If the employee setup lists a local tax group for residence, work, or both, and a local is also listed on the assigned job:

• The software will find the highest rate, calculate, and then pay that amount to the job local.

If the employee setup lists a local tax group for residence and work, but no local is listed on the job (or a job was not assigned):

• The software will find the highest rate, calculate, and then pay that amount to the work local.

 NOTE: The examples listed above are assuming the "Use employee work state/local" box is unchecked in the employee setup. If you have the box checked, please refer to article 21198 "How are the Work State and Work Local retrieved during time entry in Payroll?" for more information.