Earned Income Tax (Act 32)

Pennsylvania Act 32 changes a business' role in collecting earned income taxes. Beginning January 1, 2012, all Pennsylvania employers (excluding those in Philadelphia) must withhold the local earned income tax as part of their payroll obligation.

Act 32 streamlined the collection of earned income tax down to 69 new countrywide tax collection districts, each with one consolidated collector. Keystone Collections Group was selected the tax collector for the Allegheny County North Tax Collection District, of which McCandless is a part.

Keystone explains the changes in a two-part video series. Part One explains the changes mandated by Act 32, particularly the new mandatory withholding requirements for employers; part two is an introduction to the e-file Business Portal, an easy alternative to paper filing in Keystone's Online utility, here.