5Verify and Correct Politcal Subdivision Codes for New Employees

You must confirm that new employees have the correct Pennsylvania subdivision (PSD) code and school district on their tax cards.

The card derives these values based on their resident and work fields on their Pennsylvania PSD component. The New Hire process automatically populates these values based on the city of residence. You must validate and correct this info accordingly.

Refer to the Pennsylvania legislative authority for the latest PSD codes by address.

The payroll process also automatically populates the PSD code and school district for the work fields. These values are based on the info you entered when setting up your work location.

Once the resident PSD code and school district are correct, the payroll process withholds the higher of the two rates. Those rates are:

• Resident rate (city and school)

• Nonresident rate (city only)

In cases where the rate is the same, the payroll process automatically withholds the resident tax.