How do I configure Pennsylvania local Earned Income Tax?

Before you can process payroll that includes Pennsylvania local Earned Income Tax (EIT), it requires some special configuration.

Pennsylvania local EIT may require configuration in these areas.

For this	This is what you need to do
Enable Pennsylvania local earned income tax	Configure your locations with the political subdivision (PSD) codes. Configure your organizations for Pennsylvania local tax withholding. Configure your Pennsylvania employee tax cards. If you're registered as a combined filer for Pennsylvania Act 32 taxes, provide your Tax Collection District (TCD) combined-filing proxy.
Enable Pennsylvania and Maryland reciprocity	Configure your organizations and employee tax cards appropriately.
Configure Philadelphia city tax withholding	The payroll process automatically withholds city taxes for people living or working in Philadelphia. However, you must perform some configuration for employees who receive tips.
Adjust balances for Pennsylvania local taxes	If balance adjustments are required for taxes that are subject to Pennsylvania Act 32 reporting, you must perform each adjustment individually for each type of balance (city, school, and local). There are multiple balances that support Pennsylvania Act 32, such as city withheld and local withheld. For further info, see the following on My Oracle Support. Oracle Cloud Human Capital Management for United States: Balance Adjustments (1600728.1) Oracle Cloud Human Capital Management for United States: Balance Initialization (1912298.1)
Pennsylvania resident tax for out-of-state work locations	You need to make sure you configure your organizations to calculate Pennsylvania resident taxes for out-of-state workers.
Temporary work assignments in Pennsylvania	For employees who experience a change in work assignment of 3 or more months: At the beginning of the temporary assignment, set the work PSD code to the temporary assignment for the time period needed. When the assignment is complete, change it back. Work assignments that last fewer than 3 months don't require any configuration.