QuickBooks now has a payroll item type called Other Tax, which you can use
to track your local taxes as well as miscellaneous state taxes. QuickBooks
automatically creates some of these other taxes, such as California Employee
In previous versions of QuickBooks, you probably used deductions and company
contributions to track your local taxes, which QuickBooks now displays in the Other
Tax list. In order for QuickBooks Assisted Payroll to pay and report these taxes
accurately, you must merge the payroll items that you previously used with the
new item created by QuickBooks.
Important: Merging payroll items is irreversible. If you are unsure
about merging payroll items while using Assisted Payroll,
contact QuickBooks Assisted Payroll.
Setting up local taxes