Frequently Asked Questions

Am I required to file a local tax return even if my employer withholds the tax from my paycheck?

Am I required to include local earned income tax withholding on my W2s?

Am I required to withhold the local services tax (LST) from payroll?

Am I responsible for paying the local services tax (LST) if my employer does not withhold it?

An employee of our business lives and works in a 0% local earned income tax rate location but we withheld them incorrectly, how do they get their money back?

Are any business activities excluded from the business privilege and mercantile tax?

Are employers required to file payroll taxes quarterly with the tax officer?

Are filing or payment extensions available for business privilege/mercantile tax?

Are minors required to file a local earned income tax return?

Are new hires during the year subject to the full local services tax (LST) if the annual rate is $10 or less?

Are new hires during the year subject to the full local services tax (LST) if the annual rate is higher than $10?

Are payment plans available?

Are payment plans offered for business privilege/mercantile tax?

Are penalties imposed on employers who do not withhold, file and pay local tax from payroll?

Are Pennsylvania residents who work out of state in a county or municipality that imposes a local income tax subject to that county or municipality’s local income tax?