More research -- is it because the Assign Tax Fields for W-2s under the Payroll settings wizard only has one entry for Local income tax and I need at least 3 entries on the screen to be able to pick Local, School, and Local 2?

At the point when you set up your government form, you should report the entirety of the assessable pay you have gotten during the expense year.

I'm not quite sure what you mean.   My issue from four years ago seems to be better, but it isn't showing the right amount in taxable wages.  The data in the Aatrix window where I'm verifying numbers has the same value in Taxable wages as it does for tax withheld (the correct value).  If I click in wages box for an employee I get a popup "Edit Locality Detail records".  It states: The total that is displayed in the Preparer is calculated from the detail records.  To change the amount in the Preparer, you must change the detail records.  Then the table has a summary for each month (I pay the person weekly).   Looks like I'll have to add a row of data to get the numbers right.

As of 29 Dec 20 (with all updates) still doesn't work or I'm missing something in my user maintain payroll formulas.  When I start the w-2/w-3 process, only the State withholding and Fairborn City tax show up (image cropped to hide full account numbers).  I manually add the other three and when the Aatrix software launches the three I've added are empty.  They have their own account numbers and other tax Sage tax reports show the values.  What am I missing.

Sorry the image doesn't work

I don't think you are missing anything.  After all this time, we should be able to pull in all the information correctly.  I'm also still manually adding mine.  Then the W-3 is screwed up on the local portion.  When I add in the school district manually, it doubles it on the W-3.  I assume because it is then pulling from the local and the school district that I manually entered.  I don't know how many times I started over just trying to get the W-3 to have the correct amounts.  I should have been done an hour ago

Interesting -- I first posted this issue 8 years ago and I still don't have an easy solution.  It's only become easier because people have moved so I have fewer localities to deal with.  Still seeing Local Wages matching Local Taxes withheld and have to manually update Local Wages.  Still don't have the option to have two local taxes (I withhold for one city because it's where the employees work and then 0.25% more because of where they live).  All my formulas work, I just can't figure out how to have two local taxes fill in correctly.

Mine finally look like they all pulled correctly for the first time ever. I just did a quick test mode, so who knows how they will be pulled into Aatrix.  I have one set up as a local tax under RITA and the other set up as School District.  I know this doesn't help you.  So you're withholding for city because of where they work and like the residence portion for where they live??  We don't withhold any residence tax

So yours is showing the correct Local Wages for RITA?  Employees have to pay workplace tax for where we're located (Fairborn OH) of 2% and then three of five of them live in a community which has a 2.25% tax for residents.  They get a credit for the 2% to Fairborn, and then have to pay the 0.25%.  So I collect both for them.  The Fairborn tax is set up under user maintained as Tax, Tax Agency: Locality; All Localities? No; Locality Name Fairborn and then I flag those employees in their Withholding Info tab as Fairborn, for Local tax.  Sage/Aatrix only lets me have one locality, so in the user maintained tax I say it's Tax; Tax Agency: Locality; All Localities? Yes (no Locality Name shows up).  Then I add that User maintained tax formula to the appropriate people.

I'm curious about your settings that Local Wages worked.  

Last year (2022) taxes were the worst.  4 employees, one who moved and changed school districts and local taxes.

I'm also worried about how more and more I have to do electronic filing when I'm not sure Aatrix has things right.  E.g. I have to correct the W-4 for Local wages.  I'm showing the wages for each locality and Aatrix adds them together and essentially doubles the number.  Sorry for the rambling.  I spent Friday triple checking things and it's fresh on my mind.