Thank you for reaching out to the Community. We can only have one withholding for local city taxes in QuickBooks. The local taxes are based on the employee's work and home locations set up in the system. QuickBooks Online automatically calculates the applicable local taxes based on the employee's location and withholds the appropriate amount from each paycheck.
To set up your employee's local tax:
Go to Payroll, then Employees.
Select your employee.
From Tax withholding, select Edit.
In the Local Taxes section, select the applicable local taxes.
If you don't see the expected local taxes, select Edit location. Enter the city and ZIP code combination for the local tax jurisdiction you need. If you're in PA, you can enter the specific PSD code.
We'll be happy to have you here again if you have additional questions or tasks you'd like to perform inside QuickBooks. Keep safe, and have a great day!
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