PA Local Tax

Act 32 requires uniform withholding of earned income taxes (EIT) and remittance to a single local collector or Tax Officer. The Act applies to the earned income taxes levied and collected after December 31, 2011.

Under Act 32, employers are required to withhold the higher of the employee's resident earned income tax amount (rate of total resident EIT where they reside) vs. the employee's municipal non-resident earned income tax amount (rate of total non-resident EIT where they are employed).

What is required of the School District under Act 32?

Any new tax enactments, repeals or changes in rates for withholding taxes (EIT or LST) must be reported annually, on the School District Tax Information form. This form must be received in the Department of Community and Economic Development (DCED) by June 1, along with a copy of the fully executed ordinance/resolution, in order to be included in the Official EIT/LST/PIT Register (Official Register).

OR

If there are no new tax enactments, repeals or changes in rates for withholding taxes or withholding collectors (EIT or LST), the School District Tax Information form is due by June 15, or 15 days after adoption of the budget, whichever is sooner, along with a fully executed ordinance/resolution.

The following are the procedures for local tax processing: