Compiled by Robert W. Ditmer,
CPP
In the legend of Hercules, Hercules had to perform a number of labors. In the second labor he was faced with the task of defeating the Hydra, a dragon with nine heads, one of which was immortal. If he cut off one of the heads, it immediately grew back two heads, thus multiplying the difficulty of his task. Well, to many payroll professionals, dealing with the Pennsylvania Local Earned Income Tax is like dealing with the Hydra. It has so many heads that seem to multiply with each new employee.
But dealing with the Earned Income Tax (EIT) does not have to be like fighting an uncontrollable dragon. It is possible to tame the dragon and gain control. In this guide we will try to clear away the confusion as well as provide practical direction for administering the withholding and remitting of the local EIT. And the material in this guide has national scope because the the Pennsylvania Earned Income Tax affects every employer who operates in or has employees working in Pennsylvania
What Is the Earned Income Tax?
What Income Is Subject to the Earned Income Tax?
Who Is Subject to the Earned Income Tax?
Who Collects the Local Earned Income Tax?
What Are the Employer's Obligations?
What Are the Exceptions?
A Practical Guide to the Procedures for Complying With the EIT Regulations
What If a Business Fails to Register and Withhold Local Pennsylvania Taxes?
How Can Employers Assist Employees Who Are Liable for the Tax But Who Are Not Subject to Withholding of the Tax?
What Additional Resources are Available? Conclusion.
Addendum - A Brief Word on the Emergency and Municipal Services Tax (EMST)
* Robert W. Ditmer is a Certified Payroll Professional with over 25 years experience in accounting, taxation, and payroll. As a resident of Philadelphia, Pennsylvania, he operated a part-time financial service providing accounting and tax preparation services for both individuals and businesses, including state and local taxes in Pennsylvania, New Jersey, and Delaware. For the past four years he has written articles for publication and spoken at conferences on the subjects of the Pennsylvania Earned Income Tax, taxable fringe benefits, and the impact of the Fair Labor Standards Act on payroll issues. He has been a contributor to Symmetry Software’s website www.payroll-taxes.com, and he can be contacted by e-mail at robertwditmer@yahoo.com
