8Perform Ongoing Maintenance on Your Pennsylvania Local Taxes
After you've set up the records, you must verify that the payroll process withholds the appropriate Pennsylvania taxes. Do this by reviewing the employee's run results and payslip.
An important aspect of Pennsylvania taxation is its ongoing employee maintenance. The HR Sync process tries to keep records synced. However, these transactions require manual maintenance of the Pennsylvania subdivision (PSD) codes.
The HR Sync process doesn't automatically update this info when:
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Employee lives in a taxation district that's different than what their home address indicates.
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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.
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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.