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faithelectricaloffice
Level 1

I need help setting up local county and city payroll tax withholding. My employees work at different addresses sometimes in the county and sometimes in the city.

The way I have it set up now, it only takes out city taxes.
I don't understand how it determines when they are in the county and when they are in the city jurisdiction.
Solved
Best answer December 05, 2023

Best Answers
CamelleT
QuickBooks Team

I need help setting up local county and city payroll tax withholding. My employees work at different addresses sometimes in the county and sometimes in the city.

I'll guide you on how we can set up and manage payroll for your employees who work at a different location every day, faith.

 

QuickBooks doesn't have a direct way of handling payroll for a roaming employee since having multiple state unemployment and local withholding on a single paycheck or tax filings may cause issues with state tax forms. For now, I suggest sending feedback about this. Here's how:

 

  1.  At the upper right corner, click the Gear icon.
  2. Under the Profile, select Feedback.
  3. Enter your comments or product suggestions and hit Next to submit feedback.

Moreover, I can share a workaround on how you can track and run payroll for these types of employees. Refer to the list below:

 

  1. Record the rendered hours in each city/country/state within a pay period.
  2.  Before running payroll for a specific employee, edit the work location.
  3. Make sure to update the tax withholding for the specific state. 
    tax withholding.PNG
  4. Go to Payroll settings, click the pencil icon beside the state name, and edit the tax rates. 
    payroll settings pencil icon.PNG
    edit state tax info.PNG
  5. After updating all the necessary details, Submit payroll.
  6. After submitting, run another payroll and change the work location again. Proceed with updating the tax withholding and state tax rates. 

 

Please check out this link to help you create, manage, assign and update your pay period: Set up and manage payroll schedules.

 

Comment below if you have additional questions about managing your payroll set up, and I'll circle back to assist you. Take care!

View solution in original post

6 Comments 6
Kurt_M
QuickBooks Team

I need help setting up local county and city payroll tax withholding. My employees work at different addresses sometimes in the county and sometimes in the city.

It's a pleasure to have you here today, @faithelectricaloffice. We'll help you get through this and have your employee set their specific address inside the program.

 

In QuickBooks Online (QBO) Payroll, It's possible to have employees work in more than one state for the same employer. It could be an employee who works in multiple states within the same pay period. Your employee may be subject to different state unemployment and local tax withholdings depending on which state(s) they work in and if they're a resident or non-resident of those states. We'll input the steps below to help you modify their current address:

 

  1. Go to Payroll, then select Employees.
  2. Select your employee.
  3. From Employment details, select Start or Edit.
  4. From the Work location dropdown, you'll see a default work location (usually your company's address). Select an existing address, or +Add work location.
  5. If you selected add work location, enter the physical address where your employee works and select the correct address from the list. Don't use a P.O. Box. The physical address help us determine the correct taxes.
  6. When finished, select Save.

 

We recommend checking this page for more information: Set up and manage work locations in QuickBooks Online Payroll.

 

Moreover, you can visit these handy articles to help you manage pay schedules, and prepare to wrap up this year's payroll in QBO:

 

 

@faithelectricaloffice, we'll be happy to have you here again in case you have any additional questions or tasks you'd like to perform inside QuickBooks. Keep safe.

faithelectricaloffice
Level 1

I need help setting up local county and city payroll tax withholding. My employees work at different addresses sometimes in the county and sometimes in the city.

I understand setting their work location, but they work at a different location every day.

 

 

CamelleT
QuickBooks Team

I need help setting up local county and city payroll tax withholding. My employees work at different addresses sometimes in the county and sometimes in the city.

I'll guide you on how we can set up and manage payroll for your employees who work at a different location every day, faith.

 

QuickBooks doesn't have a direct way of handling payroll for a roaming employee since having multiple state unemployment and local withholding on a single paycheck or tax filings may cause issues with state tax forms. For now, I suggest sending feedback about this. Here's how:

 

  1.  At the upper right corner, click the Gear icon.
  2. Under the Profile, select Feedback.
  3. Enter your comments or product suggestions and hit Next to submit feedback.

Moreover, I can share a workaround on how you can track and run payroll for these types of employees. Refer to the list below:

 

  1. Record the rendered hours in each city/country/state within a pay period.
  2.  Before running payroll for a specific employee, edit the work location.
  3. Make sure to update the tax withholding for the specific state. 
    tax withholding.PNG
  4. Go to Payroll settings, click the pencil icon beside the state name, and edit the tax rates. 
    payroll settings pencil icon.PNG
    edit state tax info.PNG
  5. After updating all the necessary details, Submit payroll.
  6. After submitting, run another payroll and change the work location again. Proceed with updating the tax withholding and state tax rates. 

 

Please check out this link to help you create, manage, assign and update your pay period: Set up and manage payroll schedules.

 

Comment below if you have additional questions about managing your payroll set up, and I'll circle back to assist you. Take care!

Maximum Homecare
Level 1

I need help setting up local county and city payroll tax withholding. My employees work at different addresses sometimes in the county and sometimes in the city.

I need help setting up city payroll tax withholding. My employees worked at different locations within a pay period but all in the same state. How can I set up the payroll item to be taxed by the city? And only the city that relates to that payroll item.  Example - (payroll item) Regular - Smith and is only subject to City of Cinti tax, no other payroll item is in the City of Cinti (like salary).  I am using QB Enhanced payroll desktop

MelroseV
QuickBooks Team

I need help setting up local county and city payroll tax withholding. My employees work at different addresses sometimes in the county and sometimes in the city.

Thank you for joining this thread, @Maximum Homecare.

 

Currently, our payroll products don't support roaming employees. Since you're using QuickBooks Desktop, you can use location tracking to track your employees in 2 locations and file the taxes manually as a workaround. 

 

First, we need to set up your preferences to track payroll expenses by class. Here's how:

  1. Go to Edit, then Preferences.
  2. Select Accounting then Company Preferences.
  3. Select Use class tracking for transactions.
  4. If prompted, select Yes to save changes.
  5. Select Payroll & Employees.
  6. Make sure that Full Payroll is selected in the QuickBooks Payroll Features section.
  7. Select Job Costing, Class, and Item tracking for paycheck expenses.
  8. Select how you’d like to assign a class.
  • Entire paycheck if you want to assign one class to an entire paycheck. 
  • Earnings item if you want to assign a different class to each earning item on the paycheck

     9. Select OK.

 

Next, we can add a class to your paychecks or employee profile. 

 

When you generate and process payroll, you must access your employees' paycheck information. If you choose to assign one class per earnings item in preferences, you should then allocate a class to each earning item.

 

If you choose to assign one class to an Entire paycheck:

  1. Go to Employees, then select Employee Center.
  2. Double-click the employee's name.
  3. Select Payroll Info.
  4. From the Class drop-down, click the class name you'd like to assign to the entire paycheck.
  5. When you create and run payroll, a class should show on your employees' paychecks.

 

Afterward, you can manually file their taxes. You can check this article for more details: Pay and file payroll taxes and forms manually in QuickBooks Desktop Payroll.

 

Additionally, you can check this article to help you create, manage, assign, and update your pay period: Set up and manage payroll schedules.

 

Keep in touch if you have other questions besides your taxes. I'll be around to assist further. Stay safe!

DCD60
Level 1

I need help setting up local county and city payroll tax withholding. My employees work at different addresses sometimes in the county and sometimes in the city.

This does not fix the issue. I cannot set a work location for an individual when they work multiple job sites in a day. We have project Superintendents, these guys visit 1-5 jobs per day, some are within city boundaries and others are not. I cannot tax their wages for work performed outside of the city limit. 

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