Pennsylvania Act 32 Legislative Update
By Carolyn Cozart on Sep 16, 2011
Do you pay employees in Pennsylvania? If so, the Oracle/PeopleSoft Payroll for North America team would like to bring to your attention new legislation, called Pennsylvania Act 32 of 2008. Pennsylvania Act 32 provides for a restructuring of the local Earned Income Tax (EIT) collection system for Pennsylvania local governments and school districts, and was signed into law on July 2, 2008. Act 32 provides for one EIT tax collector for each county (with the exception of Allegheny County and Philadelphia). This change will reduce the number of local EIT collectors from 560 to 69. The law requires employers to withhold EIT from residents and non-residents to remit all withholdings within 30 days of the end of each quarter, or in some cases monthly. Businesses with multiple locations across the state will now be allowed to remit to the county where they are headquartered.
This Act imposes new tasks and responsibilities on Pennsylvania employers for the calculation and withholding of Pennsylvania local earned income tax. For more detailed information on this law please go to the Pennsylvania website of the Pennsylvania Department of Community and Economic Development.
Statewide implementation of Act 32 begins with wages paid on or after January 1, 2012. However, three Pennsylvania counties have announced that they will require employers to begin complying with Act 32 requirements in 2011:
- Chester County
- Lebanon County
- Wyoming County
In May 2011, PeopleSoft delivered product updates to assist employers in Chester, Lebanon and Wyoming counties. These changes are being posted in Tax Update 11-C.
My Oracle Support Document ID 1087164.1 provides complete information on the product update information for the early adopter counties (Chester, Lebanon and Wyoming). We will be versioning this document to provide additional information for the remaining counties as the details become available. If this information is applicable to your organization, please bookmark this page.