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 by going to the
Year End Configurable
Fields page, clicking
Other Options,
and clicking
Miscellaneous. 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. Go to the Year End Configurable Fields page, click
Other Options, and click Miscellaneous.