ACT 32 is a Pennsylvania law that standardizes the local earned income tax system. It consolidates the process by creating new countywide tax collection districts, standardizing forms, and mandating employer withholding statewide in 2012.
The applicable tax rate(s) are located on the DCED Municipal Statistics website at:
http://munstats.pa.gov/Public/FindLocalTax.aspx
Remember, you must withhold the higher of the employee's resident tax (where the employee lives) or the employee's non-resident tax (where the employee works). Non-resident tax will only apply to individuals who do not pay the earned income tax where they reside {i.e. - they are out-of-state residents or they live in a PA municipality that does not levy the earned income tax.}
Once you have determined the municipality for your employees the following link will return the PSD code and resident tax rate.
http://munstats.pa.gov/Reports/ReportInformation2.aspx?report=EitWithCollector_Dyn_Excel&type=R
our detail must include your employee name, address, SSN, wage, tax, resident PSD, and work PSD. Files will not be rejected for missing resident PSD codes; however, the work PSD code MUST be included.
he Pennsylvania Department of Community and Economic Development (DCED) offers information on ACT 32 at:
http://dced.pa.gov/local-government/local-income-tax-information/#.WFLlZP4zXAW
Starting in 2012, every PA employer must require every new employee to complete a Certificate of Residency form. An employer shall require any employee who changes his or her address to complete a new Certificate of Residency form. The forms should be retained by the employer; not filed to the Blair County Tax Collection Bureau.
In the event of a discrepancy please use the information provided by your employee on the Certificate of Residency.
A business with employment locations in more than one tax collection district may file and pay the total amount of income taxes withheld from employees in all work locations to the tax collector for the district where the employer's payroll operations is located. The employer MUST file monthly and MUST report and pay withholdings electronically. The employer must file a notice of intention to file combined returns and make combined payments with the tax collectors for each place of employment at least one month before filing its first combined return.
Filings are quarterly, and are due 30 days following the end of each calendar quarter.
If you have chosen a combined collector, filings are due monthly and must be electronic. Monthly filings are due within 30 days of the end of each month.
The annual reconciliation is due by the end of February.
No. Electronic filings should not be duplicated with a paper filing.
The easiest way to submit your filing is electronically through PA Lite.
For Employers: Fill out the Online Filing Questionnaire and either fax or email it to us and our staff will set up the account for you and contact you with your login information.
This information is required in order to receive a temporary account password for the online filing system. Once the website is accessed it is highly recommended that you change the assigned password to something unique to the user.
For Individuals: You can create an account and complete your annual tax return OR submit a quarterly estimated payment.
ACH Debit payments are accepted through PA Lite. These use information from your bank and can withdraw funds directly from a checking or savings account.
The resident PSD code for an out of state employee is 880000. Employers must withhold and report the appropriate non-resident tax, with the exception of Maryland employees. The Blair County Tax Collection Bureau will not require local earned income tax to be withheld from Maryland residents. Those employees would be entitled to a refund if tax is withheld.
Yes. Please complete the online filing questionnaire to register. Go to our For Employers page for more information.
The tax should be withheld at the correct dates based on the dates of the move. When reporting the address at the end of a quarter the new address should be listed.
If filed electronically, paper W2s are not required. If you file paper returns, you are required to include W2 copies with your annual reconciliation.
Additionally, employers with more than 250 employees are required to submit their year-end file electronically.
ACT 18 of 2018 requires work location and employer 2 digit code where tax was remitted to appear in box 20 of the W-2. Blair County's code is 07. Example: (070101-07)
All tax from employees working or living in the City of Philadelphia should be filed with the Philadelphia Department of Revenue per ACT 48 of 1994.
Please contact our office with any questions.
Via email to: info@blairtax.org
Phone: (814) 317-5335
Fax: (814) 317-5255
Copyright © 2023 Blair County Tax Collection Bureau - All Rights Reserved.
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