Why is it important to have the correct PSD (Political Subdivisions) codes set up accurately in your payroll system for an employee?
A) It will impact the employee’s Pennsylvania State Unemployment withholding portion.
A) Incorrect. PSD Codes does not impact the employee’s Unemployment.
B) It drives the correct State Income Tax withholding from your payroll system to be reported on the return.
B) Incorrect. PSD Codes do not impact the State Income Tax withholding.
C) It tells the Employers and Tax Agents where to remit and distribute the correct amount of local earned income tax to the appropriate taxing jurisdictions
C) Correct. Way to go!
D) All of the above are important.
D) Incorrect. Please try again.