Thank you very much for your kindness reply!!

The bottom line is the PA/NJ reciprocal agreement only subjects State wage tax (box 16) not Local wage Tax (box 18). May be it is the reason for the ProSeries software was not flowing through the the local tax (box 19) as a credit for income or wage taxes paid to other jurisdiction. 

It is very confusing. I thought only non-residents conduct businesses pay for local or city tax annually, the employer responsible for local or city tax for employee who is a non-resident lives at other jurisdiction, 

Thanks again!!

Rachel