Employers need to register with the tax office in order to establish a Local Services Tax account for reporting and remitting purposes. In the case where the employer is also subject to the Earned Income Tax withholding requirements within the Centre County Tax Collection District, the same account number will be assigned for both the Local Services Tax and the Earned Income Tax.
Employers, including Sole Proprietorships, Partnerships, S Corporations, Limited Liability Companies, etc., with employees working within the municipalities and school districts which levy a combined ($47.00 municipal portion; $5.00 school district portion) Local Services Tax of $52.00 are charged with the responsibility of withholding a pro rata portion of the LST each pay period from all employees. It should be noted that there are a couple of exceptions to the general rule stated above.
Employers, including Sole Proprietorships, Partnerships, S Corporations, Limited Liability Companies, etc., with employees working within the municipalities and/or school districts which levy a Local Services Tax of $10.00 are charged with the responsibility of withholding the Local Services Tax in one lump sum during the quarter in which the municipal and/or school district income exemption levels are met.
The collected LST is due to the tax collector 30 days after the end of each quarter ending March 31, June 30, September 30, and December 31. Please note that the amount of LST reported on each quarterly return must be reported in one lump sum (total sum of municipal portion and school district portion, where applicable). In the event there is no LST liability for a given quarter, a “zero” return must be filed with the tax office. If a “zero” return is not filed with the tax office, an employer will be considered delinquent.
**Note, the Local Services Tax is not included in Act 32 of 2008; therefore, employers can not file a combined return for multiple statewide locations with one Tax Collection District**