Effective Jan. 1, all Pennsylvania employers, which includes labor unions, must withhold from employee paychecks the income tax due localities.
This is a requirement of a law that reformed and standardized the local earned-income tax system in the state and applies to all employers who maintain worksites in Pennsylvania.
The law, known as Act 32 and effective Jan. 1, requires uniform withholding of earned income taxes and remittance to a single local collector or tax officer.
Employers are required to withhold the higher of the employee’s resident earned income tax (where they reside) or the employee’s municipal non-resident earned income tax (where they are employed).
Employers are required to obtain information via a Residency Certification Form for each employee, which the employee must complete and sign. The form can be downloaded off the following webpage, which also includes more information on Act 32:
Once you receive the completed and signed Residency Certification Form from your employees, you should visit the following website for additional instructions:
Philadelphia residents are exempt from Act 32 as their current tax system is administered by the Philadelphia Department of Revenue.
If you have additional questions, you may call your UTU auditor or the UTU International at (216) 228-9400.