State Taxation

General Information

Workday uses your work and home address on file to calculate payroll related state and local tax withholdings from your pay. It is the employee’s responsibility to ensure your work and home address information is up to date. We suggest each employee review their pay slip in Workday each time they are paid for accuracy of pay, taxes and benefits.

You have access to view and make changes to your current Federal, State, and Local tax withholding elections in Workday, click on your Pay application, and click on Withholding Elections.

Work State and Work Local Tax Withholdings

The University is responsible for accurately withholding your state and/or local income tax based on your actual work location(s). It is your responsibility, in partnership with your manager, to ensure your work location(s) on record is accurate and up to date.

If your work location needs to be changed, you can do this by submitting an inquiry to HR via the Worklion Portal. The employee does not have access to update a work location.

State Withholding Form

If you live outside of PA and you want to complete the State Election form for your state, you can do this in Workday. Click on your Pay application, then click on Withholding Elections. Select the State Elections tab, click update and OK. Review the blank form for instructions then make your selections and click OK.

Exempt Box

Please be mindful that selecting this box will prevent state tax withholding. This does not mean that you will not have to pay tax on your earnings, only that we will not withhold tax on your earnings. Verify that you qualify for the exemption before you select this box.

State Reciprocity

If you work in PA but live in Indiana, Maryland, New Jersey, Ohio, Virginia or West Virginia, you may complete the Rev-419 and provide it to the Payroll office. Once this form is on file, Payroll will withhold state tax for your resident state only. The reciprocal agreement only applies to State employer tax withholding. PA local earned income tax and Local services tax will be withheld based on the municipality of your work location.

You can complete the form, print, and mail it to the Penn State University-Payroll Office at 120 S. Burrowes Street, Suite 101, State College PA 16801. Or you can complete it and email it to [email protected] . If you are going to send this through email, please do not include your Social Security number on the form as this is PII data. Instead, place your 9-digit PSU ID number in the SSN field.