We have a few scenarios on local taxes (since we're in PA):
1) Is there a way to find the tax rate that is applied to a tax profile? In Legacy, the user set up the Local codes and specified the withholding rate for each local. In 2.0, the user specifies the residence location and the work location for each employee, but they have no way of knowing what tax rate will be applied.
2) We're experiencing a problem with the Employers Expense Summary Report in Payroll 2.20 where Local Taxes are being combined for two locals instead of being listed separately. Our situation is this: Employees' work location is inside a city's limits and the Local Services Tax (LST) needs to be withheld for any employee who works in this location. The employee is also required to pay a .3% "commuter tax" if they reside outside of the city, but work in the city location. They are also required to pay a Local Tax to the municipality in which they reside. In Legacy Payroll, withholding for the residence Local Tax and the Work Local Tax ("commuter tax") withholding amounts were listed separately on the Employers Expense Summary Report (EESR). Local Services Tax, in Legacy Payroll, was handled as a deduction and was shown separately. In Payroll 2.0, Local Services Tax is withheld as a tax and IS SHOWN separately on the report. However, in Payroll 2.0, both the residence and work Local Taxes are combined and shown as one amount on the EESR under the work tax group. It seems that the taxes are combined during Payroll Tax Calculation and, therefore, we have no chance of separating them by modifying the EESR. Has anyone else experienced a similar issue and/or have a solution or workaround?
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Steve Iwanowski, NextStep Technology Advisors, aka DSD Lancaster PA ¯\_(ツ)_/¯
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