Adjust an Employee's Pennsylvania Act 32 City and School District Taxes

In this example, you have found that an employee hasn't been paying sufficient city and school district taxes for their Pennsylvania PA Act 32 jurisdiction. Therefore, you must adjust these local-level balances.

In this case, the employee:

• Works in Salford Township jurisdiction for the entire year (PSD code 461503)

• Resides in Allentown and Allentown City school district jurisdiction for the entire year (PSD code 390101)

The payroll process under-taxed:

• City tax by $10

• School district by $5

You want to make these corrections during your next payroll run.

This involves multiple steps.

What you need to do	How you do it
Ensure you created the eligibility links for the elements	Use the Elements task to verify eligibility links exist for these predefined balances. Residence City Tax Residence School District Tax Local Wages and Taxes
Check the employee balances before you adjust them	Use the Person Results task to confirm the taxes' balance results on the person's SOE.
Adjust the balances	Use the Adjust Individual Balances task to correct these balances.
Verify the adjustments	Use the Person Results task to verify you adjusted the balances correctly.

For further info, see the following sections.

Create the Eligibility Links

You must ensure you have created the eligibility links for your elements. If not, the elements aren't available for adjustment. In this example, you're adjusting the employee's residence city and school district taxes, as well as the local withheld balances.

To adjust the City Withheld, School Withheld, and Local Withheld balances:

1. View these elements in the Element task.

   • Residence City Tax

   • Residence School District Tax

   • Local Wages and Taxes

2. Make sure you have established eligibility links for them.

Check the Employee Balances

Before performing the adjustment, verify the employee's current balance values.

1. Start the Person Results task.

2. Search for and select the employee.

3. Navigate to their statement of earnings.

4. Select the City or Tax District Tax balance group, and click Search.

5. In the search results, select the City Withheld balance.

6. Select the School District Tax balance group, and click Search.

7. In the search results, select the School Withheld balance.

8. Select Payroll Archive.

9. Select the Balance group usage used for archiving local city balances balance group, and click Search.

10. In the search results, select the Local Withheld balance.

Adjust the Balances

You must perform individual adjustments for each balance: city, school, and local.

1. Start the Adjust Individual Balances task.

2. Search for and select the employee.

3. Enter the appropriate effective date.

   Choose a date that's relevant to the PSD codes at the time of adjustment.

4. Select the Residence City Tax element.

5. For Tax Calculated, enter $10 as the adjustment value for the Allentown city balance to resolve the city withheld shortfall.

6. In Costing and Payment Details, enter the following.

   Field name	What you select
   Include adjustment in payment balance	No
   Include adjustment in costing process	No

7. Click Submit.

8. Click OK.

9. Repeat this process to adjust the School Withheld balance for the Residence School District Tax element.

10. Repeat this process to adjust the Local Withheld balance for the Local Wages and Taxes element. This adjustment is required because the employee's work and residence are in a Pennsylvania PA Act 32 jurisdiction.

    Note: This applies even if this jurisdiction has only one address.

    When you perform this adjustment:

    1. Adjust the same withheld values in the Local Wages and Taxes element that you did in the previous two adjustments.

       For example, for a total adjustment of $15, make these adjustments.

       • $10 for Resident City Withheld

       • $5 for Resident School Withheld

    2. Set the State input value to PA.

11. Click Submit.

12. Click OK.

Verify the Adjustment

To review the balances after the adjustment:

1. Click Person Results under My Client Groups.

2. Search for and select the employee you adjusted.

3. Click Show Filters. Clear the filters so the search displays all results.

4. Enter the date of the adjustment as the process date.

5. Click OK.

6. Click Search. This displays the details of the processes.

7. Confirm the balance adjustment of the City Withheld balance.

   The results should show the additional $10 for the Pay run, Calendar month-to-date, Calendar quarter-to-date, and Calendar year-to-date values. If not, verify the adjustment amounts and correct as required.

8. Repeat these steps to confirm the adjustment of the School Withheld balance.

   The results should show the additional $5 for the Pay run, Calendar month-to-date, Calendar quarter-to-date, and Calendar year-to-date values. If not, verify the adjustment amounts and correct as required.

9. Repeat these steps to confirm the adjustment of the Local Withheld balance.

   The results should show:

   • Total of $15 for both the city and school district tax adjusted values

   • Additional $15 for the Calendar year-to-date value

   If not, verify the adjustment amounts and correct as required.