I have 1 employee whose state (KY) taxes were not calculating at all (they were up until 2 months ago). I manually entered a transaction and found that no State was defaulting in the Payroll Trx Entry window. I went to Cards>>Payroll>>Tax, selected the employee and found that in the Transaction Entry Defaults section, Indiana was selected as the Tax Withholding State (this was not, however, defaulting onto the transactions). I changed that Kentucky. In that same section, they have a Local Tax Code selected as well, which had been defaulting on the Payroll Trx Entry window; I did not change this. I created a new payroll transaction, and now KY is defaulting in for the State on each line I entered. However, the Local Tax Code is no longer populating. What am I missing? Is there some relationship between the "Tax Withholding State" field and "Local Tax Code" field?
Thank you.
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