Local Earned Income Tax

Act 32 will change the system of collecting Earned Income Tax (EIT) across

Pennsylvania.  It will reduce the number of state-wide tax collectors from 560 to 69

collection districts (TCD). All employers (large and small) will be required to withhold

EIT from all employees and remit the collected tax within 30 days of the end of

each quarter.

 

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IMPORTANT NOTICE FOR ALL RESIDENTS:
 

• All Earned Income Tax (EIT) will be withheld by employers and remitted to Berkeheimer Tax Administrator (the appointed Tax Officer for the Tax Collection District (TCD) on a quarterly basis.

 

• The taxes will be distributed to the employees proper place of residence, in your case Oakland Township and the Butler Area School District.

 

• ALL EMPLOYEES MUST fill out a Residence certification Form and return it to their employer to ensure that their EIT is withheld and distributed properly.

 

• Employee EIT rates will be decided by the employee’s political subdivision. A complete tax register of all EIT rates can be found at the DCED website: www.newpa.com

 

• The political subdivision code (PSD) for Oakland Township is 100108.

 

• If a change in residency occurs, employees must inform employers of their new residency.

 
IMPORTANT NOTICE TO ALL EMPLOYERS LOCATED IN OAKLAND TOWNSHIP:
 

• Berkheimer Tax Administration has been selected by the Butler County Tax Collection Committee to handle all EIT across the Tax Collection District (TCD) of Butler County.

 

• Employers are now required to obtain and have on file, a Residency Certification Form from all employees, current and new.

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• The employees EIT rate is determined by ordinance of their political subdivision.

 

• All employers are required to withhold EIT of all employees subject to tax and remit these taxes to the assigned Tax Officer.

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• Codes have been established by the Department of Community and Economic Development (DCED) that reflect the employee’s county, school district, and municipality.

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Those codes can be accessed at the DCED website: www.newpa.com.

 

• Employers will have 30 days after the end of the quarter to remit EIT to the Berkheimer.

 

• Multi-site employers may elect to pay taxes in only one Pennsylvania Tax Collection District. However, these taxes must be remitted monthly according to all instructions on the DCED website.