The error states local withholding cannot be more than half of your local wages, please verify and I did verify and this is what it states on the W-2 it wont let me file!

If your W-2 really shows a local tax amount that is greater than the amount in wages for that locality, you will indeed have to file by paper.

I'm having the same problem.  The W-2 shows local withholding but no local wages.  I know the withholding must have been calculated off something, but the wages box is empty.  My employer won't help--they say the W-2 is correct.  What gives?