Must we also register and remit local tax withholdings to the school district? The Act requires employers to register only with school districts who have a different collector than the municipality.
Are there any exceptions for withholding local taxes for the municipality/school district? Yes, Philadelphia and Pittsburgh have exceptions. Philadelphia falls under the Sterling Act and requires employers to withhold and remit earned income taxes for all their employees who reside in Philadelphia even if they are employed at a site outside of Philadelphia. Pittsburgh City School District has a similar requirement. We have heard that Act 7 requires employers to deduct the tax weekly. Is this true?If a municipality and school district’s combined local services tax rate is more than $10, employers must withhold the tax based on their number of annual payroll periods and are prohibited from withholding the tax in a lump-sum payment. Therefore, if an employer pays its employees weekly, the tax must be withheld weekly. How often are employers required to submit tax revenue to the municipal tax collector?
Related Questions
- Must we also register and remit local tax withholdings to the school district? The Act requires employers to register only with school districts who have a different collector than the municipality.
- Can I withhold a flat 1/2 percent for my employee in the Reynoldsburg school district just like a local tax?
- Where do I find the amount my local school district will receive in IDEA Recovery Act funds?
