggest creating your own local tax item instead. It's best if you can verify the tax tracking type with your tax agency.

1. On the Taxes window, click the down arrow in the Item Name field of the first line.
2. Choose <Add New>.
3. Select whether the employee or the company will pay the tax and click Next.
4. Enter the tax name. Ex. OH - School District Tax and click Next.
5. Enter the details of the tax agency and click Next.
6. In the Tax tracking type drop list, choose whether it's a Local Income Tax or a Secondary Local Tax.
7. Click Next and select from the options on how the tax is calculated.
8. Click Next and and enter a Default rate and limit.
9. Click Next, and click Finish.

If you have questions, you can always go back to this thread.

Thank you for your response.  In previous years, I have entered the taxes as a "user defined" local income tax as you have suggested.  When I completed the Ohio IT-3 form this year, I had to fill in the OHIO school district taxes paid manually.  I assume if they were classified as OH-School District taxes, the form would have been filled in automatically. 

It is curious that it selected "Clyde" as the default school district.  The address of the business and the work place has been in Fremont for several years.  (It was previously located in Clyde.)

On a related note, could you explain the difference between "Local Income Tax" and "secondary Local Tax" ?  Thank you again for your help.

So I have employees living in 2 separate school districts with different percentages of withholding.  QB desktop only allows one school district payroll item to be set up and I have to delineate a single percentage.  Do a set up the second as a local tax?  Will it report correctly on a W-2 since its a local and not a state?  when I try to delete the school district tax from the employee and adding it as a local, QB advises me not to do it.  Where to I go from here?

Hey there, @Amy7402. Thanks for joining the thread.

I'm here to help out with your question. You are correct in that QuickBooks Desktop only allows one school district. We pull this information from government tax tables. In order to best assist, I'd like to get some additional information. Assuming the employee's must have two school districts deducted, I'd like to know how the employee's have been set up. Are you trying to withhold for both the employer district and the employee home location district? If that's the case, I'd double-check with your local agencies to make sure you need to withhold both. We strive to keep the tax tables up-to-date, and we'd like to hear the outcome.

Just reply back with the additional information and we'll get you back up and running in no time! For more information on local taxes in QuickBooks Desktop, check out create or set up local taxes.

Please let me know if there's anything else I can do to be of assistance. Wishing you and your business continued success in all that you do.

I think what is going on is similar to my issue. She has one employee in one school district and another employee in a different school district. For some reason, Quickbooks Desktop has the school district tax under a STATE tax in Ohio. Ohio has multiple school districts all with different rates. I believe everyone is doing a work around by creating each school district as a local tax, which I believe is the best solution. However for me, most of my employees do not reside in a school district that is taxed. It is extremely annoying that the desktop version keeps adding the school district tax because it is set up as a STATE tax. How do we fix this so that the school district tax is regarded as a local tax? Which it should be in Ohio?

Thanks

When you set up your employee under Ohio, our program will automatically add the OH-School District item, Czieman. Let me help you get around it.

You can delete the OH-School District item, then create a User-Defined Tax. You use this tax type if any other local or city taxes are not automatically entered.

First, let's delete the school district item. Here's how:

1. Click Employees, then go to Employee Center.
2. Select the employee.
3. Go to the Payroll Info tab, then click Taxes.
4. Go to the Other tab.
5. Select OH - School District, then click Delete. 

On the same tab, let's create a User-Defined Tax. Here's how:

1. Click any line under Item Name, click the drop-down arrow, then select Add New.
2. Select User-Defined tax, click Tax is paid by the employee, then click Next. 
3. Enter a desired name, then click Next. 
4. Select the liability account, then click Next. 
5. Select the tax tracking type, then click Next.
6. Select either Calculate this item based on quantity, Calculate this item based on hours, or Neither, then click Next.
7. Enter a rate and limit, then click Next. 
8. Click Next, then Finish. 

Let me share this reference on how to set up payroll items for new state taxes.

If you need more help with your payroll setup, you can tap me. 

