Pennsylvania Act 32 Payroll Compliance System
Pennsylvania maintains a unique Local Income Tax structure due to the state's adoption of Act 32. CYMA created a system, as part of our Payroll software solution, to easily and properly calculate, collect, and report Act 32 related Local Income Tax on quarterly reports and employee W-2s.
For Pennsylvania employers, CYMA Payroll software provides a user controlled, Local Tax table for Political Subdivision Codes (PSD) codes with available resident and non-resident rates for local income tax. Employers may input or import as many or as few PSD codes as needed for their organization.
Need to change PSD rates? Either manually update the rates or update in bulk with the General Import feature as new rates become available. CYMA's General Import feature allows for updating a select list of PSD code rates or all 2600+ rates through a simple, reusable import process. New PSD and rates can be added at any time.
Workplaces are assigned PSD codes through a Location entry.
Individual employees have PSD codes assigned directly to their record either manually entering, copying across a range of employees or via General Import of a .CSV file.
Which rate should be used? If both location and individual employee PSD codes are used, the system will automatically update the local tax rate on the employee record to higher local percentage as per Act 32 guidelines.
At the end of the quarter, CYMA can report the information needed for completing the PA Earned Income Tax form or CYMA offers the ability to eFile and pay. Six additional Pennsylvania tax forms are available through this Tax Forms and Payments feature along with dozens of other Federal forms and forms for all 50 states.
Completing W-2s with proper local tax information in box 18 has never been easier. If the employee moves during the year, CYMA's Payroll System can handle the change and note the employee record. The W-2 form can handle multiple locality changes.
Using this powerful system can help ensure proper local tax payments and compliance with Pennsylvania's local tax structure. For a full demonstration, contact CYMA at 800-292-2962.