❓ Frequently Asked Employer Questions ❓

---

Employees Who Live & Work in PA: As an employer, you must complete the Residency Certification Form for each employee in order to determine their correct tax rate.

Employees Who Live in PA, but Work Outside of PA: As an out-of-state employer, you are not required to withhold local Earned Income Tax (EIT) for a PA resident employee, however the PA resident will still be subject to and owe the "Total Resident EIT Rate" based on their home.

Employees Who Work in PA, but Live Outside of PA: You must complete the Residency Certification Form for each employee. You are required to remit Earned Income Tax as well as Local Services Tax for each worksite location.

Click here for more information about Out-of-State Employees >>

In the case of employees with temporary job assignments, the employer shall withhold and remit the following taxes:

1. Employees working for less than 90 consecutive days at a job location, the greater of the employee's resident tax or the employee's nonresident tax based on the location of the employer's permanent home office.
2. Employees working for 90 or more consecutive days at a job location, the greater of the employee's resident tax or the employee's nonresident tax based on the job location.
3. Employees working in the City of Philadelphia shall be covered under the Sterling Act.

Businesses with multiple worksite locations across the state may file and remit all local Earned Income Tax withholdings to a single local tax collector. Employers who make combined filings and remittances are required to file and remit electronically on a monthly basis.

Local Services Tax may still need to be remitted to multiple tax collectors.

If a municipality and a school district's combined Local Services Tax rate is more than $10, employers must withhold the tax based on their number of annual payroll periods and are prohibited from withholding the tax in a lump-sum payment. However, if the combined LST rate is $10 or less, it may be withheld all at once from the first paycheck of the year.