Nonprofit Accounting Basics

Local Employment Taxes & Registration

Note: Articles published before January 1, 2017 may be out of date. We are in the process of updating this content.

In many areas, local governments at the county or township level may have an income tax in addition to the state withholding tax. The amounts of these local taxes vary widely from state to state. Many states do no have any local withholding taxes.

When registering your organization in a state where you will be withholding taxes, it is a good idea to inquire about local taxes. In most states, local income tax requirements are posted on their website in the revenue and/or taxes area.

Please refer to the section within Payroll Taxes for Links to State Withholding Agencies.