Earned Income Tax-Employers

Every employer having an office, factory, workshop, branch, warehouse or other place of business that employs one or more employees within the Centre County Tax Collection District is required to withhold the Local Earned Income Tax according to Act 32 of 2008.

Employer Responsibilities under Act 32 of 2008 include, but are not limited to the following:

  • Register with the Tax Office within 15 days of becoming an employer. Any changes that occur within the business, i.e. change of address, need to be reported to the Tax Officer
  • Maintain a Certificate of Residency for every new hire and/or employee with a name/address change
  • Withhold the Local Earned Income Tax for each employee at the greater of the employee’s resident tax rate or the employee’s worksite non-resident tax rate
  • Include on the quarterly/monthly tax return the resident Political Subdivision (PSD) Code and the worksite PSD Code for each employee (in addition to the information previously required)
  • Requires employers who fail to deduct the proper income tax or any part of the tax during two or more of the preceding quarters to file and remit the income taxes on a monthly basis (due 30 days after the end of the prior month)
  • File a Notice of Intention to File Combined return at least one month prior to filing the first combined return. Filing a combined return is an option available to employers with more than one place of employment in multiple Tax Collection Districts. Employers who elect to file combined returns must electronically file and remit the tax due to the Tax Officer on a monthly basis (due 30 days after the end of the prior month)
  • Annual Reconciliation due on or before February 28 for the prior year beginning January 1 and ending December 31
  • File a Final Return within 30 days after a business discontinues operating within a Tax Collection District

Was this page helpful for you? Yes No