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Act 32Employer, Are You Ready?
Kathy Johnson, PRSBAPennridge School District
March 16, 2011
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Beyond the TCCBy-laws completedAuditor’s namedSolicitor namedCollector namedReorganization completedBudget passed for 2011Waiting…Act-32-Countywide-Tax-Collection-Timetable.pdf
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Next StepsDistrict as an employer
What do we need to do to get readyEmployee Communication
District as part of the tax collection districtCommunicate with your employers
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Act 32 OverviewCounty-wide collection system effective
January 2, 2012Some counties have chosen to implement the
county-wide collection system prior to 2012Employers required to register with collectorEmployers required to have employees
complete DCED residence formEmployers required to deduct the greater of
the rate where the employee lives or the “non-resident” rate associated with the place of employment.
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Employer RegistrationEmployers within the Tax Collection District
are required to register with the collectorMore than one employeeWages or compensation paidHousehold help excluded
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Employer CommunicationsWork with your EIT collector to identify
employers within your TCDSend notification of changes by mailWork with municipalities to co-sponsor
information sessions within the TCD Pennridge Seminar Ad.pdf
Prepare press release Post to District and Municipal websites Send to daily and weekly newspapers
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Employee Residence FormEvery employee required to complete
School District employees as wellOut of State employees
Withhold at non-resident rate if applicable
Form is an addendum to the Federal Employee's Withholding Allowance Certificate (Form W-4). Requires any employee who changes his or her
address to complete a new Certificate of Residency form.
Residency Forms.pdfpsd_codes_-_12-15-10.xls
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Employee CommunicationPre-fill Employer Section of the formPrepare a brief explanation of the changes
Non-resident taxWhy the form must be completed by everyone;
even long-term employees Back-to-school
Benefits fair or in-service day New hires
Employee Portal/website
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What Rate to WithholdFor information on obtaining the
appropriate Municipality (City, Borough, Township), PSD CODES and EIT (Earned Income Tax) RATES, refer to the Pennsylvania Department of Community & Economic Development website:
www.newPA.comSelect Get Local Gov Support,
>Municipal StatisticsMunicipal Tax Rate Summary.pdfpsd_codes_-_12-15-10.xls
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When to RemitNo later than 30 days after the end of each
calendar quarterMonthly – under certain circumstances
Requires electronic filingAnnually Form ER-1
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How to RemitBeginning in 2012, a business with employment locations in more than one tax collection district may file and pay the total amount of income taxes withheld from employees in all work locations to the tax collector for the district where the employer‘s payroll operations is located.
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Combined PaymentsOne CollectorIf an employer chooses to file in one district for
multiple workplace locations, the employer must file monthly rather than quarterly, and must report and pay withholdings electronically.
Employer must file a notice of intention to file combined returns and make combined payments with the tax collectors for each place of employment at least one month before filing the first combined return.
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Payroll SystemsEmployers who will be filing e-returns will
need to be sure their payroll systems can accommodate the PSD codes for reporting
EIT must be reported on employee’s W2 form at the end of the year
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Communication PlanIdentify your audience
EmployersEmployees
Determine your messageImportant factsTimelineFAQ’sContact Information
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Communication PlanContinuedPartner with municipalities
Build relationshipsContact your tax collectorDeliver your message
School District websiteTax collector websiteMunicipalities website
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SummaryA well planned and executed communication
plan may enhance EIT revenueAct 32 for all counties in effect January 1,
2012Are you ready?