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Set Up and Administer Pennsylvania Act 32 Local Tax

Set Up and Administer Pennsylvania Act 32 Local Tax

Issue/Symptom/Question

Set up and administer the Pennsylvania Act 32 Local Tax

Applies To

Penta for Windows

Payroll

Resolution/Fix/Answer

1 . Submit completed registration and filing intent forms with the appropriate tax collector per individual tax collector requirements. This occurs outside of PENTA.

  1. Obtain and complete forms required by the tax collection agency selected for your monthly local wage and tax reporting obligations.

  2. Submit forms as required by your tax collection agency.

2. Set Up Tax Collector Information

A. Query PA State Tax records and create them if necessary. Payroll > Setup > Taxes > State Tax Information

  1. Query a PA State Tax Information record.

  2. Click the Tax Collector Info button. PENTA opens the Pennsylvania Tax Collector Information pop-up window.

  • If tax collectors are set up, proceed to Step 3.

  • If tax collectors are not set up, execute the following steps to set up tax collector information for the collection agency you registered with for monthly electronic reporting:

  1. Enter the Effective Date.

  2. In the Local Tax Collector Code field, enter or select the code associated with your tax collector.
    Notes:

  • PENTA populates the Electronic File Format field when you enter/select the Local Tax Collector Code.

  • If you must report to a tax collector not listed in this field’s LOV, submit a ticket via the Penta Support Portal

  1. Enter your Employer Account Number as assigned by the tax collector.

  2. In the Employer TCD Code field, enter the code of the tax collection district you are registered in for filing monthly local tax returns.

  3. In the Employer School District field, enter the code of the PA school district associated with the Employer TCD Code.

  4. In the Employer PSD Code field, enter the employer PSD code associated with the Legal Entity.

  5. Close the pop-up window.

  6. Repeat steps 2.A.1 – 2.A.2 for each LEOU with Pennsylvania tax obligations.

  7. Close the State Tax Information window.

3. Review Pennsylvania Withholding for the Reporting Month

A. Generate and review reports.

PENTA Reports > Report Initiation

  1. Generate one or more of the following reports:

  • Employee Local Tax Report (Report Code EMPLOCALTAX)

  • Local Withholding Report (Report Code LOCALWH)

  • PR Tax Status Report – Local (Report Code PR_LCLTAXSTATUS))

  • Local W/H by Std Report Codes (Report Code LOCALWH-STD)

  • Local W/H by Std Rpt Codes – Smy (Report Code LOCALWH-STD-SMY)

PENTA Reports > Report Monitor, Print, and View

  1. Print and/or preview the report(s) to review Pennsylvania local withholding.

  2. If report(s) reveal records in need of correction, refer to the steps for recording a payroll adjustment in the PENTA Reference Manual (Payroll > Window Descriptions > Manual Check > introduction section) and perform adjustments as needed.

  3. Repeat steps 3.A.1 – 3.A.3 as needed.

4. Generate the Electronic File

A. Set up and generate the file.

Payroll > Processing > Periodic/Quarterly/Year End Processing > Electronic Monthly Local Tax Reporting

  1. Enter the Legal Entity OU Id for which you are preparing the return.

  2. Enter State Code PA.

  3. Enter the Tax Year.

  4. Enter the Tax Month. In the Local Tax Collector Code field, PENTA populates the code of the local tax collector you assigned to the Legal Entity in the State Tax Information window.

  5. To include child Legal Entities in your return, enter Y in the Are child LE OUs to be Reported? field.

  6. Enter the name, email address, and phone number of the person in your organization designated as the tax collector’s contact.

  7. Enter a name for the electronic file.
    Some programs you may use to transfer the file to the tax collector do not recognize punctuation or special characters (\ / : * ? " < > |). Avoid using them when entering a filename. PENTA saves the file in your Report Output Directory unless you specify an alternate location.

  8. Close the window to generate the file.

  9. Repeat steps 4.A.1 – 4.A.8 for each Legal Entity with PA local tax filing obligations.

5. Submit the file to the Tax Collector

A. Submit the file. Occurs outside of PENTA.

  1. Transfer the file(s) from your Report Output Directory to a location from which you can submit the file(s).

  2. Follow instructions issued by the tax collector to submit the file(s) as required.