How to Fix Set Up Local Taxes in QuickBooks Online Payroll? (2025 Guide)

 For help with Set Up Local Taxes in QuickBooks Online Payroll Phone Number, reach out to our support team anytime at 1*855*389*9729 or (855)*389*9729. We're available 24/7 to assist with installation.

Local taxes might not be the flashiest part of running a business—but they’re definitely one of the most important. If your company is based in one of several states that require them, you’ll need to set up local payroll taxes for your employees. These go beyond regular state withholding and may include city, county, municipality, or even school district taxes.

Let’s walk through the steps together. If anything feels confusing, don’t stress—you can always call 855-389-9729 for help.

First Things First: What Local Taxes Do You Actually Need?

To make sure your tax setup is spot-on, grab the full home and work addresses of your employees. Those locations determine which local taxes apply. If you're not sure what local tax types you're dealing with, you can:

• Reach out to your local tax office

• Use some handy tools we’ve listed below

Tools and Resources by State

States with local taxes include: AL, CO, DE, IN, KY, MD, MI, MO, NY, OH, OR, PA, WV
Use the USPS Address & ZIP Code Lookup to confirm city and ZIP code combinations. The “Cities by ZIP” tool is especially helpful.

Indiana – Local taxes are based on where an employee lived and worked on January 1 of the current year.
→ Have employees complete Form WH-4.

Maryland – Local taxes are included automatically when you set up state withholding. Nothing extra to do!

Ohio – Use the Ohio Local Tax Finder. You’ll need the full 9-digit ZIP code (including the 4-digit extension) for both home and work locations.
→ Not sure about the extension? Try the USPS Address Tool.

Heads up: School district taxes with a 0.00% rate won’t show up during setup.

Oregon

• Eugene Community Safety Payroll Tax

• Lane Transit District Tax (LTD)

• Multnomah Preschool for All

• Portland Metro Supportive Housing Tax

• TriMet Payroll Tax

Pennsylvania
→ You’ll need to collect a residency certification form from each employee.
→ Look up your PSD (Political Subdivision) Code by address.
→ Don’t forget to set up Local Services Tax (LST) if required.

Add Local Tax Info to Each Employee’s Profile

Here’s how to assign your team members to the right local tax zones:

1. Go to Payroll > Employees

2. Select the employee

3. Click Edit next to Tax Withholding

4. Under Local Taxes, choose the applicable ones

5. If it’s not showing up, hit Edit Location and enter the city/ZIP combo

6. In PA, you may need to manually add the PSD code

7. Click Save

Updating or Adding PSD Codes for PA Work Locations

In the Employee’s Profile:

• Go to Payroll → Employees → Employment Details

• Hit Edit next to Work Location

• Save your changes, and you’ll be prompted to enter a PSD code

• Pick from the list or type in the 6-digit code

• Hit Save

In Payroll Settings:

• Click the Settings ⚙️ icon → Payroll Settings

• Go to Work Location, hit Edit, then Save

• You’ll be asked to enter or select the PSD code

• Done!

Note: If a paycheck has already been issued, you can’t edit that work location’s PSD code. You’ll need to create a new location with the correct PSD and reassign employees.

Add Your Local Tax Account Info & Payment Schedule

Once all the local tax jurisdictions are added, you’ll need to plug in:

• Your local tax account number

• How often you’re supposed to make payments (weekly, monthly, etc.)

If you’re missing this info, your local tax agency can help—or call us directly at 855-389-9729.

If You've Already Run Payroll:

• Go to Settings ⚙️ → Payroll Settings

• Choose the state → then Local Taxes

• Enter your account number and how often you pay

• Hit Save

If You’re Brand New to QuickBooks Online Payroll:

• Head to Payroll → Overview

• Click Let’s Go under "Set up your local taxes"

• Hit Edit ✎

• Enter your account number and deposit frequency

• Click Save

If you’re using QuickBooks Online Payroll Premium or Elite without e-services (or the Core version), you can still pull a payroll report to see your local tax obligations.

Set Up Local Taxes in QuickBooks Online Payroll ❞. please feel free to contact our support team at 1.855-389-9729 or 1.855*389*9729. We can assist with installation, setup, and troubleshooting.

Need Help?

For assistance with Set Up Local Taxes in QuickBooks Online Payroll ❞, please feel free to contact our support team at 1.855-389-9729 or 1.855*389*9729. We can assist with installation, setup, and troubleshooting.