The Payroll Factory, Inc. April 2021 Newsletter
Welcome to April and the beginning of the 2nd quarter of the year. In this newsletter, we focus on Pennsylvania’s ACT 32 and Labor Law Posters
Pennsylvania ACT 32 came into play in January 2012. It requires Pennsylvania employers to withhold the higher of the earned income tax where either the employee lives or works. Every municipality is different meaning some have earned income taxes/wage tax and some do not. Each municipality has what are known as PSD codes (Political Sub Division codes) which are 6 digits. Many of the municipalities in Pennsylvania also have Local Service Tax (LST) which can range from $10 to $52 per year on top of the Earned Income Tax. The website to retrieve the appropriate code and amount of Earned Income Tax/Local Service Tax is the Pennsylvania Department of Community and Economic Development. Your client’s payroll processor should have the mechanism to gather that information for them.
Labor Law posters are mandated state and federal employment law notices employers who have at least one employee or more are required to put in an area frequented by their employees. There can be penalties incurred by not adhering to post current labor law posters in the workplace. Your client’s payroll provider can also provide the mechanism to get a labor law poster.
As always “whatever it takes,” I look forward to working with you, your associates and above all your clients! Thank you very much and have a successful tax season.
Sincerely,
Steve Sabel
Senior Account Relationship Manager
The Payroll Factory, Inc.
18 East Lancaster Avenue
Malvern, Pennsylvania 19355
267-907-4179 cell
steve@prfusa.com
www.thepayrollfactory.com
