4Withhold Pensylvania Local Courtesy Taxes

To withhold local taxes for Pennsylvania residents who work outside of Pennsylvania as a courtesy, configure your payroll statutory unit (PSU) or tax reporting unit (TRU) appropriately.

To withhold local taxes for residents working outside of Pennsylvania:

1. From your implementation project, start the appropriate task.

   • To configure your PSU, use Legal Entity Calculation Cards.

   • To configure your TRU, use Legal Reporting Unit Calculation Cards.

   Settings on the TRU override those on the PSU.

2. Set an effective as-of date, and click Calculation Rules for Tax Reporting and Payroll Statutory Unit.

3. In Component Groups, click PA.

   Add it if it doesn't exist.

4. In Calculation Component, select State Income Tax.

5. Click Enterable Calculation Values on Calculation Cards.

6. Click Create.

7. Search for and add Calculate PA Resident Tax for Non-PA Work Location.

8. Enter Y as the value.

9. Click OK, and save your work.