Frequently Asked Questions

 

What is the employer’s responsibility?

Employers who maintain worksites in PA or employ individuals who may work from their homes arerequired to withhold applicable earned income tax from those employees.

Under Act 32, employers are required to withhold the higher of the employee’s resident earned income tax amount (rate of total resident EIT where they reside) vs. the employee’s municipal non-resident earned income tax amount (rate of non-resident EIT where they are employed). Employers are required to obtain information in the Residency Certification Form for every employee.

Philadelphia Residents

If an employee resides in Philadelphia the employer will need to forward these withholdings to Philadelphia.

Who Must Withhold The Tax?

All employers located in Pennsylvania are required to withhold the local earned income tax for their employees. If the employer is located in a jurisdiction that has not enacted the tax, they must withhold for any employees residing in a jurisdiction that has. If the employer and the employee(s) are located in a jurisdiction that has enacted the tax, the employer must withhold either the rate of the employee’s resident jurisdiction or the non-resident rate of the employer’s jurisdiction; whichever is higher.

Employers located outside of Pennsylvania, may voluntarily withhold the PA Local Earned Income Tax for any employees residing in Pennsylvania and have a resident tax enacted. Out of state employers are not required to withhold the PA Local Earned Income Tax.

What kind of account should I set up?

An employer can set up an account for Quarterly filing or Monthly filing.

Quarterly filing

Within 30 days after the end of each quarter, the employer must remit withheld taxes and employee information to the tax collector/officer of each worksite-location.

Monthly Filing

Within 30 days after the end of each month, the employer must electronically remit withheld taxes and employee information to a single tax collector/officer where the PA corporate headquarters are located. However if the corporate headquarters are located outside the state, the company may remit withheld taxes from all employees statewide to a tax collection district of their choice upon agreement with that tax collector/officer. The electronic format for transfer of funds and information must be obtained from the applicable single tax collector/officer.

If setting up a Monthly account the employer must file a Notice Of Intent To File Combined Returns and make combined payments with the tax officer for each place of employment at least one month before filing its first combined return or making its first combined payment. Employers who select to file monthly are required to file and pay online using our Employer E-file Upload process. All locations can be included and submitted in one file, where each location in which you are filing for is indicated by a separate employer record for each. The employer records should contain the same corporate address in each record, but the actual PSD number in which each business is located. For more information regarding file formats or e-file, click here or see below.

Your Notice of Intention must contain the following information:

  • Your company name
  • FEIN
  • A contact person with phone number and email address
  • The TCD you will be filing with and PSD Code of your corporate office
  • A list of all jurisdictions included in your combined filing along with any Berkheimer Account Numbers, if applicable

Please mail all Notice Of Intent To File Combined Returns for Berkheimer to:

HAB-EIT
PO Box 25132
Lehigh Valley, PA 18002

Volunteer Account

The business is located out of state, but the employee resides 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.

How can an employer set up an account?

The employer can set up an account 3 ways.

  1. Electronically via our Employer Registration Form
  2. Download Employer Registration Form & Fax (610) 588-5765 Attn: TAXROLL
  3. Call (610) 599-3139

The information need to set up an account is:

  • Company name
  • Physical address of business location
  • Mailing address if different
  • PSD in which business is located
  • Phone #
  • Fax #
  • E-mail address
  • Federal ID
Where can I locate the tax rate for a specific jurisdiction?

If you need information on Local Service Tax rates please go to the DCED Website 

** Please note this is not a Berkheimer website and we are not responsible for any such third party content that may be accessed via this link.**

How can I find out what Municipality my business is located in?

If you need to locate what jurisdiction you are residing in please go to the DCED Website 

** Please note this is not a Berkheimer website and we are not responsible for any such third party content that may be accessed via this link.**

Where can I find the PSD codes that are required?

A list of all PSD codes can be found on the DCED’s website. Act 32 requires that employers utilize these codes on all withholding reports as of January 1, 2012.

When are the returns due?

Quarterly Filers

Quarter Months Due On or Before:
1st Quarter January, February, March April 30th
2nd Quarter April, May, June July 31st
3rd Quarter July, August, September October 31st
4th Quarter October, November, December January 31st

Monthly Filers 2014

Month Due On or Before:
January March 3rd
February March 31st
March April 30th
April May 30th
May June 30th
June July 30th
July September 1st
August September 30th
September October 30th
October December 1st
November December 30th
December January 30th
How can I file a return?

There are 3 ways you can file your quarterly return.

1.Electronic Upload – You can use our format and upload your file using our online service (Monthly Filers are required to file with this method)

2. Data entry – You can file using our online service

3. You can download an Employer Quarterly form from our website by clicking here

Mail returns to:

Berkheimer Earned Income Tax Administrator
PO Box 25132
Lehigh Valley, PA 18002

How do I file online?
  • You will need to create an online account here
  • You will need an e-mail address and a password
  • Each Month/quarter you will be able to file online and pay online.
  • You will also be able to view information on your previous upload.
  • You can file for multiple employer accounts using one online account.
  • You must pay at the time of filing via an ACH Debit Transaction.

 

What is the difference between the e-file choices: Report Upload and Data Entry Filing Online?

To upload an Employer Monthly/Quarterly Return.

  1. 1. Choose PA Standard Format (EFW2-PA), CSV or Federal Format (with a slight modification)
  2. Enter employer information and attach your file.
  3. Set up a payment account by entering your banking information and securely pay online.
  4. Done.

Preview of the Employer Quarterly Return Upload process (PDF) 

To file data entry online.

1. You will need your Berkheimer account number and your Federal Tax ID (EIN) number.

2. On the efile page, enter your account number and your Federal Tax ID number.

3. Follow the step-by-step procedures

4. Enter your banking information to securely pay online

5. Done.

Preview of the Employer Quarterly Return E-File (Data Entry) process

What are the file formats?

You can obtain a copy of our formats below.

How should payments be submitted?
  1. You can mail your payment with your E1 form to the address listed below.
  2. If you are filing on line you will be required to pay on line at no extra costs.

Mail payments to:

Berkheimer Earned Income Tax Administrator
PO Box 25132
Lehigh Valley, PA 18002

How should an amended return be submitted?

An amended return needs to be submitted in writing and include the reason for the amended return, previous payment information and amended information.

Mail amended returns to:

Berkheimer Earned Income Tax Administrator
PO Box 25132
Lehigh Valley, PA 18002

How do I upload my W-2 Annual Reconciliation?
  1. Choose PA Standard Format (EFW2-PA), CSV,Federal Format (with a slight modification) or SSW2 Format
  2. Enter employer information and attach your file. Note: You will need you’re Berkheimer account number and your Federal Tax ID (EIN) number.

Preview of the W-2 Annual Reconciliation Upload process

If you have any questions, you can call (610) 599-3139 or Contact Us