You may have previously heard that the City of Scranton, located in Lackawanna County, was enacting an Act 205 tax on non-residents, in the amount of 0.75% that was to take effect with the fourth quarter of 2014. This tax was stricken by the court on September 30, 2014. Therefore, please do not withhold the Act 205 tax from your non-resident employees. The resident rate for employees is 3.4% and the non-resident rate will remain at 1.0%.
If you have already withheld the additional tax from your employee’s paycheck, please refund it to them as soon as possible.
For an immediate response to any question or if you need additional information, please submit an electronic inquiry via our website or contact our Customer Care Department at 610-599-3139. We will be happy to assist you.