- Act 32 Checklist
- The PICPA Act 32 Tax Collection Task Force
The Act 32 Tax Collection Task Force was established to facilitate discussion between the PICPA members serving as County Tax Collection Committee (TCC) delegates across the state. The goal of the task force is to provide necessary resources to implement Act 32 of 2008 to streamline and reform Pennsylvania’s local earned income tax collection system.
Top Questions and Answers Related to EIT
Q: What is the proper withholding rate?
A: The proper rate to withhold is the higher of the nonresident rate for the jurisdiction in which the employee’s worksite is located or the resident rate for the jurisdiction where the employee resides.
Q: How do you handle situations where the worksite nonresident rate exceeds the employee’s resident rate?
A: Under Act 32, which is the same as Act 511 in this regard, if the nonresident worksite rate is higher than the employee’s resident rate, the difference between the rates stays in the worksite jurisdiction.
Q:What are the withholding considerations when employees work in temporary locations, such as a construction job?
A: There are three considerations when it comes to answering this question. First, if the employee is sent to a worksite in Philadelphia, the Philadelphia wage tax is withheld instead of a local tax. Second, if the employee is sent to a worksite with a temporary trailer, and the employee takes orders from the trailer, the employer location is the worksite. Third, if the employee is sent to a worksite without a temporary trailer or if the employee still takes orders from the home office when there is a trailer, the employer location depends upon the length of the assignment. If the assignment is less than a continuous three-month period, the home office remains the employer location. If the assignment is over three months, the worksite becomes the employer location.