How do I configure Pennsylvania local taxes?
Employees living and working in Pennsylvania require special configuration and maintenance on their Tax Withholding cards.
You can configure Pennsylvania local taxes in these ways.
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In this case |
This is what happens |
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Set up Pennsylvania subdivision (PSD) codes for work locations |
Use the Locations task to review and if needed, override the PSD code for each Pennsylvania location. |
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Allow employees to set their PSD codes through self-service |
You can allow employees to enter and update their own resident and work PSD codes on the Pennsylvania PSD component of their Tax Withholding card by enabling self-service. If enabled, this is the form they use to enter the PSD info. |
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Withhold local courtesy taxes |
You can configure your payroll statutory unit (PSU) or tax reporting unit (TRU) to withhold local taxes for Pennsylvania residents who work outside of Pennsylvania as a courtesy. |
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Configure Pennsylvania and Maryland reciprocity |
A reciprocity agreement exists between Pennsylvania and Maryland. You must perform configuration at the organization level to support employees subject to this agreement. |
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Verify and correct the PSD code for new employees |
Use the Calculation Entries task to confirm that new employees are assigned to the correct PSD. |
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Configure exemptions to local taxes |
Use the Calculation Entries task to set exemptions for local income taxes and occupational or head taxes. |
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Perform balance adjustments |
For further info, see Oracle Cloud Human Capital Management for United States: Balance Adjustments (1600728.1) on My Oracle Support. |
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Verify local withholding accuracy |
After processing payroll, use the run results table of the Statement of Earnings (SOE) to verify:
You can also use the audit report and audit detail from the Third-Party Periodic Tax Extract Audit processes to verify local withholding. |
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Perform additional maintenance |
This involves:
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