PA Act 32 - storing PSD code / PSD code history

maryclaire,

I've posted in LawsonGuru, Lawson Commumity as well as a few other sites and was feeling as though I was one of very few employers trying to plan and prepare for the Act 32 changes.  I'm glad to see I'm not alone

I just minutes ago finished sitting in on a webinar presented by Ernst and Young on Act 32.  A lot of information shared that helped reconfirm what I already though I knew as well as shared new information.

We also are a Lawson/BSI client and therefore have the same questions you do.  We are an out of state employer and are planning to do consolidated filing with one TCB.  Lawson has provided via PR06/PR89 a place to store a PSD code.  After attending the E & Y webinar, here is what I have learned.

An employer will be required to provide on employee W-2's the PSD code and name of the TCB, the taxable wages and tax withheld for each PA locality.  There is also a current law that states it must also display the amount of tax paid to the TCB (there is talk that this requirement will be done away with because there is no where to display this on the W-2).

An employer will be required to remit on their annual returns to the TCB's the same information as above.

I think this means that we have to display the TCB of where the tax was remitted to (in our case one TCB because we are consolidating) not the individual TCB's that we weould have to display if we weren't consolidating.

In order to meet the filing regualtions, I am anticipating that Lawson may have some changes that come through with their year end CTP.  I think I'm going to contact them in the next day or so to ask that question.  If they're not developing any changes to accomidate the new reporting requirements then we are going to need to build something in house. 

As far as your question on PSD code history, if the PSD is on the PR06 (there would be a tie between the deduction tied to the employee at the time payments were created and the PSD code for that deduction or authority.  

I've asked BSI if there have a tool or chart that maps BSI tax authorities to the proper PSD code and they indicated there do not have a chart or tool that they can provide to me.  I'm not sure how I am going to populate the PR69 with the correct PSD code.  Teh only option I can think of is to compare the DCED PSD code descriptions to the BSI tax authority listing descriptions and manually identify the correct PSD code.  

How are you planning to do this?  How many localities are you dealing with at your company? 

hi jodi -

you are not the only one!

our business team manually did the PSD mapping in-house.  they took a combination of the BSI municipality code and the BSI school district code and mapped that to a unique PSD code.  the problem is that the PR69 enhancement seems to allow only for a one-to-one correspondence of BSI municipality code to PSD code, so we are planning to house the one-to-many relationships external to PR69.  i am not sure if Lawson offers any other way to accomplish this?

i'm not sure how PR06 maps PSD code to employee, as i think you are saying in your post?  we are adding user fields in HR11 to assign PSD codes to employees.  we are tracking PSD codes for both home and work locations in PA.

in addition, we have a need to track history on PSD code changes for each employee.  we are still trying to determine the best way to accomplish this.

Message to BSI users - We received a notice from BSI late last week introducing "cloned" tax authorities concept for the state of PA. It looks like the cloned authorities are how BSI will handle situations where a township may be tied to multiple school districts such all Allentown township and BSI's example of Hector township.

With this change that BSI is making, it appears that there will be a one to one relationship between the BSI Tax Authority (PR06) and PSD codes. Are others thinking the same thing or is there something I'm not thinking of? If this is the case, isn't there also now a 1-1 relationship between deduction codes (PR05) and PSD codes?

I know some have already created custom tables, decided to use userfields, or come up with other clever ways to accomidiate PA's requirements. If the cloned authority concept would have been introduced sooner, would it have eliminated the need to these?