馃攳
US Payroll |Setting Up Pennsylvania Local Taxes - YouTube
Channel: unknown
[2]
[Music]
[4]
hello my name is mike in this video
[6]
tutorial series on pennsylvania local
[8]
taxes we'll look at setting up new work
[10]
locations configuring trus or psus to
[13]
withhold for residents working outside
[15]
of pennsylvania the pennsylvania
[16]
maryland reciprocity agreement and
[18]
verifying and correcting the psd code
[20]
for new workers
[21]
before beginning to work with
[22]
pennsylvania local taxes you must run
[24]
the load payroll tax information for u.s
[27]
process this process allows the
[29]
political subdivision or psd codes to
[31]
become available for use in the
[32]
application
[34]
when using the location task to set up a
[36]
new work location it's important to
[38]
enter the correct psd code associated
[40]
with the location's taxation
[41]
jurisdiction leave this field blank for
[43]
non-pennsylvania locations and for
[45]
locations with philadelphia taxation
[47]
philadelphia is not part of pa act 32.
[50]
you'll also want to leave the
[51]
non-resident eit rate field blank as
[54]
this field is not currently used once
[56]
you've entered a psd code for a work
[57]
location all new hires who are assigned
[60]
to that location will have that psd code
[62]
automatically populated on their
[64]
employee pa residency certificate record
[67]
if you want to withhold local taxes for
[69]
pennsylvania residents who work outside
[70]
of pennsylvania as a courtesy you'll
[72]
need to configure your psu or tru
[75]
calculation cards configurations at
[77]
lower levels override configurations at
[79]
higher levels for the state income tax
[81]
calculation component on the enterable
[83]
calculation values on the calculation
[85]
cards tab you'll need to manually add
[87]
the calculate pa resident tax for non-pa
[89]
work location calculation value with a
[92]
value of yes
[94]
if you're registered as a combined filer
[96]
for pa act 32 you'll need to configure
[98]
your tax collection district proxy on
[101]
the psu or tru calculation cards
[103]
configurations at lower levels override
[105]
configurations at higher levels this
[107]
designation should not be changed
[109]
mid-year confirm that your tax filing
[111]
vendor supports this filing before
[113]
configuring for the state income tax
[115]
calculation component on the enterable
[117]
calculation values on calculation cards
[119]
tab you'll need to manually add the tcd
[122]
combined filing proxy calculation value
[124]
with a designated proxy value this
[126]
example shows a proxy value of 67 for
[129]
york tax collection district once set
[131]
the payroll process populates this value
[134]
in run results for the tax collection
[136]
district code on the city tax elements
[138]
and local wages and taxes elements if
[140]
you're not a combined filer no
[142]
configuration is required the payroll
[144]
process populates the tax collection
[146]
district code in run results according
[148]
to pa act 32 requirements
[151]
it's important to keep in mind the
[152]
reciprocity agreement for local taxation
[154]
between pennsylvania and maryland these
[156]
four pennsylvania tax collection
[158]
districts or tcds allow an exemption
[160]
from non-resident attacks from maryland
[162]
residents there can be exceptions refer
[164]
to the vertex calculation guide for the
[166]
list of local tax districts within these
[168]
four tcd codes that allow an exemption
[171]
when an employee lives in maryland and
[173]
works in pennsylvania the payroll
[175]
process will not withhold pennsylvania
[177]
local taxes where appropriate as long as
[180]
you've entered
[181]
88000 for the home psd code in the
[184]
pennsylvania residency certificate
[185]
section on the employee tax card the
[187]
employee has the correct work psd code
[190]
that pertains to one of these four tax
[192]
collection districts in the pennsylvania
[193]
residency certificate section of the
[195]
employee tax card
[197]
you've entered a value of yes for the
[199]
pennsylvania non-resident flag on the
[201]
employee tax card
[205]
when an employee works in maryland and
[207]
lives in pennsylvania the payroll
[208]
calculation will appropriately withhold
[210]
maryland local taxes unless the employee
[213]
lives in york or adams counties or lives
[215]
in a local pennsylvania jurisdiction
[217]
that doesn't impose earnings or income
[219]
tax on maryland residents pennsylvania
[221]
residents aren't subject to maryland
[223]
state taxes consider the following
[225]
you've optionally configured your psu or
[228]
tru to withhold pennsylvania local taxes
[230]
for employees working outside of
[232]
pennsylvania
[233]
you've correctly set up the employee's
[235]
withholding certificate in the residency
[237]
certificate section of the tax card
[240]
you've marked the person as non-resident
[242]
from maryland on their maryland regional
[244]
tax card
[247]
after you hire an employee you'll want
[249]
to make sure the employee's residency
[251]
certificate has the correct psd code and
[253]
school district populated for both the
[255]
resident and work fields the system will
[257]
automatically populate the psd code and
[259]
school district for the resident fields
[261]
based on the home address city but that
[263]
information may not be accurate because
[265]
pennsylvania addresses often have
[267]
varying taxation jurisdictions the
[269]
system will also automatically populate
[271]
the psd code and school district for the
[273]
work fields based on the information you
[275]
entered when setting up your work
[276]
location you'll need to update or
[278]
correct this information accordingly
[281]
to verify the correct psd code go to the
[283]
pennsylvania municipal statistics
[285]
website and click the taxes link to find
[287]
local withholding by address
[289]
once you're sure the resident psd code
[291]
and school district are correct the
[293]
payroll process will withhold the higher
[295]
of the resident rate city plus school or
[297]
the non-resident rate city only in cases
[300]
where the rate is the same the system
[302]
will automatically withhold the resident
[304]
tax this concludes the setting up
[306]
pennsylvania local taxes tutorial be
[308]
sure to watch maintaining pennsylvania
[310]
local taxes where we'll look at entering
[312]
a psd code using employee self-service
[315]
performing ongoing maintenance and
[316]
viewing run results to confirm accurate
[318]
withholding thanks for watching
[323]
[Music]
[330]
you
Most Recent Videos:
You can go back to the homepage right here: Homepage