About Act 32
Important Changes to the Way Earned Income Taxes are Collected in Pennsylvania
Act 32, signed into law in 2008, completely restructures and significantly changes the withholding, reporting and collection of local earned income taxes (EIT) in Pennsylvania.
The legislative goals of Act 32 include:
- Establishing uniform withholding, remittance, and distribution requirements;
- Providing for more accountability, transparency, oversight, and enforcement and strengthening reporting requirements to better track every tax dollar;
- Developing uniform forms, notices, reports, schedules, and codes for school districts, municipalities, and tax collection districts;
- Consolidating and streamlining the EIT collection process across the Commonwealth.
How Act 32 attempts to accomplish these goals
Act 32 makes the following changes:
- Significantly reduces the number of tax collectors in Pennsylvania (from 560 to 69) and establishes a single Tax Collection District (TCD) in each county (except Allegheny County, where there are 4 TCDs, and Philadelphia County, which is exempt from Act 32);
- Requires all employers to withhold EIT on behalf of all employees;
- Establishes strict reporting requirements for tax collectors collecting EIT;
- Authorizes the Pennsylvania Department of Community and Economic Development (DCED) to adopt uniform rules, regulations, and forms to be followed and utilized in each TCD by its designated Tax Officer.
Jordan Tax Service, Inc. and Act 32
Jordan Tax Service, Inc., or JTS, is proud to announce that it has been named tax collector (Tax Officer) for the Allegheny County Central and the Southwest Allegheny County Tax Collection Districts, and will be collecting EIT on behalf of the political subdivisions within each TCD beginning January 1, 2012.
The Allegheny County Central TCD consists of the City and School District of Pittsburgh and the Borough of Mount Oliver.
A list of which political subdivisions are located within the Southwest Allegheny County Tax Collection District is available here.
JTS is committed to providing the highest quality customer service to our TCD clients as well as to the taxpayers and employers residing and doing business therein. We look forward to working with you.
Additional information on Act 32
Act 32 information from the PA Department of Community and Economic Development (DCED)
Official Text of Act 32 (NOTE: This link provides access to the text of Act 32, as finally passed by the Pennsylvania General Assembly. The original text of the law may no longer be current. Jordan Tax Service, Inc. does not warrant any content linked to this page. Users should seek legal assistance to verify the current status of the law.)