Thank you for contacting us about ezPaycheck payroll software. Here are the answers to your questions:

1. State tax
ezPaycheck will calculate state income tax automatically based on your employee address. (Not company address)

2. Local tax
You can view this guide to learn more details. You can decide which option works better for you.
http://www.halfpricesoft...aq-payroll-local-tax.asp 

If you still have questions, please give us more details. (ie: how to withhold CA SDI or others). We are glad to assist you as soon as possible.

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I am trying your Trial Version of Ezpayroll.

I haven't found out how to set up State and Local Withholding taxes and their reports.

Can you please help me.

I am extremely happy with the program so far.

Thank you