PRINTER'S NO. 774
No. 710 Session of 1993
INTRODUCED BY HANNA, PESCI, DALEY, TIGUE, PISTELLA, MELIO,
TRELLO, BELFANTI, GIGLIOTTI AND FAJT, MARCH 22, 1993
REFERRED TO COMMITTEE ON FINANCE, MARCH 22, 1993
AN ACT
1 Amending the act of December 31, 1965 (P.L.1257, No.511),
2 entitled "An act empowering cities of the second class,
3 cities of the second class A, cities of the third class,
4 boroughs, towns, townships of the first class, townships of
5 the second class, school districts of the second class,
6 school districts of the third class and school districts of
7 the fourth class including independent school districts, to
8 levy, assess, collect or to provide for the levying,
9 assessment and collection of certain taxes subject to maximum
10 limitations for general revenue purposes; authorizing the
11 establishment of bureaus and the appointment and compensation
12 of officers, agencies and employes to assess and collect such
13 taxes; providing for joint collection of certain taxes,
14 prescribing certain definitions and other provisions for
15 taxes levied and assessed upon earned income, providing for
16 annual audits and for collection of delinquent taxes, and
17 permitting and requiring penalties to be imposed and
18 enforced, including penalties for disclosure of confidential
19 information, providing an appeal from the ordinance or
20 resolution levying such taxes to the court of quarter
21 sessions and to the Supreme Court and Superior Court,"
22 further providing for collection of earned income tax.
23 The General Assembly of the Commonwealth of Pennsylvania
24 hereby enacts as follows:
25 Section 1. Division IV of section 13 of the act of December
26 31, 1965 (P.L.1257, No.511), known as The Local Tax Enabling
27 Act, is amended to read:
1 Section 13. Earned Income Taxes.--On and after the effective
2 date of this act the remaining provisions of this section shall
3 be included in or construed to be a part of each tax levied and
4 assessed upon earned income by any political subdivision levying
5 and assessing such tax pursuant to this act. The definitions
6 contained in this section shall be exclusive for any tax upon
7 earned income and net profits levied and assessed pursuant to
8 this act, and shall not be altered or changed by any political
9 subdivision levying and assessing such tax.
10 * * *
11 IV. Collection at Source
12 (a) Every employer having an office, factory, workshop,
13 branch, warehouse, or other place of business [within the taxing
14 jurisdiction imposing] with employes subject to a tax on earned
15 income or net profits [within the taxing district] under this
16 act who employs one or more persons, other than domestic
17 servants, for a salary, wage, commission or other compensation,
18 who has not previously registered, shall, within fifteen days
19 after becoming an employer, register with the officer his name
20 and address and such other information as the officer may
21 require.
22 (b) Every employer having an office, factory, workshop,
23 branch, warehouse, or other place of business [within the taxing
24 jurisdiction imposing] with employes subject to a tax on earned
25 income or net profits [within the taxing district] under this
26 act who employs one or more persons, other than domestic
27 servants, for a salary, wage, commission, or other compensation,
28 shall deduct at the time of payment thereof, the tax imposed by
29 ordinance or resolution on the earned income due to his employe
30 or employes, and shall, on or before April 30, of the current
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1 year, July 31, of the current year, October 31, of the current
2 year, and January 31, of the succeeding year, file a return and
3 pay to the officer the amount of taxes deducted during the
4 preceding three-month periods ending March 31, of the current
5 year, June 30, of the current year, September 30, of the current
6 year, and December 31, of the current year, respectively. Such
7 return unless otherwise agreed upon between the officer and
8 employer shall show the name and social security number of each
9 such employe, the earned income of such employe during such
10 preceding three-month period, the tax deducted therefrom, the
11 political subdivisions imposing the tax upon such employe, the
12 total earned income of all such employes during such preceding
13 three-month period, and the total tax deducted therefrom and
14 paid with the return.
15 Any employer who for two of the preceding four quarterly
16 periods has failed to deduct the proper tax, or any part
17 thereof, or has failed to pay over the proper amount of tax to
18 the taxing authority, may be required by the officer to file his
19 return and pay the tax monthly. In such cases, payments of tax
20 shall be made to the officer on or before the last day of the
21 month succeeding the month for which the tax was withheld.
22 (c) On or before February 28, of the succeeding year, every
23 employer shall file with the officer:
24 (1) An annual return showing the total amount of earned
25 income paid, the total amount of tax deducted, and the total
26 amount of tax paid to the officer for the period beginning
27 January 1, of the current year, and ending December 31, of the
28 current year.
29 (2) A return withholding statement for each employe employed
30 during all or any part of the period beginning January 1, of the
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1 current year, and ending December 31, of the current year,
2 setting forth the employe's name, address and social security
3 number, the amount of earned income paid to the employe during
4 said period, the amount of tax deducted, the political
5 subdivisions imposing the tax upon such employe, the amount of
6 tax paid to the officer. Every employer shall furnish two copies
7 of the individual return to the employe for whom it is filed.
8 (d) Every employer who discontinues business prior to
9 December 31, of the current year, shall, within thirty days
10 after the discontinuance of business, file the returns and
11 withholding statements hereinabove required and pay the tax due.
12 (e) Except as otherwise provided in section 9, every
13 employer who wilfully or negligently fails or omits to make the
14 deductions required by this section shall be liable for payment
15 of the taxes which he was required to withhold to the extent
16 that such taxes have not been recovered from the employe.
17 (f) The failure or omission of any employer to make the
18 deductions required by this section shall not relieve any
19 employe from the payment of the tax or from complying with the
20 requirements of the ordinance or resolution relating to the
21 filing of declarations and returns.
22 * * *
23 Section 2. The amendment of Division IV of section 13 of the
24 act shall apply to the calendar quarter beginning after the
25 effective date of this act and to calendar quarters beginning
26 thereafter.
27 Section 3. This act shall take effect immediately.
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