Employer Payroll Withholding

The Local Tax Enabling Act requires businesses with employees working in Pennsylvania to withhold the appropriate local earned income tax and Local Services Tax from payroll. Employers that do not timely pay local payroll tax may be liable for the tax plus statutory penalty, interest and Act 192 costs.

The deadline to file payroll taxes occurs 30 days from the close of the calendar quarter. Employers with workplace locations in multiple Tax Collection Districts (counties) may exercise the "Combined Monthly Filer" option and electronically report payroll tax monthly in one filing. Call 1-724-978-0328 to see if you qualify as a Combined Monthly Filer or for assistance with payroll withholding.

Use Keystone's e-file Business Portal to file payroll withholding. You do not have to pre-register. File using your Federal Employer Identification Number (FEIN); you do not need a Keystone Account Number to file your payroll taxes. With e-file you can report your withholding online and either schedule an electronic payment or send a separate check to arrive on or before the due date. If paying by check, mail with the payment voucher.

Different Tax Officers may be responsible for collecting the earned income tax and Local Services Tax in some jurisdictions. To determine the Tax Officer serving your workplace location, use the Helpful Links at the left.