NOTICE TO CAPITAL TAX BUREAU EMPLOYERS   The Capital Tax Bureau has received numerous telephone calls from employers who have received a notice, “2010 CHANGES FOR REMITTING EARNED INCOME TAX” from the Lancaster County Tax Collection Bureau (copy on reverse side). The notice apparently misleads employers to believe that LCTCB is the designated collector for Pennsylvania Local Income Tax throughout the Commonwealth.  

THIS IS INCORRECT.  

Lancaster County Tax Collection Bureau has no legal authority to state, “Employers can now submit ALL of their Pennsylvania Local Tax to LCTCB.” Until further notice, employers are required to continue remitting earned income tax to the local tax collector, regardless of the number of facilities operated by the employer  

In fact, employers outside the LCTCB’s taxing jurisdiction who remit their Pennsylvania Local Income Tax to LCTCB may find themselves “delinquent” to their local tax collector and in violation of the Local Tax Enabling Act (Act 511 of 1965) and the local ordinances/resolutions of municipalities and school districts outside of LCTCB’s taxing jurisdiction. These violations usually result in interest, penalties, collection fees and fines being levied against the delinquent employer.  

PLEASE be sure to check the EARNED INCOME TAX REGISTER on the Pennsylvania Department of Community and Economic Development’s website (http://munstatspa.dced.state.pa.us/Registers.aspx?H=1) to ensure that you are remitting the Pennsylvania Local Income Tax withheld from your employees to the proper collector.   

In general, the law requires that you must withhold the local income tax from your employees and remit it to the Tax Office/taxing jurisdiction where those employees are currently employed. For employers who have multiple locations throughout the Commonwealth, you must continue to make multiple remittances to those tax offices where your facilities are located.  

ACT 32 of 2008, when it becomes effective on January 1, 2012, will allow multiple location employers to consolidate their Pennsylvania Local Income Tax remittances to one tax office. There are several conditions that multi-location employers must meet to take advantage of ACT 32’s consolidated local income tax remittances (ACT 32, Section 512, Paragraph 5):  

1.      The employer must have more than one place of employment in more than one tax collection district.

2.      Within 30 days of the end of each month the employer must file the employee income and tax withholding detail and make payment of the tax withheld from all employees in all locations to the tax officer where the employer’s payroll operations are located OR as determined by the Pennsylvania Department of Community and Economic Development.

3.      The return and income taxes deducted must be filed and paid electronically.

4.      The employer must file a “notice of intention to file combined returns and make combined payments” with the tax officers for each place of employment at least one month before filing its first combined return or making its first combined payment.  

Please visit www.captax.com or www.newpa.com for additional information regarding ACT 32 of 2008.