How does the payroll process calculate Pennsylvania local Earned Income Tax?

When you run the payroll process for local Earned Income Tax (EIT):

1. It compares the person's Resident Income Tax Rate (city + school) and Nonresident Income Tax Rate (city).

2. It uses the higher rate for calculating local taxes.

3. In cases where the total rate is the same, the payroll process withholds the resident tax.