If applicable for your payroll, the following steps will ensure proper deduction of City Taxes for employees:
1. Click "Utilities" on the main menu bar, then highlight "Withholding Rates" and click "Local Tax Settings"
2. Type the City name in the box under "Type Name of Tax Locality"
3. Click the down arrow for "Select Locality Tax Base" and select the appropriate base.
4. Then click the "Save" button.
The appropriate percent should be entered as a decimal number in each employee's record in the box to right of the description "Local Tax Rate as a Decimal Number ->" .
The City tax percentage can be found for your state on the website