I have deleted that OH-school district tax at least 4 times and it just keeps coming back!!

Hello there, @czieman.

Let me share some steps to delete the OH-school district tax item in the employee's profile. 

QuickBooks automatically adds any missing "Other Tax" payroll items for your state when you add a new employee, review the tax setup in the Employee Defaults window, or change in the employee record.

To delete the payroll item, you need to confirm the change by selecting the Yes or No button in the pop-up window. In your case, you need to select No to remove the item. 

If you get the same result, let's run some troubleshooting steps to fix possible data issues. To start, update the QuickBooks to the latest release. Sometimes downloading and installing the latest updates fix minor issues within the program or file. 

After that, run the Verify and Rebuild tools. This process can locate the issue and to correct the errors. You can follow the steps in this article: Resolve Data Damage on your Company File.

For more information, I've attached some articles you can use as your guide for 2019 year-end: 

• Year-end checklist for QuickBooks Desktop Payroll

• QuickBooks Desktop Year-end Checklist

Please know that I'm only a post away if you have any other questions. Have a great day ahead. 

Did you find a solution to this? THis is our first year using and I need to add it manually as well. Odd that its calculated in the tax end- but it doesnt transfer over to the IT3

Thanks for joining the Community, ChristiJo.
 

kend2 selected IamjuViel's post as the solution to their original inquiry about setting up school district payroll items.
 

As mentioned in the solved answer, you can work with an accounting professional or contact your local tax agency to be guided accurately with tax-related inquiries. If you're in need of an accountant, there's an awesome tool on our website called Find an Accountant. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.
 

Here's how it works:

1. Go to our Find an Accountant page.
2. In the Find an expert in section, choose what you're looking for, then use your search field to enter a City or ZIP code.
   
3. Select Search.
   
4. Browse through the results and find one that works best for your business. You can click on each ProAdvisor's profile to learn more information about them.
   

Once you've found an accountant, they can be contacted through their Send a message form:

1. Use the available text box to introduce yourself. Be sure to include details about which services you're looking for.
   
2. Enter your appropriate info in the Your name, Your email, and Your phone number (optional) fields.
   
3. Hit Send message.
   

You'll also be able to find many detailed resources about using QuickBooks in our help article archives.
 

Please feel welcome to send a reply if there's any additional questions. Have a lovely day!

I do not have an "edit location" option on the tax withholding section. 

Hello there, @pbales. Thank you for reaching out to us regarding the Edit Location option. I'm dedicated to helping you and providing all the relevant guidance and information you need.

Please know that this thread is specifically for QuickBooks Desktop users, and all the information provided above is intended for this specific product. The Edit Location option is available in QuickBooks Online. If you're using this, here's how to locate it.

1. Go to the Payroll menu, then Employees.
2. Select your employee.
3. From Tax withholding, select Edit.
4. In the Local Taxes section, pick the applicable local taxes.
5. If you don't see the expected local taxes, pick Edit location.
6. Type in the city and ZIP code combination for the local tax jurisdiction you require. If you are in PA, you can input the specific PSD code.
7. Hit Save.|
    

For additional details, refer to this article: Set up local taxes in QuickBooks Online Payroll.

If you're using QuickBooks Desktop, you can edit the location on your employee's profile. I'll show you how.

1. Hover to the Employees menu. Click Employee Center.
2. Double-click your preferred employee. Head to the Payroll Info section.
3. Press Taxes, then go to the State tab.
4. Set your preferred location in the State Worked and State Subject to Withholding sections.
    

I still recommend consulting your accountant for further guidance and advice.

If you're referring to something else, I kindly request you provide a screenshot for further clarification.

For additional guidance on managing payroll and employees, you can refer to these resources:

• Set up, change, or delete employee-paid payroll deductions.
• Edit, delete, or void employee paychecks.
• Customize payroll and employee reports. 

Please feel free to reach out if you need further clarification. Our team is committed to ensuring that we address all your inquiries accurately and promptly.