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 below:
If a second local tax withholding is required (for example: school district withholding tax), the first Miscellaneous deduction can be used. Select “Utilities” on the Main Menu bar, and click “Review Installed Settings”. Change the First Deduction Title from LifeI to Local2. When you finish entering “Local2”, a box titled “Locality Name” will appear on the right. Enter a 6 digit name for the tax locality (for example: enter SD1904 for school district 1904). Click the “Save Changes” button. Select “Employee Records” on the Main Menu bar, and click “Employee Changes”. Enter the tax rate as a decimal number to the right of the Local2 deduction for each employee and save the changes. The deduction will show as Local2 on the employee check stub, and will show the name of the Locality (example: SD1904) on line 2 in box 20 on the Form W-2.