Local Earned Income Tax
Earned Income Tax filings & Due Dates
Sometimes referred to as Wage Tax, the Earned Income Tax for Middlesex Township is a 1% tax levied on the earned income and net profits of Middlesex Township residents. This tax is collected under authority given by the Local Tax Enabling Act passed by the State legislature in 1965 and by Middlesex Township Ordinance 95. The 1% tax will be collected by our new appointed collector, Berkheimer Tax Administrator, beginning January 1, 2012, and distributed equally between the Township and the Mars Area School District. Middlesex Township receives 0.5% and the school district receives 0.5% of the tax collected.
Any resident of Middlesex Township, whether they own their home or rent, is liable for the Earned Income Tax. There are no exemptions because of age or limited earnings. Income subject to the tax includes, but is not limited to, wages, salaries, commissions, bonuses, incentive payments, fees, tips and other compensation received. In addition, all self-employed residents are subject to the tax based on net profits from the operation of a business or profession.
Final Year End Returns
Final year end returns must be filed by all persons subject to the tax on or before April 15, whether tax is, or is not due. Documentation such as W-2(s) or proper Pennsylvania Schedules C, E, F, K-1 or S Corp must be submitted with the tax return to verify reported income.
Every employer with a place of business in Middlesex Township is required to deduct the 1% earned income tax from the compensation of all employees, and on a quarterly basis, file a return, and remit payment to the Tax Collector (Berkheimer beginning 2012).
Act 32
In 2008 Pennsylvania passed a law, Act 32, that changes the way earned income tax (EIT) is collected and distributed in all of Pennsylvania. The law reforms and standardizes the local earned income tax system. The appointment of collection responsibility falls on countywide committees made up of representatives from local municipalities and school districts.
Act 32 requires uniform withholding of earned income taxes and remittance to a single local collector. The appointed collector for all of Butler County, including Cranberry Township, is Berkheimer Tax Associates. This means, effective January 1, 2012, Central Tax Bureau of Pennsylvania, Inc. ("CENTAX") will no longer be collecting current earned income tax. For 2011 and prior years, CENTAX will aid the Township in collecting taxes still owed to Middlesex Township.
The act applies to the earned income taxes levied and collected after December 31, 2011.
Employers
- 1 quarter (January - March): April 30
- 2 quarter (April - June): July 31
- 3 quarter (July - September): October 31
- 4 quarter (October - December): January 31
- Year End Return: April 15
- Municipality: Middlesex Township
- Political Subdivision Code (PSD): 100403
Sometimes referred to as Wage Tax, the Earned Income Tax for Middlesex Township is a 1% tax levied on the earned income and net profits of Middlesex Township residents. This tax is collected under authority given by the Local Tax Enabling Act passed by the State legislature in 1965 and by Middlesex Township Ordinance 95. The 1% tax will be collected by our new appointed collector, Berkheimer Tax Administrator, beginning January 1, 2012, and distributed equally between the Township and the Mars Area School District. Middlesex Township receives 0.5% and the school district receives 0.5% of the tax collected.
Any resident of Middlesex Township, whether they own their home or rent, is liable for the Earned Income Tax. There are no exemptions because of age or limited earnings. Income subject to the tax includes, but is not limited to, wages, salaries, commissions, bonuses, incentive payments, fees, tips and other compensation received. In addition, all self-employed residents are subject to the tax based on net profits from the operation of a business or profession.
Final Year End Returns
Final year end returns must be filed by all persons subject to the tax on or before April 15, whether tax is, or is not due. Documentation such as W-2(s) or proper Pennsylvania Schedules C, E, F, K-1 or S Corp must be submitted with the tax return to verify reported income.
Every employer with a place of business in Middlesex Township is required to deduct the 1% earned income tax from the compensation of all employees, and on a quarterly basis, file a return, and remit payment to the Tax Collector (Berkheimer beginning 2012).
Act 32
In 2008 Pennsylvania passed a law, Act 32, that changes the way earned income tax (EIT) is collected and distributed in all of Pennsylvania. The law reforms and standardizes the local earned income tax system. The appointment of collection responsibility falls on countywide committees made up of representatives from local municipalities and school districts.
Act 32 requires uniform withholding of earned income taxes and remittance to a single local collector. The appointed collector for all of Butler County, including Cranberry Township, is Berkheimer Tax Associates. This means, effective January 1, 2012, Central Tax Bureau of Pennsylvania, Inc. ("CENTAX") will no longer be collecting current earned income tax. For 2011 and prior years, CENTAX will aid the Township in collecting taxes still owed to Middlesex Township.
The act applies to the earned income taxes levied and collected after December 31, 2011.
Employers
- Employers must begin to withhold the local EIT from employees on January 1, 2012.
- Withholding of local earned income tax for all employees is mandatory.
- Have a 2012 form on file for all employees residency certification form.
- Update forms if employee address changes.
- Reporting to 1 single tax collector/agency.
- Uniform rules and regulations, forms and reporting requirements.
- Know the political subdivision codes (PSD) for identification of area and tax rates for your employees.
- Employer Registration with Berkheimer Online Registration
- Employer Electronic Filing Employers have 30 days after the end of each quarter to remit EIT to Berkheimer, the appointed Tax Collector.
- Address Search: To determine EIT rates, PSD Codes, and tax collector or tax officer contact information
- Verify that your employer is withholding earned income tax as mandated.
- Ensure that your tax dollars are distributed to Middlesex Township and the Mars Area School District.
- Complete a residency certification form (PDF) and submit to your employer to advise proper taxing jurisdiction.
- Complete and submit a new residency certification form immediately if your address changes.
- Uniform final year-end filing forms.
- Self-Employed Township Residents: There are no changes. You must file returns with Berkheimer, on a quarterly basis and at the end of the year, with the proper documentation.