Pennsylvania Resident Tax Elections
Retail grocery business, ~30k employees & ~270 locations.
We are seeing an increase in notifications from PA tax agencies (Berkheimer, Keystone, etc.) that we are withholding the incorrect resident tax rate for some of our employees. Of course, this is up to the employee during their onboarding to select the appropriate municipality, which apparently they are not doing. The state/municipal page during onboarding gives specific information for each of our operating states and also includes the link to the PA Municipal website where they can enter their home address and get the correct locality, however I imagine most people are not reading all of this and simply selecting where they believe they live which ends up being incorrect. Most of them are probably teenagers or young adults that are just not paying attention or using the resources provided at the time.
Our tax department is asking if there is a way we can clean this up. I understand this is on the individual to set up their elections correctly, and we are not going to change their resident elections for them, but does anyone have any advice on how their company might handle ensuring employees select the correct municipality during onboarding?
We are thinking we will just have our HR personnel reach out to the individuals when these notices are received, but were curious if there is anything else we can do to be proactive about getting these set up correctly from the start.