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The Local withholding taxes are not getting calculated for PA employee, resident of PA local tax areas (Manchester Twp & Central York SD) - Post BSI Upgrade 10.0.D

former_member186776
Participant
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Hi All.

Recently we have upgraded to BSI Tax factory 10.0.D successfully.

I have faced one issue with Local withholding taxes for an Pennsylvania Employee, resident of  PA local tax areas (Manchester Twp & Central York SD).

It should calculate as per the below tax rates.

PB6H - Manchester Township =0.5%

PAAZ - Central York S D = 0.5%

We observe that the local withholding taxes are getting calculated correctly till 31st Dec 2014, but not from 1st Jan 2015.

USTAX Calculation for the 03/2015 PP.

USTAX calculation for the 24/2014 PP.

we have approached BSI and they have responded that BSI Interface for 2015 script we are passing RC: 2 for PA locals and RC: 1 for the PA locals for 2014.


As suggested we changed the RC to 1 in BSI interface and executed the batch test, still the withholding tax is not calculating for the PA locals.

Please  help me out on this.

Regards,

Siraj.

Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member
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Hi,

I know its a old post but would like to know how you changed RC to 1 in the BSI interface. Can anybody tell me how RC is changed to 1

Regards,

Ajay.

former_member186776
Participant
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Hi Josh,

Maintain the Table : VC_T799BATTRIB03C with HR attribute groups and HR attribute values.

The maintain courtsey withholding in IT0207 and check the results.

Regards,

siraj.

Former Member
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Hi Siraj,

Thanks for your response. Can you please tell me the difference between Primary(default) and Secondary(Nexus) indicator in T5UTRC table with example.

Regards,

AJ

former_member186776
Participant
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Hi AJ,

Nexus indicator determines the reciprocal allocation of resident and non-resident wages and taxes, when an employee resides in one state and earns wages outside of his or her resident state.

TaxFactory automatically calculates withholding taxes based on the primary regulatory withholding requirements for each resident /non-resident authority pairing. That is, the default value for this field in the standard system is Primary (Default) - Business tax registration not filed.

Changing the value of this field enables TaxFactory to automatically calculate withholding taxes based on the secondary regulatory withholding requirements for each resident /non-resident authority pairing.

Courtesy withholding determines if the system applies courtesy withholding when an employee works and resides in different tax jurisdictions.

When the system applies courtesy withholding, the tax is always withheld for the resident authorities.

Thanks,

siraj.

Former Member
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Hi Siraj,  I know this is an old post but I'm hoping you can help me.  How do you have your tax authorities set up on IT0207 and IT0208?  Do you have the township on one and the school district on the other?  If so, do you have a local services tax based on worksite, and how do you collect that?  We're using IT0208 for the LST which keeps us from putting the school district on IT0208.

Thanks very much,

Lou Ann

former_member186776
Participant
0 Kudos

Hi Lou Ann,

Maintain the Table : VC_T799BATTRIB03C with HR attribute groups and HR attribute values.

The maintain courtsey withholding in IT0207 and check the results.

Regards,

siraj.

Former Member
0 Kudos

In your US tax calculation schema (or the equivalent of UTX0) the parameter 3 of UPAR1 BSI VER might be "blank". Change it to "1" and see if it helps.

Thanks