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Former Member

Issue with PA EIT when 207 and 208 are different

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

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 07, 2011 at 04:01 PM

    I assume that you have maintained the 01/01/2012-12/31/9999 date in T5UTZ table for these tax auth. If not please maintain it.

    Also read the [ for more update notes and other info.|Pennsylvania ACT 32;

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  • author's profile photo Former Member
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    Posted on Dec 07, 2011 at 04:05 PM

    Thanks for the response. I have read through the PA Act 32 thread, I had tried to change the Nexus indicator as was suggested there, but that didn't help. Also, since the tax IS being calculated correctly if IT 207 & 208 are set to the same PSD, then the dates should be OK.

    If you can think of anything else to check, just let me know.

    Lisa

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 07, 2011 at 04:27 PM

    Its working fine in my system:

    If I make IT207 = PADW and IT208 = PAAH -> 1% withholding for PADW

    If I make IT207 = PAAH and IT208 = PADW -> 1% withholding for PAAH.

    Only withholding is part of Act 32. LST is part of another old tax rule, LST will be deducted when you maintian local tax authorities.

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 08, 2011 at 07:00 PM

    Amosha,

    Thanks so much for your help! I added the dates, and that did seem to fix the problem. One extra question....do I need to maintain the dates for all PSD entries in 5TUTZ or just for the areas where we have LST?

    Thanks again,

    Lisa

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    • Former Member

      LST is not part of PA Act 32.

      T5UTZ is for PA Act 32 local EIT tax. Here you set the start for the PA Act 32 recripro rule. For Lancaster,Wyoming,Chester and Lebanon it was 07/01/2011 and for all the rest of the local except Philadelphia and Pittsburgh it is 01/01/2012.I think both Philadelphia and Pittsburgh are not part of the Act 32.

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