Does the political subdivision (PSD) code reported on a W-2 belong to the employee or the employer?

by Elizabeth W. Kidd, CPA | Jan 31, 2019

Act 18 requires the political subdivision (PSD) code to be reported in Box 20 of the W-2. Is this the employee or employer PSD code?

The code to be included on the W-2 is the code indicating where the withheld taxes have been remitted by the employer. It is generally the employer’s location, although employers with multiple locations may have elected to remit to a single authority.

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Answered by: Elizabeth W. Kidd, CPA, is a retired accounting instructor in Erie, Pa.

The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
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