I'm working on the year-end updates, and I'm currently testing the changes for the 1% PA local wage tax withholding. It seems that something is not working correctly. I've been using PADW (Collier Twp) and PAAH (Cecil Twp) for my testing.
Please see my test scenarios. Cecil Township PAAH has a $1 local service tax based on 208 entry. And, with PA Act 32 the system should begin calculating the 1% EIT based on 207 entry.
- If I make both IT207 and IT208 set to PADW ->1% tax calculates correctly, as well as an additional $1 local service tax
- If I make both IT207 and IT208 set to PAAH -> 1% tax calculates correctly, as well as an additional $1 local service tax
- If I make IT207 = PADW and IT208 = PAAH -> Only the $1 local service tax is calculated
- If I make IT207 = PAAH and IT208 = PADW -> Only the $1 local service tax is calculated
Additionally, I tried to update the Nexus Indicator from IMG. I actually entered for both PADW and PAAH, and tried with both the default and Nexus option, but none of those entries solved the problem either.
Does anyone have any ideas as to how to fix this? Since the vast majority of our employees don't live in the same township as their office, this is a showstopper for us.
Thanks,
Lisa