Yes. ezPaycheck payroll software allow user to 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.

Copy link below for more details on how to add a customized field by fixed amount and withhold it from each check automatically.
https://www.halfpricesof...ayroll-sdi-deduction.asp 

Copy link below for more details on how to add a customized field by percent and withhold it from each check automatically.
https://www.halfpricesof...aq-payroll-deduction.asp 

User enters local tax manually each time user generates a new payroll check.

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My state/city has local tax. Can ezPaycheck payroll software handle it?