The PA Department of Revenue has released a reminder to taxpayers that the Act 32 – Local Earned Income Tax Withholding Reform Requirements, will become effective statewide on January 1, 2012. We have reprinted below the PA reminder announcement dated December 28, 2011.
Dear Taxpayer,
Act 32 – Local Earned
Income Tax Withholding Reform Becomes Effective Statewide
January 1, 2012
REMINDER – Each business that employs individuals at worksites in PA, including
those who work from home, is REQUIRED to withhold the applicable local earned
income tax from employees´ wages and remit the tax to the appropriate tax
officer.
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 non-resident EIT where they are employed).
Employers are required to obtain information in the Residency
Certification Form for every new employee and employee who has a change
of address.
Please visit http://www.newpa.com/node/6710 for answers to questions about
how Act 32:
- Affects you
- For standard forms
- For tax rates
- For PSD Codes
- For non-traditional work site issues
- For Philadelphia withholding rules that fall outside the scope of Act 32
- For Tax Officer contact information
- For questions regarding withholding and remittance of local earned income taxes, if the Address Search does not provide definitive results
