Pennsylvania local income tax changes: compliance under the latest rules
Ernst & Young LLP offers information and services when you need them Pennsylvania Act 32 of 2008 (Act 32) significantly changed the earned income tax (EIT) withholding requirements. These changes generally took effect on January 1, 2012.
The changes under Act 32 affect withholding, remittance and reporting of the EIT, and will continue to challenge employers for months and years to come. With efficiency in the state's local income tax collection system that is the result of Act 32, enforcement efforts are likely to also improve, causing employers to more closely track the resident and work locations of their Pennsylvania employees. In fact, the Department of Community and Development recently stated in its Act 32 of 2008 Policy and Procedure that employers are strongly encouraged to obtain the new Residency Certification Form from employees each year.
To assist you in your compliance efforts, here are several useful documents that you can access from Ernst & Young’s PA Act 32 content library:
For assistance in obtaining portable electronic files of the required employee Pennsylvania local tax data and in preparing and distributing your employees’ EIT Residency Certification Form, please contact our dedicated Pennsylvania Local Services Team at eypa.localservices@ey.com.
