Setup a Philadelphia Resident Local tax.

1. Go to Setup, Taxes, Tax Rates.
2. Enter PHILAR as the Tax ID, add Philadelphia Resident as the description.
3. Tax level is Local, Tax type is Resident, and Table type is No Table.
4. Complete the setup of this tax, including the percentage for this tax.

Setup a Philadelphia Non Resident Local Tax.

1. Go to Setup, Taxes, Tax Rates.
2. Enter PHILAN as the Tax ID, add Philadelphia Non Resident as the description.
3. Tax level is Local, Tax type is Non-resident, and Table type is No Table.
4. Complete the setup of this tax, including the percentage for this tax.

In order for a tax to calculate, it must be part of a Tax Group.

Setup two tax groups.

1. Both Tax groups will be Local tax groups.
2. One tax group for PHILAR Philadelphia Resident.
3. Add the PHILAR local tax to this tax group.
4. One tax group for PHILAN Philadelphia Non-Resident. 
5. Add the PHILAN local tax to this tax group.

The PHILAN tax group will be placed on your Job setup in Job Cost, under the Scope and PR tab, Local field.

The PHILAR tax group will be placed on the Employee setup on the Entry Info tab, Resident Local field.

You will use a Reciprocity Agreement so that your Philadelphia Resident employees will not also pay the Non-Resident Philadelphia local tax when working on a Philadelphia job.

1. Go to Setup, Taxes, Reciprocity.
2. Select the Tax level of Local.
3. In the Resident Local field, choose PHILAR.
4. In the Work place field, choose PHILAN.
5. In the Tax ID column, choose PHILAN.
6. Leave the Reciprocal Tax ID field blank.
7. Click Accept Table.
8. Click Close.

It will be necessary to link these taxes to the Aatrix Tax Reports for W2 reporting. Use the Attached KB to link the local taxes.