PRINTER'S NO. 1725
No. 1413 Session of 1983
INTRODUCED BY CALTAGIRONE, SEPTEMBER 20, 1983
REFERRED TO COMMITTEE ON FINANCE, SEPTEMBER 20, 1983
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 the collection of the earned income
23 tax.
24 The General Assembly of the Commonwealth of Pennsylvania
25 hereby enacts as follows:
26 Section 1. Division IV of section 13 of the act of December
27 31, 1965 (P.L.1257, No.511), known as The Local Tax Enabling
28 Act, is amended to read:
1 Section 13. Earned Income Taxes.--* * *
2 IV. Collection at Source
3 (a) Every employer having an office, factory, workshop,
4 branch, warehouse, or other place of business within the taxing
5 jurisdiction imposing a tax on earned income or net profits
6 within the taxing district who employs one or more persons,
7 other than domestic servants, for a salary, wage, commission or
8 other compensation, who has not previously registered, shall,
9 within fifteen days after becoming an employer, register with
10 the officer his name and address and such other information as
11 the officer may require.
12 (b) 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, shall deduct at the time of payment thereof,
18 the tax imposed by ordinance or resolution on the earned income
19 due to his employe or employes, and shall, on or before April
20 30, of the current year, July 31, of the current year, October
21 31, of the current year, and January 31, of the succeeding year,
22 file a return and pay to the officer the amount of taxes
23 deducted during the preceding three-month periods ending March
24 31, of the current year, June 30, of the current year, September
25 30, of the current year, and December 31, of the current year,
26 respectively.
27 (b.1) A taxing authority may by ordinance or resolution
28 require an employer who withholds taxes of two hundred dollars
29 or more in any one month to file a return and pay the tax on or
30 before the last day of the month succeeding the month for which
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1 the tax was withheld.
2 (b.2) Such return unless otherwise agreed upon between the
3 officer and employer shall show the name and social security
4 number of each such employe, the earned income of such employe
5 during such preceding three-month period, the tax deducted
6 therefrom, the political subdivisions imposing the tax upon such
7 employe, the total earned income of all such employes during
8 such preceding three-month period, and the total tax deducted
9 therefrom and paid with the return.
10 (b.3) Any employer who for two of the preceding four
11 quarterly periods has failed to deduct the proper tax, or any
12 part thereof, or has failed to pay over the proper amount of tax
13 to the taxing authority, may be required by the officer to file
14 his return and pay the tax monthly. In such cases, payments of
15 tax shall be made to the officer on or before the last day of
16 the month succeeding the month for which the tax was withheld.
17 (c) On or before February 28, of the succeeding year, every
18 employer shall file with the officer:
19 (1) An annual return showing the total amount of earned
20 income paid, the total amount of tax deducted, and the total
21 amount of tax paid to the officer for the period beginning
22 January 1, of the current year, and ending December 31, of the
23 current year.
24 (2) A return withholding statement for each employe employed
25 during all or any part of the period beginning January 1, of the
26 current year, and ending December 31, of the current year,
27 setting forth the employe's name, address and social security
28 number, the amount of earned income paid to the employe during
29 said period, the amount of tax deducted, the political
30 subdivisions imposing the tax upon such employe, the amount of
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1 tax paid to the officer. Every employer shall furnish two copies
2 of the individual return to the employe for whom it is filed.
3 (d) Every employer who discontinues business prior to
4 December 31, of the current year, shall, within thirty days
5 after the discontinuance of business, file the returns and
6 withholding statements hereinabove required and pay the tax due.
7 (e) Except as otherwise provided in section 9, every
8 employer who wilfully or negligently fails or omits to make the
9 deductions required by this section shall be liable for payment
10 of the taxes which he was required to withhold to the extent
11 that such taxes have not been recovered from the employe.
12 (f) The failure or omission of any employer to make the
13 deductions required by this section shall not relieve any
14 employe from the payment of the tax or from complying with the
15 requirements of the ordinance or resolution relating to the
16 filing of declarations and returns.
17 * * *
18 Section 2. This act shall take effect in 60 days.
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