61 Pa. Code § 143.5 - Employer withholding
(a) An
employer who maintains an office or transacts business within a school district
shall deduct and withhold school district personal income tax from the
compensation of each employee of the employer under the following conditions:
(1) The employee is a resident individual of
the school district.
(2) The
employee provides services to the employer within the school
district.
(3) The employer is
required under section 316 of the TRC (72 P. S. §
7316) to deduct and withhold Pennsylvania
Personal Income Tax from the compensation of the employee.
(b) The school district personal income tax
required to be deducted and withheld under subsection (a) shall be deducted and
withheld for each payroll period in an amount equal to the product of the
following:
(1) The school district personal
income tax rate for the school district where the employer maintains an office
or transacts business that is in effect during the payroll period, which rate
can be found on the Department of Community and Economic Development's Local
Tax Withholding Register as established under section 351(c)-(e) of the TRC
(72 P. S. §
7351(c)-(e)),
regarding tax registers and local tax withholding registers.
(2) The compensation paid for the payroll
period.
(c) Every
employer required to deduct and withhold from compensation under subsection (a)
who has not previously registered, shall within 15 days after becoming an
employer, register with the tax collector for the school district where the
employer maintains an office or transacts business, the name and address and
other information the tax collector may require.
(d) Every employer required to deduct and
withhold from the compensation of a person under subsection (a) shall on or
before April 30, July 31, October 31 and January 31, file a return for and
remit to the tax collector for the school district where the employer maintains
an office or transacts business the amount of school district personal income
tax deducted and withheld during the preceding 3-month periods ending March 31,
June 30, September 30, and December 31, respectively. The information to be
provided on the return must include:
(1) The
name and Social Security number of each person from whose compensation
withholding was made.
(2) The
compensation subject to withholding during the preceding 3-month
period.
(3) The amount of
withholding.
(4) The school
districts imposing the school district personal income tax on the
compensation.
(5) The total
compensation of all persons from whom the employer is required to withhold
during the preceding 3-month period.
(6) The total school district personal income
tax withheld and remitted with the return.
(e) The tax collector may require any
employer who for two of the preceding four quarterly periods has failed to
deduct and withhold the proper school district personal income tax, or any part
thereof, or has failed to remit the proper amount of the school district
personal income tax, to file a return and remit the withheld school district
personal income tax monthly. In that case, the school district personal income
tax to be withheld shall be made to the tax collector on or before the last day
of the month succeeding the month for which the tax was withheld.
(f) On or before February 28, of the
succeeding year, every employer required to withhold school district personal
income tax under subsection (a) shall file the following with the tax
collector:
(1) An annual return showing:
(i) The total amount of compensation paid and
subject to withholding.
(ii) The
total amount of school district personal income tax deducted and withheld from
the compensation.
(iii) The total
amount of school district personal income tax remitted to the tax collector for
the period beginning January 1, of the current year, and ending December 31, of
the current year.
(2) A
return withholding statement for each person whose compensation was subject to
withholding during all or any part of the period beginning January 1, of the
current year, and ending December 31, of the current year, setting forth the
name, address and Social Security number, the amount of compensation paid to
the person during the period, the amount of school district personal income tax
deducted and withheld, the political subdivisions imposing the tax upon the
person and the amount of tax remitted to the tax collector. Every employer
shall furnish two copies of the individual return to the person for whom it is
filed.
(g) Every employer
who discontinues business prior to December 31, of the current year, shall
within 30 days after the discontinuance of business, file the returns and
withholding statements required under this section and remit the tax
due.
(h) An employer who willfully
or negligently fails to deduct, withhold and remit the school district personal
income tax as required under this section shall be liable for payment of the
school district personal income tax that the employer was required to withhold
to the extent that the taxes have not been recovered from the person from whom
the withholding was to be made.
(i)
Notwithstanding the provisions of this section, an employer may deduct and
withhold school district personal income tax at the most recently available
school district personal income tax rate on the Department of Community and
Economic Development's Tax Register as established under section 351(b) of the
act (53 P. S. §
6926.351(b)). Further, an
employer is not required to deduct and withhold school district personal income
tax from the compensation of a resident individual or make reports of
compensation deducted and withheld in connection with a school district
personal income tax that is not officially released on the Department of
Community and Economic Development's Local Withholding Tax Register as
prescribed in section 351 of the act.
(j) The failure or omission of an employer to
deduct, withhold and remit the school district personal income tax required
under this section does not relieve any person from the payment of the school
district personal income tax or from complying with the filing requirements of
this article.
(k) Nothing in this
section shall be construed to prohibit an employer from voluntarily deducting
and withholding school district personal income tax from the compensation of a
person who is subject to school district personal income tax but is not a
resident individual of the school district in which the employer maintains an
office or transacts business and to which the person reports to work. If an
employer voluntarily deducts and withholds school district personal income tax
from a person, the employer shall remit the tax and file the returns and
reports required under subsections (d) and (f) with the tax collector for the
school district where the person is a resident individual.
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.