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Yes, ezPaycheck payroll software  is very flexible and can handle local tax in two ways:

1) You can enter local tax manually each time when you generate a new payroll check.

2) ezPaycheck allows user to add customized deduction item. You can add a local tax item by fixed amount or by percent, and withhold it from each paycheck automatically.

You can learn more details here
http://www.halfpricesoft.com/faq-payroll-local-tax.asp 
Casey
Please feel free to contact us directly  if you need assistance
Small Business Payroll & Tax Software Solution
https://www.halfpricesoft.com 
Posted: 2014-02-13T21:27:34Z
My city has the local tax. Can ezPaycheck payroll software handle it? Thanks.
Posted: 2014-02-11T18:52:52Z