Employees → Taxes → Local tab

Local governments can impose a Local Income Tax on people who live or work in a specific area. These agencies can be by state, county, municipality, or school district. These taxes can fund general public services or specific legislative measures/actions. This is additional to the federal and state income taxes. Only localities in states with state income tax impose a local income tax. Taxes levied by cities and towns are also referred to as municipal taxes.

💡 Local Income Tax and Local Withholding are two terms that can be used interchangeably.

States that do not have any applicable local payroll taxes will include the statement, "No city income tax for current residence." Review the Residence and Work locations for applicable taxes to populate, and contact your local government to verify if you might have local income taxes in your region. 

General view of the Local Income Tax tab.

State with Local Taxes

Employees → Taxes → Local tab

Ohio and Pennsylvania are great examples of states with Local Income Tax. Be sure to verify your employee’s resident location (home address) for the proper local income taxes to apply.

The Resident Location field auto-populates based on the employee’s zip code entered for their address. Do not edit this field unless previously discussed with your Payroll Support Team. This team can also provide you with guides assisting you in verifying the residency.

Local Taxes: Tax Overrides

Employees → Taxes → Local tab

Just like Federal and State Income Tax, the Local Income Tax also has overrides available. Reach out to your Payroll Support Team to discuss Local Income Tax overrides.

(Continue in Other Income Tax Information)