Before you create W-2 files, ensure that the correct W-2 descriptions are specified for the
tax authorities you process W-2s for. The HR Payroll uses the W-2
description you define for the tax authority on the W-2 files.
When you print W-2s that have local taxes, the description that prints can be taken from the
Payment Description field of the deduction code or the W-2
Description field from the tax authority. If you have multiple local deductions
tied to one tax authority, you can choose to print the payment description from the deduction
code. The individual payment description prints instead of the shared tax authority W-2
description. The description that prints depends on the parameters selected on the Local W-2
Description parameter of the Generate W-2 File action.
When you create W-2 files that have Pennsylvania local taxes, the description that prints can
be taken from the
W-2 Description field of the tax authority for the
local authority or from the W-2 description found in the Pennsylvania state tax authority.
This is referenced based on the legal entity in the employee's quarterly deduction file for
each local tax withheld. Use this option if the same W-2 description applies to multiple local
taxes and is identifiable by legal entity. For this option, you must select the
Pennsylvania Local Combined By W-2 Description check box located at . Additionally, W-2 Reporting combines by W-2 description the local tax amounts
for reporting in Box 18, 19 and 20 (taxable wages are not doubled as the city tax is used for
taxable if both city and school district taxes exist).
Note: This option is used if your company structure
represents your work locations and the tax collection districts (TCD) where taxes were filed
during the year. If you filed all taxes to one TCD, then specify the TCD's two-digit code in
the Pennsylvania Tax Collection District W-2 Description for the legal entity on the tab.