Effective with tax year 2023 and forward, amounts paid or incurred by an employer of an employee for dependent care assistance under a Section 129 plan are no longer taxable for local earned income/net profits tax purposes. For additional information on the law change, please click here: Dependent Care Assistance (pa.gov)
Employers who maintain worksites in PA or employ individuals who may work from their homes are required 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.
If an employee resides in Philadelphia the employer will need to forward these withholdings to Philadelphia.
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.
Out of State Employers who have employee(s) working and living in Pennsylvania are required to withhold the local earned income tax as outlined above.
Out of State Employers who have employee(s) working outside of Pennsylvania and living in Pennsylvania may voluntarily withhold the PA Local Earned Income Tax at the resident rate. This is referred to as a Voluntary Employer Account.
If you received an Employer Return Reminder (DCEDE11REM) and do not believe you owe the tax, you can respond electronically by clicking here.
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.
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.
If setting up a Monthly account the employer must file a Notice Of Intent To File Combined Returns with the appropriate tax collector in which the employer is currently filing quarterly with; as well as the tax collector in which the employer is requesting to file combined returns with. Employers must be notified of approval prior to submitting combined monthly returns with one collector. Employers who select to file monthly are required to file and pay online using our Employer E-file Upload process. Please note only ACH Debit payments are accepted. 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.
HAB-EIT
PO Box 25132
Lehigh Valley, PA 18002
If you need information on tax rates please, please click here.
If you need to locate what jurisdiction you are residing, please click here.
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.
Quarterly Filers
Quarter | Months | Due On or Before: |
1st Quarter | January, February, March | April 30th |
2nd Quarter | April, May, June | July 30th |
3rd Quarter | July, August, September | October 30th |
4th Quarter | October, November, December | January 30th |
Monthly Filers 2024
Month | Due On or Before: |
January | March 1st |
February | March 30th |
March | April 30th |
April | May 30th |
May | June 30th |
June | July 30th |
July | August 30th |
August | September 30th |
September | October 30th |
October | November 30th |
November | December 30th |
December | January 30th |
There are 3 ways you can file your quarterly return.
Mail returns to:
Berkheimer Earned Income Tax Administrator
PO Box 25132
Lehigh Valley, PA 18002
To upload an Employer Monthly/Quarterly Return.
Choose PA Standard Format (EFW2-PA), CSV or Federal Format (with a slight modification)
Enter employer information and attach your file.
Set up a payment account by entering your banking information and securely pay online.
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
You can obtain a copy of our formats below.
Employer Quarterly Return File Formats
W-2 Annual Reconciliation File Formats
Need a form? Click here.
Mail payments to:
Berkheimer Earned Income Tax Administrator
PO Box 25132
Lehigh Valley, PA 18002
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
PO Box 25132
Lehigh Valley, PA 18002
Preview of the W-2 Annual Reconciliation Upload process
If you have additional/specific questions that are not addressed above, please click on the link to send an inquiry to our Customer Care Department.
If you have additional/specific questions that are not addressed above, please click on the link to send an inquiry to our customer care department.
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