Thanks for reaching out to us, @rmtires. I'm here to share information about updating the local tax rate in QuickBooks Online (QBO).
Yes, you're right. As long as you've entered your EIN in your QBO payroll settings, rest assured that the system will automatically update the tax rate. Here' show:
- Go to the Gear icon and select Payroll Settings.
- Go to the [State] Tax section and click the pencil icon.
- Enter your EIN in the Withholding field.
- Click Save, then Done.
Since the tax amount is deducted incorrectly from your employees' paychecks, you'll need to run the Payroll Summary report to identify the wage and tax discrepancies. Then, reach out to our customer support team to correct the paychecks. Here's an article for the detailed process: Handle overwithheld or underwithheld employee-paid taxes.
Additionally, I'll share this article for your guide in paying and filing your local tax withholding in QBO: Pay and file your local taxes in QuickBooks Online Payroll.
Keep in touch if you have further questions about local taxes. I'm always available in the Community to continue assisting you. Stay safe.
