- In Manage Employees, check the Salary Information tab. Make sure the box, ‘Calculate Local Tax’ is checked. Also, make sure the Resident box is checked.
- In addition to marking the Local Tax box, you also must make sure the word in the ‘Local’ box matches the one in Payroll Preferences.
- Finally, make sure the local tax rates are entered.
- If you have multiple Local tax rates, click on the [Define Rates] on the right side of the above screen (not shown here). It will give you a place to define rates for several local municipalities. Make sure the spelling for the local place matches the one you have in the Salary Information tab of the Manage Employee record.