PA Act 32 Out of State Employer

We do not work in PA but have PA resident employees who work in DC, MD and VA.  We are not required to withhold PA School and Local Taxes but are requried to report wages of employees that live in PA.  How do I set up the Tax and the Employees to record the Pay and update the F06166B but not withhold the Tax?

We tried using *N and *M with the Vertax Geo Code for the PA Local Tax but the system withholds the tax and then gives us a Gross to Net error.

Any help would be appreciated.