"I changed the resident PSD code to my code in Bensalem Township where my new house is (looked it up on the official PSD locator), and kept the work PSD as 880000."
According to this website, that was the correct thing for you to do:
https://keystonecollects.com/faq/out-of-state-employer-pa-resident-employeesfile-quarterly-returns/
BTW, non-residents of NYC are not liable for the NYC income tax. Since you now live in PA, you should ask your employer to cease withholding for NYC. You are still liable for NY state income tax on your earnings from work you perform within New York State, so you do want your employer to continue withholding NY state income tax for you.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
