1. What is the Tax Withholding card?
  2. Manage Tax Withholding Cards During Employee Transfers

Manage Tax Withholding Cards During Employee Transfers

An employee transfer can occur between:

  • Payroll statutory units (PSUs)

  • Tax reporting units (TRUs)

  • Locations

Each transfer can impact the employee's tax card in different ways.

Before changing the Tax Withholding card, ensure all other activities related to the transfer are complete. Then you can open the card for editing.

Transfers between PSUs

You transfer an employee from one PSU to another using the Local and Global Transfer process. In these cases, the process creates a Tax Withholding card for their new TRU and new assignment.

Note:

Because of changes to the 2020 W-4, there are some cases when the process can't copy any employee withholding info to the new card.

  • Because of changes to the 2020 W-4, there are some cases when the process can't copy any employee withholding info to the new card.

    • Medicare exemption

    • Federal unemployment insurance (FUTA) exemption

    • Social Security exemption

    • Federal wage accumulation exemption

    • Federal income tax (FIT) look-back rule employee override

    • FIT regular amount

    • FIT regular rate

    • FIT supplemental amount

    • FIT supplemental rate

    • IRS lock in date

    • Maximum FIT allowances

  • If the employee has a 2020 or later W-4, then the process copies all info to the new card except Exempt from Federal Income Tax Withholding.

  • The process doesn't copy the state or local tax card configuration. If the person requires withholding other than the defaults, you must manually define them.

  • The process automatically sets some default values, such as:

    • Pennsylvania political subdivision (PSD) code

    • Pennsylvania school district

    • State unemployment (SUI) and disability insurance (SDI)

To perform the transfer:

  1. Perform the transfer using the Local and Global Transfer task.

  2. When complete, if the employee had a pre-2020 W-4, have them complete a new Federal W-4 form through Self Service.

  3. Update the new tax card with any special state or local withholdings requested by the employee.

Transfers between TRUs

Transfers between TRUs involve adding the TRU associations on the card. Before you begin, you must have already created the employee's new assignment.

When you use the Local and Global Transfer process to move an employee to a different TRU, it:

  1. Adds the TRU association to the person's current tax card, and adds the assignment

  2. Sets some default values, such as:

    • Pennsylvania PSD code

    • Pennsylvania school district

    • SUI and SDI state info

Transfers between locations

For location transfers that don't involve a change in TRU, you need to update the tax card if:

  1. The new location has special state or local tax requirements.

  2. The person has changed their withholding selections on their W-4.