Changes are coming - STANDARD and SQL - be sure to read in order to be prepared!
Healthcare Reform Requirements:
To accommodate for the requirement of the 2012 W2 reflecting the Employer-Sponsored Health coverage, you will need to create a Non-Cash Benefit adjustment for each employee that you contribute to their healthcare premium before the first payroll dated 1/2011. It will be required to report the combined amount of the employer and employee contributions in Box 12, coded DD on the 2012 W2. This amount being reported is not taxable.
NOTE: It is NOT REQUIRED to report this information on the 2011 W2 reporting.
COATS will have the ability to do this within the Year-End Update.
PA Act 32 requirements:
Effective January 1, 2012, all employers in PA must assign PSD codes (Political Sub-Division Code) to identify the municipalities and school districts for each tax collection district (http://www.newpa.com/node/6711#act32eitrates).
This will be handled within COATS by updating the locality codes in COATS. Each of our clients have set up their local codes based on their own individual needs.
Unfortunately, this does not allow COATS to do an update across the board as none of you are uniformly set up the same.
With this new change, you will need to set up your local table based on the township/locality sub-categories updating the Local Name field to be the 6 digit PSD code vs the locality name.
For some of you, there could be more than 100 PA local codes. You will need to update your local tax table by adding new codes.
PA01-PA99
PA0A-PA0Z
PA1A-PA1Z (replacing the 3rd character with 3, 4, 5, 6, 7, 8, 9 and the 4th character A-Z)
PAAA-PAAZ (replacing the 3rd character with B-Z and the 4th character A-Z)
NOTE: Each new code MUST start with PA
These new codes should handle a client's needs for all possible townships and their subcategories.
We recommend that you create a spreadsheet for your staff so they know what PA local codes in COATS tie out to the required PA PSD codes for local w/h.
After updating the local table, all employees tax screens must be updated to reflect their NEW local code.
You will need to update your local table and employees tax screens PRIOR to doing your 1st payroll dated 1/2012.
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