Louisville Metro (KY) Occupational Tax & Personal Use of Company Cars — Anyone Else Seeing This in QBO Payroll?

Hi @MLom. Thank you for sharing detailed information about your experience with your local tax issue, which is incorrectly reflected in your Form W-2. I’m here to provide some clarity and guidance.

The information in boxes 18 and 19 of the W-2 Form is determined by how your local tax is set up in QBO. For Louisville Metro Occupational License Fees/Taxes, it’s important to select the correct tax component based on your residential and work location.

Here’s how:

1. Go to All apps.
2. Select Payroll, then choose Employees.
3. Click on the name of the employee whose W-2 Form reflects incorrect information.
4. Scroll down and click the Edit icon in the Tax withholdings section.
   
5. Navigate to the Local Tax section and select the appropriate tax option for Louisville Metro.
   
6. Once completed, click Save.

After making these updates, I recommend reaching out to the QBO Payroll live support team. They can assist you in correcting the withheld amounts reflected on your W-2 Form.

Let me know if you have additional questions by leaving a reply below. We'll assist you promptly.

Hello Bryan,

I truly appreciate the time and attention you have given to this matter.

I would like to clarify a few points to ensure we are fully aligned on the issue:

1. Local payroll tax setup
   The Louisville local taxes are correctly configured in the system. There is no issue with the underlying tax setup.
2. Pay types included in local tax calculations
   Regular wages, bonus payments, and S-Corp Owner Health Insurance are all being correctly included in the calculation of the Louisville local tax. These items are working as expected.

The Personal Use of Company Car (PUCC) additional pay type is also displaying correctly on paychecks, payroll reports, and Form W-2. However, the issue is that PUCC is not being included in the calculation of the Louisville local withholding. As a result, weekly paychecks and payroll reports are missing the Louisville withholding related specifically to the PUCC amount.

1. Impact on Form W-2
   The incorrect Form W-2 at year-end is only part of the overall concern. The primary issue is the ongoing under-withholding during payroll runs due to PUCC not being factored into the Louisville local tax calculation.

Thank you again for your response and for your proactive approach in working to resolve the Form W-2 aspect of this issue. Your support and attention to detail are greatly appreciated.

Hi there, MLom.

Thank you for providing detailed information about your concern. The insights you’ve shared will help us create a tailored solution to meet your specific needs.

Since you’ve already confirmed that your employee’s local payroll taxes are correctly set up and the pay types are included in local tax calculations, we recommend contacting QuickBooks Live Support for further assistance. They have the tools necessary to ensure Louisville's local taxes are properly configured and calculated.

Here's how:

1. Go to the Help menu in QuickBooks Online.
2. Select Search and open any article.
3. Click Contact Us.
4. Describe your concern and select Continue.
5. Choose either Chat with us or Have us call you.

For more details about support availability, refer to this article: Get help with QuickBooks products and services.

If you need any further clarification, please don’t hesitate to reach out to us.