This in house small business payroll software does not automatically calculate local taxes. It only calculates federal taxes and certain state taxes. To add local taxes you would have to manually add a tax category.
To add a tax category follow these instructions:
Select "Company" located on the navigation pane.
Select "Tax Categories"
Select "Add".
Enter the "Tax Details".
Select "OK" when you are finished.
Select "Employees" from the navigation pane.
Select the Employee to whom the tax category applies.
Select "Edit" from the employees toolbar.
Select "Next" four times until you reach the "Taxes" page.
Place a check into the box of the new Tax Category.
Select "Next" until you reach the finish page.
Select "Finish".
Congratulations you have successfully created a new Tax Category!