Step 1: In order to create, update or delete local taxes, navigate to Periodic Processing  > Local Tax Rate / Limit Update.

• The Local Tax Update window will open:

Step 2: Action

• To add a local tax code, select Add.
• To update a local tax code, select Modify.
• To delete a local tax code, select Delete.

Step 3: Type

• Select the Local Tax type

Step 4: State Abbreviation

• Enter the state abbreviation for the state.

Step 5: Payroll Code

• Select the Payroll Code you would like to use to process this local tax code
• Note: If you selected Yes during the Assisted Setup to create local tax codes, your system will be set up with 4 local tax payroll codes by default
• LOCAL TAX RES – Local Tax Resident Locality
• LOCAL TAX SD – Local School District
• LOCAL TAX WK – Local Work Locality
• LOCAL BRACKET – Local Bracket
• You can select to tie your local tax into whichever “category” it is by using the default system local tax payroll codes or create your own

Step 6: Local Tax Code

• Enter the Local Tax Code you would like to use to identify your local tax
• Note: If you are using the Integrity Data Tax Filing Service, this local tax code must be a specific tax code which should be verified by contacting Integrity Data Client Services

Step 7: Local Tax Description

• Enter a Local Tax Description

Step 8: W2 Locality Code

• This correlates to box 20 on the W2 form
• Note: If you are using the Integrity Data Tax Filing Service and your local tax code identifies a locality within the state of Pennsylvania, the W2 Locality Code must be the Political Subdivision Code for that locality in order to ensure accurate tax reporting.

Step 9: Year

• Enter the tax year for the local tax code

Step 10: Local Tax Type

• Locality – This will identify the local tax code as a work locality
• School District – This will identify the local tax code as a school district

Step 11: Tax Percent

• Enter the tax percent for the local tax.

Step 12: Earnings Lower Limit

Step 13: Earnings Upper Limit

Step 14: Employee Withholding

• Mark as Yes if this is an employee withholding

Step 15: Employer Tax

• Mark as Yes is this is an employer tax

Step 16: State Withholding Allowances Apply

Step 17: Calculated on State Tax

Step 18: Resident Tax

• This will identify the local tax code as a resident locality