Payroll Mate supports user defined tax categories. In a few simple steps you can custom add local tax categories to accommodate a city tax. Local tax categories can be directed to the W-2 form when the tax is created.
For further assistance click the link below:
http://www.payrolltutorials.com/video/payroll-mate-create-new-custom-tax/
Payroll Mate generates many different types of payroll tax reports. I suggest becoming familiar with them to determine which report best fits your needs. A comprehensive report that breaks each tax down into separate fields is the taxes and deductions report as well as the employee earnings total report.