PRINTER'S NO. 4157
No. 3028 Session of 1992
INTRODUCED BY HANNA, PESCI, ITKIN, BELFANTI AND KRUSZEWSKI,
NOVEMBER 17, 1992
REFERRED TO COMMITTEE ON FINANCE, NOVEMBER 17, 1992
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.--* * *
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] with employes subject to a tax on earned
6 income or net profits [within the taxing district] under this
7 act who employs one or more persons, other than domestic
8 servants, for a salary, wage, commission or other compensation,
9 who has not previously registered, shall, within fifteen days
10 after becoming an employer, register with the officer his name
11 and address and such other information as the officer may
12 require.
13 (b) Every employer having an office, factory, workshop,
14 branch, warehouse, or other place of business [within the taxing
15 jurisdiction imposing] with employes subject to a tax on earned
16 income or net profits [within the taxing district] under this
17 act who employs one or more persons, other than domestic
18 servants, for a salary, wage, commission, or other compensation,
19 shall deduct at the time of payment thereof, the tax imposed by
20 ordinance or resolution on the earned income due to his employe
21 or employes, and shall, on or before April 30, of the current
22 year, July 31, of the current year, October 31, of the current
23 year, and January 31, of the succeeding year, file a return and
24 pay to the officer the amount of taxes deducted during the
25 preceding three-month periods ending March 31, of the current
26 year, June 30, of the current year, September 30, of the current
27 year, and December 31, of the current year, respectively. Such
28 return unless otherwise agreed upon between the officer and
29 employer shall show the name and social security number of each
30 such employe, the earned income of such employe during such
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1 preceding three-month period, the tax deducted therefrom, the
2 political subdivisions imposing the tax upon such employe, the
3 total earned income of all such employes during such preceding
4 three-month period, and the total tax deducted therefrom and
5 paid with the return.
6 Any employer who for two of the preceding four quarterly
7 periods has failed to deduct the proper tax, or any part
8 thereof, or has failed to pay over the proper amount of tax to
9 the taxing authority, may be required by the officer to file his
10 return and pay the tax monthly. In such cases, payments of tax
11 shall be made to the officer on or before the last day of the
12 month succeeding the month for which the tax was withheld.
13 (c) On or before February 28, of the succeeding year, every
14 employer shall file with the officer:
15 (1) An annual return showing the total amount of earned
16 income paid, the total amount of tax deducted, and the total
17 amount of tax paid to the officer for the period beginning
18 January 1, of the current year, and ending December 31, of the
19 current year.
20 (2) A return withholding statement for each employe employed
21 during all or any part of the period beginning January 1, of the
22 current year, and ending December 31, of the current year,
23 setting forth the employe's name, address and social security
24 number, the amount of earned income paid to the employe during
25 said period, the amount of tax deducted, the political
26 subdivisions imposing the tax upon such employe, the amount of
27 tax paid to the officer. Every employer shall furnish two copies
28 of the individual return to the employe for whom it is filed.
29 (d) Every employer who discontinues business prior to
30 December 31, of the current year, shall, within thirty days
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1 after the discontinuance of business, file the returns and
2 withholding statements hereinabove required and pay the tax due.
3 (e) Except as otherwise provided in section 9, every
4 employer who wilfully or negligently fails or omits to make the
5 deductions required by this section shall be liable for payment
6 of the taxes which he was required to withhold to the extent
7 that such taxes have not been recovered from the employe.
8 (f) The failure or omission of any employer to make the
9 deductions required by this section shall not relieve any
10 employe from the payment of the tax or from complying with the
11 requirements of the ordinance or resolution relating to the
12 filing of declarations and returns.
13 * * *
14 Section 2. The amendment of Division IV of section 13 of the
15 act shall apply to the calendar quarter beginning after the
16 effective date of this act and to calendar quarters beginning
17 thereafter.
18 Section 3. This act shall take effect immediately.
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