Pennsylvania Act 32

Act 32 is a law that reforms and standardizes the local earned income tax system. The appointment of collection responsibility falls on countywide committees made up of representatives from local municipalities and school districts. The committees established tax collection districts and elected tax officers to collect the Earned Income Tax (EIT).

Act 32 requires uniform withholding of earned income taxes and remittance to a single local collector or Tax Officer. The Act applies to the earned income taxes levied and collected after December 31, 2011.

Employers must begin to withhold the local EIT from employees on January 1, 2012. Appointed tax officers start collecting the EIT on January 1, 2012, unless the tax collection district has opted for early implementation.

Act 32 Procedure Manual

Residency Certification Form (Both PSD Codes MUST be reported to the Tax Collector)

Employer Registration for Local Earned Income Tax Withholding

Employer’s Quarterly Earned Income Tax Return

W2-R Annual Reconciliation of Earned Income Tax Withheld From Wages

Taxpayer’s Annual Local Earned Income Tax Return

Taxpayer’s Quarterly Estimated Earned Income Tax

PSD Codes

Local Earned Income Tax FAQs

More info

M. Spik

Editor
25 years of experience managing tax, accounting, payroll, and employment-related information portals. Editor of Accounting Portal since 2011.
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