Act 32 Tax Change

Act 32 - 2012 Local Tax Change

Pennsylvania Local Withholding Changes: Pennsylvania is transitioning to a new local earned income tax collection system under Act 32, effective in 2012. The new system places additional responsibility on the employer to obtain accurate PSD codes for each employee and to determine the correct tax rate for each employee’s EIT withholding. Inaccurate withholding or reporting will result in penalties to the employer.

All employees must complete and sign a residency certificate form prior to 2012 and complete a new certificate if their residence changes. We have included the forms to be completed by the employees and to be returned to us prior to January 1, 2012.

Please feel free to make photo copies of the form below or you can obtain them on the internet at

Thank you for your cooperation. Any questions, please feel free to contact Jeanne Behm, Business Accounting at 610-378-1175 extension 162.

Click here for the Local Earned Income Tax Residency Certification Form.

Click here for an updated Act 32 brochure.