Setup a new Local Payroll tax.

• Workplace—The local tax applies to all employees who work in this local area. Regardless of where they live.

• Resident—The local tax applies only to employees who live in this local tax area. An employee is considered a resident if the tax group ID entered using Employees in the Residence Local item matches the tax group in which this tax is included.

• Non-resident—The local tax applies only to employees who work in this local tax area, but live outside the tax area. An employee is considered a non-resident if the tax group ID entered using Employees in the Residence Local item does not match the tax group in which this tax is included.

Comparison—Appears when you select Local as the Tax level. Select Comparison when setting up local taxes for Pennsylvania. When you also select the Compare rates? check box, and enter Resident and Non-resident rates, the system will use the higher of the rates between the Tax ID associated with the employee's residence tax and the Tax ID associated with the workplace tax to determine which tax will calculate. If one comparison tax must always override the other tax, even if it has the lower rate, select Comparison but do not select the Compare rates? check box (for example, Philadelphia tax). For detailed information on the Comparison tax setup requirements and calculation, please refer to the “Setting up local taxes for Pennsylvania” Help Topic.

NOTE: The Tax Level, Tax Type and Table Type options are available for Employee and Employer taxes.

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.