Non-Resident Employees & Out-of-State Employers

Non-Resident Employees

Employees who work out-of-state will be subject to the Non-Resident EIT Rate, as well as Local Services Tax (LST), based on your worksite municipality. As an employer, you must complete the Residency Certification Form for each employee and make remittances to the Bureau for all worksite locations.

For an employee that lives out-of-state, the "Resident PSD Code" will be 880000, and the "Total Resident EIT Rate" will be 0%. However, the out-of-state resident employees will still be subject to and owe EIT and LST taxed at the work location's "Work Location Non-Resident EIT Rate".

Out-of-State Employers

Non-Resident Employees

Employers who have no physical location within the Commonwealth, but who may employ Pennsylvania residents as facilities outside PA are not subject to ACT 32's requirements. These employers are encouraged to withhold the PA Local Income Tax from their PA resident employees and make remittance of the tax withheld from all PA employees to one Tax Officer on a quarterly basis.

Out of state employers are not required to make and file PA local income tax returns or make remittances of the tax to multiple PA Tax Officers.

Information about Maryland Residents

PA Local Tax Withholding Not Required for Maryland Residents

In 1981, a legal settlement was reached between certain York Adams Tax Bureau member taxing authorities and the State of Maryland concerning the collection of earned income tax from Maryland residents who work in these jurisdictions. This agreement allows residents of Maryland who are employed within this area to file and pay state/local tax only to the taxing authority where they reside.

In April 2005, the Board of Directors approved the recommendation that the member municipalities adopt an ordinance to include non-resident earned income at the source, excluding Maryland residents.

Therefore it is the position of this Bureau that Pennsylvania employers within the York Adams Tax Bureau jurisdiction are NOT required to withhold the local earned income tax from Maryland residents who work in York or Adams counties. If tax is withheld, those employees shall be entitled to a full refund.

For more information on this legal settlement, click here.

Employees Who Work and/or Live in Philadelphia

Philadelphia Residents & Employees

Employees Who Live and Work in Philadelphia: Employers are required to withhold the Philadelphia resident rate for employees who live and work in Philadelphia.

Employees Who Work in Philadelphia, but Live Outside of Philadelphia: Employers are required to withhold the Philadelphia non-resident rate for employees who work in Philadelphia, but live outside of Philadelphia.

Employees Who Live in Philadelphia, but Work Outside of Philadelphia: Act 32 does not apply. Employers are required to withhold the Philadelphia resident rate for residents, but not those who work outside of Philadelphia.

Philadelphia Department of Revenue

Non-Resident Employees & Out-of-State Employers

Non-Resident Employees

Non-Resident Employees

Non-Resident Employees

Out-of-State Employers

Non-Resident Employees

Non-Resident Employees

Information about Maryland Residents

PA Local Tax Withholding Not Required for Maryland Residents

Employees Who Work and/or Live in Philadelphia

Philadelphia Residents & Employees

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