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Bow to handle 2 EITs reported on W2 when state income for both is combined into a single box 16 State wages?

W2 states 2 EIT two different PSD. Earner worked at two offices, so correct

W2 box 16 contains total state wages (sum)

Local taxes withheld feach are correct

How do i handle this at the local level?

 

Each PSD asks for full State taxes, not requesting the properly divided taxes for each PSD? 

 

How do I handle this?

 

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Accepted Solutions
JamesG1
Expert Alumni

Bow to handle 2 EITs reported on W2 when state income for both is combined into a single box 16 State wages?

You only pay on one place of employment.

 

This Pennsylvania Department of Community and Economic Development states:

 

The primary place of employment is determined the day the taxpayer first becomes subject to the tax during the payroll period if the tax is levied at more than $10. If the tax is levied at $10 or less, it is the first place of employment during the calendar year based on the following priorities (listed in order):

 

  • The municipality where the employee maintains his or her principal office or is principally employed;
  • The municipality where the employee lives and works if the municipality levies the local services tax;
  • The municipality where the employee works and is nearest to his residence if that municipality imposes the tax.
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3 Replies
JamesG1
Expert Alumni

Bow to handle 2 EITs reported on W2 when state income for both is combined into a single box 16 State wages?

You only pay on one place of employment.

 

This Pennsylvania Department of Community and Economic Development states:

 

The primary place of employment is determined the day the taxpayer first becomes subject to the tax during the payroll period if the tax is levied at more than $10. If the tax is levied at $10 or less, it is the first place of employment during the calendar year based on the following priorities (listed in order):

 

  • The municipality where the employee maintains his or her principal office or is principally employed;
  • The municipality where the employee lives and works if the municipality levies the local services tax;
  • The municipality where the employee works and is nearest to his residence if that municipality imposes the tax.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Bow to handle 2 EITs reported on W2 when state income for both is combined into a single box 16 State wages?

Thank you for your answer and the reference. 

 

Your reply indicates that you only pay to one place of employment. Are you referring to only one of two different jobs or one of two different locations for a single company where the work performed is the same? 

 

My spouse is an eye doctor. She switched offices mid-year. She does not travel back and forth.

 

The parent company withheld under both our local  home PSD as the rate is the highest of all local tax rates in play. They also withheld under a second PSD corresponding to the school district where her former office was, presumably because that's where she was when the tax year began. However, the local tax rate in the area around her former office is identical to our home local tax rate, so I would have thought it would have just defaulted to that ---- what is the deciding factor when you have two local tax rates that are identical? Is there a default? 

 

Thank you very much for taking the time to help me sort this out.

Bow to handle 2 EITs reported on W2 when state income for both is combined into a single box 16 State wages?

OK I figured it out the rest of the way.

Thank you again

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