Page last updated on 8/8/2011
NEW WITHHOLDING REQUIREMENTS FOR EARNED INCOME TAX – ACT 32 OF 2008
How it affects Bethel Park residents and employers.
Act 32 of 2008 is a Pennsylvania law that was passed with the intention of simplifying the way local Earned Income Tax (EIT) is paid and collected throughout the state. The law affects taxpayers, employers, municipalities, school districts, and tax collectors across Pennsylvania.
The most significant change of Act 32 is the consolidation of local EIT collectors. Act 32 requires all taxing jurisdictions within a specified geographical boundary to jointly select just one EIT collector to serve the entire area. Each of the areas is called a "Tax Collection District" (TCD). Bethel Park has been placed in the Southwest Allegheny County TCD, which includes all Allegheny County municipalities and school districts that are entirely located south and west of the Monongahela and Ohio rivers. That means Bethel Park will share the same EIT collector as our neighbors in Upper St. Clair, Mt. Lebanon, Brentwood, Robinson, and Jefferson Hills to name a few.
Although Act 32 was passed in 2008, the major changes will not go into effect until the 2012 tax year. Therefore, all taxes attributable to 2011 earnings will still be collected under the current system (including the 2011 final returns that are due April 15, 2012).
How will Act 32 impact taxpayers?
First, the consolidation means that all Bethel Park Earned Income Tax (EIT) will once again be collected by a single tax collector. Jordan Tax Service has been appointed as the tax collector for the Southwest Allegheny County TCD.
Therefore, both the municipal portion and the school district portion of Bethel Park's EIT will be collected by Jordan Tax Service under Act 32.
Another significant change is that employers must begin withholding the local EIT from your paycheck. This will eliminate the need to file and pay EIT quarterly. Taxpayers who are self-employed or work outside of Pennsylvania must continue making manual quarterly payments.
How will Act 32 impact employers?
All employers will be required to withhold local Earned Income Tax for all of their employees, regardless of where the employees live. Employers will be responsible for identifying each employee's residency and proper tax rate. Employers will have to provide that information to the tax collector quarterly along with the tax payments. Employers that have at least one location within the Southwest Allegheny County TCD must register with Jordan Tax Service.
Jordan Tax Service is hosting several Act 32 educational seminars for employers. All of the seminars are being offered free of charge. It is strongly encouraged that employers attend at least one of the following seminars:
August 11, 2011 at 6:00PM at the Hyatt Place Pittsburgh - North Shore (260 North Shore Drive, Pittsburgh, PA)
August 18, 2011 at 6:30PM at the Bethel Park Community Center (5151 Park Avenue, Bethel Park, PA)
August 25, 2011 at 6:30PM at the Green Tree Borough Municipal Building (10 W Manilla Avenue, Green Tree, PA)
How can I learn more?
Taxpayers and employers can learn more about Act 32 by visiting Jordan Tax Service's special Act 32 website at: www.jordantax.com/act32 . You can also call Jordan Tax Service at 412-835-5243 or 724-731-2300. More information is also available through the PA Department of Community and Economic Development's website at www.newpa.com (search for "Act 32").
More Earned Income Tax (EIT) Information
What is the rate of tax? The total 2011 local Earned Income Tax rate in Bethel Park is 1.4%. This is split between the Municipality (0.9%) and the Bethel Park School District (0.5%). The Municipality and School District use separate Tax Collectors for collection of the 2011 tax (although Act 32 will change this for 2012 taxes, as indicated above). The 0.9% EIT due to the Municipality for 2011 must be paid to Jordan Tax Service.
Who is responsible to pay EIT? Any Bethel Park resident who has an earned income and/or net profits income. There are no exemptions due to age, level of income, or attendance at school.
What are the filing requirements and payment due dates? If your employer withholds local tax, you are only required to file a final return which is due on April 15 of each year. It is important to verify with your employer that they are withholding at the current rate of 0.9% for the Municipality of Bethel Park (and an additional 0.5% for the Bethel Park School District). If the proper amount of tax is not withheld, the taxpayer is responsible to pay the difference of the tax due quarterly.
Filing Requirements - Due Dates
If your employer does not withhold local tax, you must file quarterly tax returns and a final return by the following due dates:
| Period | Filing/Payment Due Date | For Months |
| 1st Quarter | April 30 | January, February, March |
| 2nd Quarter | July 31 | April, May, June |
| 3rd Quarter | October 31 | July, August, September |
| 4th Quarter | January 31 | October, November, December |
A Final Return is due April 15 and shall include all income and tax payments for the entire calendar year.
For any taxpayer who has not made quarterly payments, or if the quarterly payments were less than the total tax liability due, applicable penalty and interest will be applied to the outstanding balance and will continue to accrue until such time that all tax due is paid in full.
New residents or residents who are paying the tax for the first time must register with Jordan Tax Service.
If you do not receive a quarterly EIT form at least 2 weeks prior to the due date, please contact Jordan Tax Service or download the form here. If you do not receive a final EIT form by February each year, please contact Jordan Tax Service. If a resident's employer withholds municipal EIT, the arrangement should be verified annually to ensure the tax is being paid to the proper Tax Collector (Jordan Tax Service). Additionally, if a resident changes employers, the resident must arrange for proper Bethel Park withholding with their new employer.
Tax return forms are also available at the Bethel Park Public Library.
Earned Income Tax - Filing Requirements
Where/how is the tax paid? Payments for municipal taxes can be made using any of the following methods:
* Drive up and drop your payment in the orange deposit box located in the Municipal Building's lower parking lot;
* Via mail to the Jordan Tax Service Bethel Park office, 7100 Baptist Road, Bethel Park, PA 15102;
* In-person at the Jordan Tax Service Bethel Park office indicated above, Monday through Friday 8:00 a.m. – 4:30 p.m. (a deposit box is also available at this location 24 hours/day);
* Online at www.jordantax.com.
All Municipal taxes are due on or before the established due dates regardless of whether a tax bill is received by the resident.
