Processing
Human Resources
When an employee record is updated, the user must enter the PSD code. For new employees, if there is a valid Current Local code in the PSD table, it defaults to the Current Local field. Existing employees show a message with the local tax code. The local tax code can then be selected for the employee. The default local tax code does not have to be used.
When an employee moves, update the employee record with the changed values. A pop-up message displays to enter the prior earnings data now. You may also enter prior earnings data at a later time.
Choosing the Prior Earnings button allows you to load the current Residence code, Current Local code, year-to-date taxable local gross, and year-to-date tax withheld into a record in the new Prior Earnings table. This option is used for moves between localities as well as moves between states. If an employee moves multiple times, multiple records are created.
Report Processing
The Local Tax report is to be run prior to the payroll run, which clears the month-to-date or quarter-to-date tax amounts, depending on when your site files local income tax.
The following are the format names used to create data files for electronic transfers.
BERKHEIMER: As provided by Berkheimer Tax Administrator is a comma-delimited file.
CENTRE: As provided by State College Area, SD is a flat file with records being 512 bytes in length.
JORDAN: As provided by Jordan Tax Service is a flat file with records being 512 bytes in length.
KEYSTONE: As provided by West Chester Area SD is a comma-delimited file.
CUMBERLAND COUNTY: As provided by Wissahickon SD, a comma-delimited file is created, which is sent after converting it to an Excel spreadsheet.
BERKS: As provided by Berks Intermediate Unit, a comma-delimited file is created, which is sent after converting it to an Excel spreadsheet.
CENTAX: As provided by Rose Tree Media, SD is a comma-delimited file.
PHILADELPHIA: As provided by Norristown Area SD, a comma-delimited file is created, which is sent after converting it to an Excel spreadsheet.
YORK ADAMS: As provided by Dallastown Area SD, a comma-delimited file is created, which is sent after converting it to an Excel spreadsheet.
CAPITAL: As provided by Capital Tax Collection Bureau, is a flat file with records being 512 bytes in length.
LANCASTER: As provided by Lancaster County Tax Collection Bureau, is a flat file with records being 512 bytes in length.
An electronic file is created for each file format listed above. A detailed readable file has also been created listing data included in the electronic file.
W2 Processing
If an employee moves during the reporting period, they will have multiple PSD codes. For each PSD code an employee has or had, one employee record is produced according to the file format selected.
There are no additional setup requirements for W2 processing to draw the prior state/local tax from the new tables used by the PA Act 32. If the project is activated, the W2 process automatically uses the new tables when loading the W2 work file.
In addition to extracting the prior state and local taxes from the PA Act 32 tables, it also replaces the locality name with the PSD code (unless the PSD code is not known). Also, an error message has been added to the load report identifying any employees with total local wages greater than Medicare gross. Check the employee's prior earnings and taxes screen for accuracy. The employee's local wages can be reviewed and corrected if necessary.
Once the W2 work file has been loaded, W2 processing and printing have not changed.