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The Employer’s responsibility for withholding the earned income tax is based on the location of the business. If a business is located in a jurisdiction that has an earned income tax, the employer is required to withhold this tax. The employer is required to submit the withholdings to the officer that collects for that jurisdiction.
Example: If the business is located where the earned income tax is 1% for residents and 1% for non-residents, the employer would be required to withhold for all employees that work at that location. The employer is required to submit a quarterly withholding report with the following information. Social security number, name, address, gross wages & withheld tax for each employee at that location. Berkheimer in turn will process the quarterly return and forward the withholdings to the jurisdiction the employee resides in.
Philadelphia Residents
If an employee resides in Philadelphia the employer will need to forward these withholdings to Philadelphia.
Pittsburgh Residents
If an employee resides in Pittsburgh the employer will need to forward these withholdings to Pittsburgh.
Split Collections
The employer’s business is located in a jurisdiction that has 2 collectors one for the School District and one for the Municipality. The employer would need to submit a Quarterly return to both collectors.
Volunteer Employer
The business is located in a jurisdiction that has not enacted an earned income tax, but the employer has employees that reside in a jurisdiction that has enacted the earned income tax. A volunteer account can be set up for the employer to remit withheld tax for those employees |