PRINTER'S NO. 3409
No. 2485 Session of 1990
INTRODUCED BY EVANS, APRIL 24, 1990
REFERRED TO COMMITTEE ON URBAN AFFAIRS, APRIL 24, 1990
AN ACT
1 Providing for the collection by employers, regardless of
2 domicile, of taxes imposed by cities of the first class on
3 any salary, wage, commission or other compensation due to
4 employees; imposing liability for the payment of such taxes;
5 and providing for penalties.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Short title.
9 This act shall be known and may be cited as the First Class
10 City Optional Sales Tax Act.
11 Section 2. Collection of tax at source.
12 (a) Employers doing business in city.--Employers, regardless
13 of domicile, doing business or having a place of business or
14 having employees working within a city of the first class will
15 be subject to and governed by such ordinances and regulations
16 which have been heretofore or hereafter enacted for collection
17 of tax within the geographical limits of the city of the first
18 class.
19 (b) Other employers.--Employers doing business or having a
1 place of business within this Commonwealth but not in a city of
2 the first class shall be bound by the following:
3 (1) Every employer having a place of business within
4 this Commonwealth who employs one or more persons who are
5 residents of a city of the first class shall, within 15 days
6 after becoming an employer, register with the income tax
7 officer of a city of the first class the employer's name and
8 address and such other information as the officer may
9 require.
10 (2) Every employer having a place of business within
11 this Commonwealth who employs one or more persons who are
12 residents of a city of the first class shall deduct, at the
13 time of payment thereof, the tax imposed by the city of the
14 first class on any salary, wage, commission or other
15 compensation due to the employee.
16 (3) Every employer deducting any tax imposed under this
17 section shall, on or before April 30 of the current year,
18 July 31 of the current year, October 31 of the current year
19 and January 31 of the succeeding year, file a return and pay
20 to the officer the amount of taxes deducted during the
21 preceding three-month periods ending March 31 of the current
22 year, June 30 of the current year, September 30 of the
23 current year and December 31 of the current year,
24 respectively.
25 (4) Each return, unless otherwise agreed upon between
26 the officer and employer, shall show all of the following:
27 (i) The name and Social Security number of each
28 employee.
29 (ii) The earned income of each employee during the
30 preceding three-month period.
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1 (iii) The tax deducted from the income under
2 paragraph (2).
3 (5) Any employer who for two of the preceding four
4 quarterly periods has failed to deduct the proper tax, or any
5 part thereof, or has failed to pay over the proper amount of
6 tax to the taxing authority, may be required by the officer
7 to file his return and pay the tax monthly. In such cases,
8 payments of tax shall be made to the officer on or before the
9 last day of the month succeeding the month for which the tax
10 was withheld.
11 (6) On or before February 28 of the succeeding year,
12 every employer shall file with the officer:
13 (i) An annual return showing the total amount of
14 earned income paid, the total amount of tax deducted and
15 the total amount of tax paid to the officer for the
16 period beginning January 1 of the current year and ending
17 December 31 of the current year.
18 (ii) A return withholding statement for each
19 employee employed during all or any part of the period
20 beginning January 1 of the current year and ending
21 December 31 of the current year, setting forth the
22 employee's name, address and Social Security number; the
23 amount of earned income paid to such employee during such
24 period; the amount of tax deducted; and the amount of tax
25 paid to the officer. Every employer shall furnish two
26 copies of the individual return to the employee for whom
27 it is filed.
28 (7) Every employer who discontinues business prior to
29 December 31 of the current year shall, within 30 days after
30 the discontinuance of business, file the returns and
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1 withholding statements required and pay the tax due.
2 (8) Every employer who willfully or negligently fails or
3 omits to make the deductions required by this section shall
4 be liable for payment of the taxes which the employer was
5 required to withhold to the extent that such taxes have not
6 been recovered from the employee.
7 (9) The failure or omission of any employer to make the
8 deductions required by this section shall not relieve any
9 employee from the payment of the tax or from complying with
10 the requirements of the ordinance or resolution relating to
11 the filing of declarations and returns.
12 (10) Residents of cities of the first class working for
13 employers not governed by this act shall register and remit
14 the tax on returns and in amounts prescribed by the city of
15 the first class in its ordinances which have been heretofore
16 or hereafter enacted.
17 Section 3. Effective date.
18 This act shall take effect January 1, 1991.
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