Local wage tax changes for 2012….

CHANGES ARE COMING for employer reporting of local earned income tax. Effective January 1, 2012 every employer in Pennsylvania will be required to withhold local earned income tax from all employees.  In order to prepare for the change, employers are encouraged to have each employee complete a Residency Certification Form now.  The form is available on the web at
under “Get Local Gov Support”, then “Tax Information”, then “DCED’s Act 32 EIT Collection System”.  In order to complete the form, the employee must provide the municipality and county where he/she resides and the municipality and county where he/she is employed.  The employee must also provide the PSD Code and resident earned income tax rate for his/her place of residence and the PSD Code and non-resident earned income tax rate for his/her place of
employment.  The PSD Codes and tax rates are available online at under “Get Local Gov Support”, then “Municipal Statistics”.  The top section of the Municipal Statistics page has a link [“Political Subdivision (PSD) Codes List”] to a list of all of the codes.  The second section on the page has a link [“EIT/PIT/LST Tax Registers”] to a listing of the resident and
non-resident tax rates for each locality in Pennsylvania.  This change will no doubt cause some degree of confusion and we would encourage you to contact us if you have any questions.


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