TurboTax does not know about every possible local tax you might have to pay. TT only helps to prepare a few city or local tax returns. For the most part that employer was correct. If you live in a town or locality with a local tax it is up to you to stay on top of it and make sure you pay your local tax.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
