You will setup two local taxes, and then place them in one Local Tax Group.

Step I: Setup the Resident Local tax

1. Select Setup, Taxes, then Tax Rates.
2. Enter your Tax ID and Description. For example, BEAV as the Tax ID. Beaverton Resident as the Tax Description.
3. Tax Level is Local, Tax Type is Resident. In this example, Table type is No table.
4. If this is employee paid, do not select the Employer tax or Company rates check boxes. If this is an Employer paid tax select the Employer tax check box. If you are sharing your tax.prx with another Data folder and each Data folder has a different rate, select the Company rates check box and enter the specific rate in each Data folder.
5. Enter your Liability account, your Printed Description, the Percent and a Limit if there is a limit for this tax.
6. Select Save, then Close.

Step II: Setup the Non-resident Local tax

1. Select Setup, Taxes, then Tax Rates.
2. Enter your Tax ID and Description. For example, BEAVWORK as the Tax ID. Beaverton Work as the Tax Description.
3. Tax Level is Local, Tax Type is Non-resident. In this example, Table type is No table.
4. If this is employee paid, do not select the Employer tax or Company rates check boxes. If this is an Employer paid tax select the Employer tax check box. If you are sharing your tax.prx with another Data folder and each Data folder has a different rate, select the Company rates check box and enter the specific rate in each Data folder.
5. Enter your Liability account, your Printed Description, the Percent and a Limit if there is a limit for this tax.
6. Select Save, then Close.

Step III: Setup the Local Tax Group

1. Select Setup, Taxes, then Tax Groups.
2. Select the Tax level as Local.
3. Enter a Tax Group ID and Description. For example BEAV as the Local Tax Group ID, and Beaverton as the Local Tax Group Description.
4. Enter your Withholding EIN and/or Secondary Employer ID.
5. Using the List Button select the Resident and Non Resident Tax rates you just setup. BEAV and BEAVWORK in this case.
6. Select Accept, then Close.

Step IV: Add the Local Tax group to your Employees who reside in that Local

1. Select Setup, then Employees.
2. Select the Entry Info tab.
3. On the Residence Local field select your new Local tax Group by selecting List. BEAV in this example.
4. Select Save, then Close.

Add the Local Tax group to the workplace:

1. For employees who are not job costed however work in this local, add this local to the Work Local on the Entry Info tab in Setup, Employees.
2. For employees who are job costed, add this new Local to the Job in Job Cost. Go to Setup, Jobs. Select the Scope and PR tab. In the Local field, use the List button to add this local. BEAV in this example.

Note: If the employee resides in this local, the Non resident tax will not calculate. If the employee does not reside in the local, the non resident tax will calculate. It is important to have the Local Tax Group on the Resident local on the employee setup for this to calculate correctly.

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