New Tax Rules Require All Employees (Faculty, Staff, and Students) to Submit Tax Residency Certification Form by Nov. 15

Posted September 15th, 2011 at 12:11 pm.

FROM: CHRISTINE EIGENBROT, CONTROLLER’S OFFICE – PAYROLL

This memo is to notify employees of the College of an important change affecting your paycheck. This change is effective as of January 1, 2012 and only affects employees of the College. The reason for the change is to assure that the College remains in compliance with provisions of the Pennsylvania Act 32 of 2008 which transitions the authority for the administration of PA local earned income tax collection from individual municipalities and school districts to countywide Tax Collection Districts. The provisions of PA Act 32 are scheduled to be implemented statewide beginning on 1/1/2012.

Local Earned Income Tax Residency Certification FormLocal Earned Income Tax Residency Certification Form

PA Act 32 requires employers to withhold PA local earned income tax from each employee based on the higher tax rate of either their PA resident locality or their PA nonresident work locality. The College is located in Lower Merion Township and this municipality does not currently impose a local earned income tax which may also be true of other municipalities within PA. Employees who reside in a PA locality which currently imposes a local earned income tax will now have this tax deducted from their paycheck and remitted to the Tax Collector for their Tax Collection District. Please note that the PA Local Services Tax imposed by the Township of Lower Merion is not covered or subject to Act 32 and still remains in effect for all employees.

To determine the resident locality of each of our employees, the College must obtain a completed Local Earned Income Tax Residency Certification Form from all current employees. Also, each new employee is required to complete the Local Earned Income Tax Residency Certification Form. In addition, a Local Earned Income Tax Residency Certification Form must be completed by any employee who changes his/her resident locality.

It is mandatory that all College employees (faculty, staff and student employees) complete a Local Earned Income Tax Residency Certification Form regardless of whether their current resident and/or work municipality imposes a local earned income tax or not.

NOTE: Students living on-campus should use their BMC address when completing the Local Earned Income Tax Residency Certification Form. Students living off-campus should use their PA resident address when completing the Local Earned Income Tax Residency Certification Form.

The Local Earned Income Tax Residency Certification Form requires a PSD Code for your municipality. To obtain your PSD Code, please go to http://www.newpa.com/webfm_send/1627 If you are unsure what your local withholding rate is or which municipality your home is located in, please go to http://munstatspa.dced.state.pa.us/FindLocalTax.aspx to acquire this information. Please remit your completed form as soon as possible to the Controller’s Office – Payroll. Local Earned Income Tax Residency Certification Forms must be received in the Controller’s Office – Payroll by November 15, 2011.

If you have any questions regarding the completion of this form, please feel free to contact the Payroll Office at payroll(at)brynmawr(dot)edu, Lee Brown [labrown(at)brynmawr(dot)edu] x5267, or Christine Eigenbrot [ceigenbr(at)brynmawr(dot)edu] x5252.

PLEASE NOTE: Lee Brown of the Payroll Office will be available from 11am to 2pm at the Benefits Fair scheduled for 9/20/11 in Thomas Great Hall to answer any questions regarding the completion of the Local Earned Income Tax Residency Certification Form and will be pleased to assist any employee in completing their form.

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