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News Regional & State News Act 32 could raise local Earned Income Tax rates for some central Pennsylvanians
Sunday, 08 January 2012 10:09

Act 32 could raise local Earned Income Tax rates for some central Pennsylvanians

Written by  Megan Lello and Radio Pennsylvania

(Harrisburg) -- A new change to the state's tax collection system is designed to help streamline the process. Act 32 now requires employers to collect the highest local Earned Income Tax rate from employees' paychecks, no matter if the rate corresponds to the person's residence or workplace municipality. Steve Kratz, spokesman for the state Department of Community and Economic Development, says the move will help make sure employees don't owe the tax at the end of the year. "This doesn't change the actual tax rate, but what it does is, it ensures that the employer is taking out the correct amount of tax for the year, and employees aren't left with a stranded tax that has to be paid at the end of the year," he says. Act 32, which was approved by the state legislature in 2008, also reduces the number of tax collectors from 560 to 21. Some collection districts have already implemented the change.

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