The current version of QuickBooks can create many miscellaneous state and
local taxes as other tax payroll items using information in the tax table. The
tax table contains the rates and annual wage limits for most of these taxes. Go
State and Local Payroll Taxes Web site to view a list
of these taxes and information about them.
QuickBooks automatically adds any missing "other tax" payroll items for your
state when you start to pay employees, review the tax setup in the Employee
Defaults window, add a new employee, or change the state, in the employee record, where the employee works.
In a previous version of QuickBooks, you may have used deductions or company
contributions to track miscellaneous state or local taxes. If a payroll item
had the "Is a Local Tax" checkbox selected, it was converted to a
user-defined other tax payroll item when you updated your company data. If the
"Is a Local Tax" checkbox was not selected, the payroll item is still
a deduction or company contribution.
If QuickBooks has already created another tax payroll item based on the tax
table, you now have two payroll items for the same tax. You should
merge the old payroll item with the new payroll
item. QuickBooks may ask you to review your employee setup if a merged tax
contains fields that need to be filled in.
Note: You cannot merge the new payroll item (set up from the tax
table) into the old payroll item (deduction, company contribution, or
user-defined other tax). You must merge the old one into the new one, so that
only the new one remains.
If the tax is a local tax that QuickBooks doesn't set up from the tax
table, from now on use a user-defined other tax payroll item for it. If the tax
is still a deduction or company contribution on your Payroll Item list:
First create a user-defined
"other tax" payroll item for the tax and use a slightly different name.
Then merge the old payroll item with the
new payroll item.
Important note about wage bases
for the current year to date