As you know, many townships have two different taxes: Earned Income Tax [EIT – 1% or more per pay] and Local Services Tax [LST – $52 per year]. Until 2011, there were multiple tax collectors [Berkheimer, Keystone, Central Tax, etc] in each county.
With PA Act 32 amending the Local Tax Enabling Act, all PA counties (except Phila) were required to hire ONE tax collector for the entire county and begin withholding EIT at the higher rate of where the employee lives vs. where the employer is located effective January, 2012.
What do you need to do?
Click on the links below for forms / information / links.
Have every Employee complete the Cert of Residency. The employee’s resident township name is mandatory. Make this part of your New Hire kit.
Click here for Township Lookup
Click here for the required PSD CODES required on the form.
Employers should maintain copies of these forms to provide to the taxing authority upon request. Premier does NOT need copies ~ only the name of the township for each employee. Notify Premier of the employee’s township.
Employees will now pay the higher EIT rate of the resident rate of the Employee’s residence vs. the non-resident rate of the
Employer’s location. Let your employee know if their EIT rate will increase.
Keystone Employer Help Line: 1-888-328-0558; Berkheimer: 610-599-3139.
More information on Act 32 can be found at the following websites: