Defining employee year-end PA TCD/PSD overrides

For PA Act 32, on the W-2 you must include in the locality box the two digit code for the tax collection district where the tax was paid. Default functionality prints the W-2 description in the locality box (Box 20). Additional functionality is available for PA reporting, see details above in Define Other Options Topic for data item PA Local combine by W2 Desc. The W2 description will either report from the local Tax Authority (PR06) W2 description or from the PA TCD W2 description if defined by company/process level in the Addl EIN button of the PA state Tax Authority.

Use PR11.5 to override the W2 description by employee. This may be necessary if the W2 description printing in Box 20 is not correct for an employee. Possible scenarios are if an employee's YTD tax amount was remitted to more than one TCD during the year, if your tax reporting process changed during the year, if an employee moved work locations during the year, if using the PA state PR06 W2 PA TCD W2 description by company/process level does not apply to every employee, etc.

This data can also be loaded using Employee Year-End PA TCD Override Upload (PR597). For details, see Payroll File Layouts.

Access Employee Year-End PA TCD Override (PR11.5).
Select a company, and a report entity if applicable.
Specify in a payroll year in the Payroll Year field.
Select the employee for which you want to specify year-end parameters.
Select a local deduction code. Note: Consider all local tax deductions with tax category "01" and tax type "CI" and "SD".
Inquire.

Details for the local deduction code is displayed including:

Tax Authority

The tax authority for the local deduction.

Type

The City "CI" or School District "SD" type for the tax authority.

Category

The tax category for the tax authority. Reference "01" tax category.

Local W2 description

The W2 description from the local tax authority.

Comp/RE W2 description

The W2 description from the PA state PA TCD W2 desc (based on company/process level).

YTD tax amount

The YTD tax amount from the quarterly file.

YTD Wages

The YTD taxable wages from the quarterly file.
In the detail section, specify this information:

Override W2 description

Specify the two digit TCD code.

Tax amount

Specify the associated tax amount.

Reportable wages

Specify the associated taxable wages. If overriding both SD and CI tax amounts, only update reportable wages for the CI tax category. Otherwise, taxable wages are doubled.

Override PSD Code

Specify the associated PSD code to override. Use this override when reciprocity scenarios cause taxation on the 'live' location rather than the 'work' location.
Use multiple lines if the YTD tax amount was remitted to different tax collection districts during the year. If you are specifying more than one line of data, then the total tax amount must equal the YTD tax amount displayed for the deduction.
Select the Change form function.
Repeat steps 2 through 9 for all local tax deductions for which you must define overridden PA TCD W2 descriptions, or PSD Codes.
Run PR297 to verify results.