We have a City tax for employees who work within city limits. We use the Locale option to calculate this. It was recently discovered that if employees live in another state, the Locale does not allow the individual's state tax to calculate. We have several reciprocal states, which means that state tax is paid to each individual's home state, not the state in which they work. The result has been that employees have had no state tax calculated on their payroll for several months.

The Locale needs to not be tied to a certain state, or at very least not cancel out another state tax from calculating.

Has anyone else dealt with this issue?  Is there a work around?  I can't just have the calculation for the work state go through - employees would end up paying estimated taxes to the home state plus calculated taxes to the work state.