How do I fix the auto sales tax so that it is not putting 4% to "NewYork State"? NYS wants the 4% credited to the county when being reported not broken out the way QBO is

Hi Jax518,

Thank you for reaching out in the QBO Community. Let me help you with your sales tax.

Yes, you can create a custom tax rate in QBO. This custom rate can be applied to some or all customers, allowing you to allocate the 4% sales tax to the appropriate county as required by NYS. This way, you can ensure that the tax is reported in the manner requested by New York State. 

Here's an article for your additional reference: Use custom rates to manually calculate taxes on invoices or receipts in QuickBooks Online.

If you have other questions in mind, free free to go back to this thread.

Hi @Jax518, in addition to what @JessT mentioned above, I would highlight that while using custom rates, it's essential to review the Sales Tax Liability report provided by QBO periodically. Based on my experience, the amount reflected in this report (at the state/county/city level) often differs from the amount the state agency would expect to be remitted to them as part of the sales tax return. 

In general, you could do a self-filing of taxes based on the report provided by QBO or use an online sales tax filing service like Galvix, which will auto-reconcile the amount of taxes you collected on each invoice, comparing them with the expected tax for each customer address (as per the state/county/city level tax rules) and prepare draft returns for you every month. Once you approve the draft return, Galvix will go ahead and file the return on your behalf for each state, initiate the remittance and upload a confirmation/acknowledgement to your account for future reference. This would save time for you, while also improving the accuracy of the filed returns (and thereby saving you from future hassle).