REMINDER - Each business that employs individuals at worksites in PA, including those who work from home, is REQUIRED to withhold the applicable local earned income tax from employees´ wages and remit the tax to the appropriate tax officer.

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 new employee and employee who has a change of address.

Please visit http://www.newpa.com/node/6710 for answers to questions about how Act 32:

• Affects you
• For standard forms
• For tax rates
• For PSD Codes
• For non-traditional work site issues
• For Philadelphia withholding rules that fall outside the scope of Act 32
• For Tax Officer contact information
• For questions regarding withholding and remittance of local earned income taxes, if the Address Search does not provide definitive results