Workplace - City of Pittsburgh local tax error

Our main workplace is in the city of Pittsburgh.  Pittsburgh is one of only two municipalities in PA that require employers to deduct local taxes for employees who live within the city limits.  However, most of our employees do not live in the city.  Therefore, I would expect that the system would look at the employee's home address and not assign the Pittsburgh tax payroll items for employees with addresses outside of the city.  I do choose their correct local municipality and school district on the jurisdiction tab, but the system seems to ignore it.  Every employee we add that