What Is Earned Income Tax (EIT) Withholding?
Local income taxes in Pennsylvania are variously termed earned income taxes, wage taxes or net profits taxes or a combination of these terms. The earned income tax is a tax levied as a percent of earned income. The Local Tax Enabling Act requires every employer having a factory, workshop, branch, warehouse or other place of business within the taxing jurisdiction to register with the earned income tax officer of that district. All employers with work sites within the taxing jurisdiction are required by law to deduct the earned income tax from their employees at that site if the tax is listed in the Earned Income Tax Register of the Department of Community and Economic Development. If the municipality and/or school district’s tax rates are not listed in the Register, employers are not required to withhold taxes levied under the Local Tax Enabling Act from employee wages. Except for the city of Philadelphia and the Pittsburgh School District, employers have no legal responsibility to wit
