Act 32 of 2008

Act 32 is a Pennsylvania law that standardizes the local earned income taxing system.   It consolidates the process by creating new tax collection districts, standardizing forms and mandating employer withholding statewide in 2012.   Act 32 divides the state into 69 TCDs, one TCD for each county with Allegheny County divided into four (4) TCDs.   Philadelphia is not part of Act 32 as they fall under the Sterling Act.   The number of collectors in the state will be reduced to 21 from the current number of 560, resulting from multiple TCDs having the same collector.

Informational Documents and Links! The What, Why and How of filing a Combined Return DCED Act 32 Website DCED Address Lookup DCED Tax Register DCED Tax Register (Fayette County Listing)

Frequently Asked Questions! What does Act 32 mean to me as an Employer? What is the Certificate of Residency? Do I submit the Certificate of Residency to SWRTB? Am I required to withhold Earned Income Tax from all of my employees? How do I identify the taxing jurisdiction PSD Codes? How do I determine the correct Earned Income Tax rate to withhold? If my employee lives and works in an area that doesn’t levy an Earned Income Tax, should I report anything for that individual? What if my employee moves during a reporting period? Do I need to file a zero return? How will I remit the local earned income tax to SWRTB? What are the due dates for reporting and remittance of EIT? I use a payroll company for all of my payroll functions including tax reporting. Who will be responsible for any penalty and fee amounts? I use a payroll company to process my payroll and pay my EIT. Do I need to register on SWRTB's eReporting website?

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