PRINTER'S NO. 3269
No. 2308 Session of 2005
INTRODUCED BY M. KELLER, TIGUE, GINGRICH, CALTAGIRONE, SAYLOR,
BARRAR, BEYER, GRELL, HARRIS, HENNESSEY, KAUFFMAN, PAYNE,
PYLE, QUIGLEY, RAPP, REED, SONNEY, E. Z. TAYLOR, TURZAI AND
YUDICHAK, DECEMBER 7, 2005
REFERRED TO COMMITTEE ON FINANCE, DECEMBER 7, 2005
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 taxes.
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 a tax on earned income or net profits
15 within the taxing district who employs one or more persons,
16 other than domestic servants, for a salary, wage, commission or
17 other compensation, who has not previously registered, shall,
18 within fifteen days after becoming an employer, register with
19 the officer his name and address and such other information as
20 the officer may require.
21 (b) Every employer having an office, factory, workshop,
22 branch, warehouse, or other place of business within the taxing
23 jurisdiction imposing a tax on earned income or net profits
24 within the taxing district who employs one or more persons,
25 other than domestic servants, for a salary, wage, commission, or
26 other compensation, shall deduct at the time of payment thereof,
27 the tax imposed by ordinance or resolution of the taxing
28 district of each employe's domicile on the earned income due to
29 his employe or employes, and shall, on or before April 30, of
30 the current year, July 31, of the current year, October 31, of
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1 the current year, and January 31, of the succeeding year, file a
2 return and pay to the officer of the taxing district of each
3 employe's domicile 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 (b.1) An employer of an employe who is subject to an earned
23 income or net profits tax in the taxing district of the
24 employe's domicile but who is employed outside the taxing
25 district shall be obligated to make the deduction required by
26 subsection (b) if the employe informs the employer in writing of
27 all of the following:
28 (1) The employe's taxing district.
29 (2) That the taxing district imposes an earned income or net
30 profits tax on residents and the employe is subject to the tax.
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1 (3) The rate of the tax.
2 (c) On or before February 28, of the succeeding year, every
3 employer shall file with the officer:
4 (1) An annual return showing the total amount of earned
5 income paid, the total amount of tax deducted, and the total
6 amount of tax paid to the officer for the period beginning
7 January 1, of the current year, and ending December 31, of the
8 current year.
9 (2) A return withholding statement for each employe employed
10 during all or any part of the period beginning January 1, of the
11 current year, and ending December 31, of the current year,
12 setting forth the employe's name, address and social security
13 number, the amount of earned income paid to the employe during
14 said period, the amount of tax deducted, the political
15 subdivisions imposing the tax upon such employe, the amount of
16 tax paid to the officer. Every employer shall furnish two copies
17 of the individual return to the employe for whom it is filed.
18 (d) Every employer who discontinues business prior to
19 December 31, of the current year, shall, within thirty days
20 after the discontinuance of business, file the returns and
21 withholding statements hereinabove required and pay the tax due.
22 (e) Except as otherwise provided in section 9, every
23 employer who wilfully or negligently fails or omits to make the
24 deductions required by this section shall be liable for payment
25 of the taxes which he was required to withhold to the extent
26 that such taxes have not been recovered from the employe.
27 (f) The failure or omission of any employer to make the
28 deductions required by this section shall not relieve any
29 employe from the payment of the tax or from complying with the
30 requirements of the ordinance or resolution relating to the
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1 filing of declarations and returns.
2 * * *
3 Section 2. This act shall take effect in 60 days.
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