Exceptions to Withholding Requirements

The following are exceptions to the LST employer withholding requirements where the total LST is $52.00:

Multiple Employers


Do not withhold the School District ($5.00) or Municipal ($47.00) LST if you have received a properly executed Employee Statement to Secondary Employers notifying you that 1) the LST has been withheld by another employer, 2) the LST is being withheld by another employer who is the employee’s PRINCIPAL employer, or 3) the employee is also self-employed and is remitting the LST to the tax office on his/her behalf.

Military Service Exemption


Do not withhold the School District ($5.00) or Municipal ($47.00) LST if you have received a properly executed Annual Exemption Request Form for which exemption is based on military service.

Clergy Exemption


Do not withhold the School District ($5.00) or Municipal ($47.00) LST if you have received a properly executed Annual Exemption Request Form for which exemption is attributed to clergy based employment.

Income Based Exemption


Do not withhold the Municipal ($47.00) LST if you have received a properly executed Annual Exemption Request Form** indicating the employee expects to receive less than $12,000 in total earned income and net profits from employment within the worksite municipality. The income exemption level for the Bald Eagle Area School District is $1,500. Consequently, employers are required to withhold the School District LST ($5.00) provided an employee’s total income is equal to or greater than $1,500.The income exemption level for the Bellefonte Area School District is $1,000. Consequently, employers are required to withhold the School District LST ($5.00) provided an employee’s total income is equal to or greater than $1,000. Please note, the State College Area School District does not have an income exemption.

**The Annual Exemption Request Form must include documentation that the employee earned less than $12,000 within the same worksite municipality during the prior year.**

For employers which are located within a district with a total LST of $10.00, please click here to view a chart that will assist you with determining the correct amount of LST to deduct from the employee(s).

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