Pennsylvania Local Taxes

Employees living and working in Pennsylvania require special maintenance on their tax cards.

The following operations are available.

What you want to do	How you do it
Enter a political subdivision (PSD) code using employee self-service	You can allow employees to enter and update their own resident and work PSD codes on the Pennsylvania Residency Certification form by enabling self-service. If enabled, this is the form they use to enter the PSD info.
Make balance adjustments	For further info, see Oracle Cloud Human Capital Management for United States: Balance Adjustments (1600728.1) on My Oracle Support.
Perform ongoing maintenance	This involves: Reviewing employee run results and payslips Running the HR Sync process Performing manual updates to PSD codes
Review run results to verify accurate withholding	Use the run results table of the Statement of Earnings to verify the following. Tax Collection District Resident PSD code Work PSD code You can also use the audit report and audit detail from the Third-Party Periodic Tax Extract Audit processes to verify local withholding.

For further info, see the following sections.

Enter a Political Subdivision Code

You can allow employees to enter and update their own resident and work PSD codes on the Pennsylvania Residency Certification form by enabling self-service. If enabled, this is the form they use to enter the PSD info.

To use self-service:

1. On the Home page, click Me and then Pay.

2. Click Tax Withholding.

3. In the PA row that includes the fields for updating the PSD info, click Edit.

4. Update the fields as needed.

   • Resident PSD Code

   • Resident School District

   • Work Location PSD Code

   • Work School District

Perform Ongoing Maintenance

After you have correctly set up the records, verify the payroll process withholds the appropriate Pennsylvania taxes by reviewing the employee's run results and payslip.

Another important part of Pennsylvania taxation is ongoing employee maintenance. The HR Sync process tries to keep records synced. However, these transactions require manual maintenance of the PSD code. The HR Sync process doesn't automatically update this info.

• When the employee lives in a taxation district that's different than what their home address indicates.

• When there is a HOME or WORK address change for an employee.

  Although the HR Sync process updates the PSD code, the info might not be correct. The process bases the PSD code on the postal address city. Check to ensure the home and work PSD codes are accurate whenever there is a change to a home or work location.

• When there is more than one PSD code for the city or township. Or more than one school district for the city or township in which the employee lives.

  If there is more than one, the process uses the first PSD code in the list, which isn't always the correct one.

Verify Accurate Withholding

The run results table of the Statement of Earnings stores the following.

• Tax Collection District

• Resident PSD code

• Work PSD code

View the local wages and taxes element to see a summary of these items in the run results.

You can also use the audit report and audit detail from the Third-Party Periodic Tax Extract Audit processes to verify local withholding. These reports show you all taxes withheld for Pennsylvania locals in the jurisdiction they're reported to. In most cases, this is the work jurisdiction.

Note: Philadelphia isn't a part of Pennsylvania Act 32 Reporting.

Like the Periodic audit report, the Quarterly audit report:

1. Combines city and school wage and tax data

2. Shows the Pennsylvania local taxes and PSD code for the jurisdiction that the taxes are reported to

Note: The payroll process remits the Pennsylvania local taxes to the resident location when he employee works outside of Pennsylvania.

For further info, see Oracle Cloud Human Capital Management for United States: Payroll Reconciliation (2086251.1) on My Oracle Support.