Archive for February, 2011

PA Local Earned Income Tax – Act 32: What Is It, When Is It Effective & Who Does It Affect?

February 8th, 2011 281 comments

Act 32 was enacted in 2008 with the objective of consolidating the collection of the local earned income tax (EIT) on a county-wide basis. PA (excluding Philadelphia) was streamlined from about 560 tax collectors into 69 Tax Collection Districts (TCD). Each TCD is controlled by a Tax Collection Committee (TCC). For years taxpayers and tax practitioners have been complaining about the inconsistency as to how the EIT was enforced by the tax collectors and local tax jurisdictions. Some collectors and tax jurisdictions made up their own rules and refused to follow case law. Some jurisdictions would not accept a generic EIT form or even a photocopy of their EIT return. The outcry of injustice became so loud that Act 32 was enacted to improve the collection process.

Act 32 affects all PA resident employees and every PA employer Read more…

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