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EPY: Pennsylvania Act 32 Local Earned Income Tax Changes Effective January 1, 2012 (Doc ID 1369819.1)

Last updated on JULY 08, 2021

Applies to:

PeopleSoft Enterprise HCM Payroll for North America - Version 8 SP1 and later
Information in this document applies to any platform.

Purpose

Pennsylvania Act 32 changes the way employers must withhold, remit, and report Pennsylvania Local Earned Income Taxes. Act 32 imposes many new tasks and responsibilities on Pennsylvania employers for the calculation and withholding of Pennsylvania Local Earned Income Tax. The provisions and requirements of Pennsylvania Act 32 are effective beginning with wages paid on or after January 1, 2012.

 

NOTE: In the attached documents, company name, paygroup, tax locality, employee name, employee id, employee details, etc. represent a fictitious sample (based on DEMO data used in the PeopeleSoft Payroll for North America DEMO environment).  Any similarity to actual persons, living or dead, is purely coincidental and not intended in any manner.

Please refer to Document 1408814.1 for any Bugged issues and fixes pertaining to the PA Act 32 functionality.

Questions and Answers

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In this Document
Purpose
Questions and Answers
 What is Pennsylvania Act 32?
 How will Tax Collection Districts be structured under Act 32, the new earned income tax collection law?
 Will monthly/quarterly reports be delivered to comply with Act 32 PSD jurisdictional requirements?
 Will there be any change to the Local Services Tax (LST) codes as a result of Act 32?
 Are there special requirements for employees who reside and/or work in Philadelphia?
 Is there any difference in the employee local tax data or tax distribution setup required to comply with PA Act 32?
 How do I setup employee tax data rows when an employee works in Pittsburgh, which requires the local 61000ER, in addition to the PSD work and resident local?
 The employee's paycheck/advice does not reflect the name of the PA Locality.
 Only the PSD work location is showing on Paycheck Data and in reporting. How are we to know what is being used to calculate the tax amounts since everything is showing the work location?
 Does the new Pennsylvania Act 32 functionality provide any reciprocity
 Can additional withholding be set up for an employee's resident location?
References

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