Local Service Tax
Pennsylvania Act 7 of 2007 amended the Local Tax Enabling Act, Act 511 of 1965, to make the following major changes to the Emergency and Municipal Services Tax (EMST), effective for the tax year 2008.
- The employer shall not deduct the $52 LST at the beginning of the year from the employee. The LST shall be deducted evenly from employee paychecks throughout the year. An employee who is paid weekly would see the tax deducted at the rate of $1 a week; while an employee who is paid biweekly would pay $2 every pay.
- The location of the LST shall be the place of employment, but in the event a person is engaged in more than one occupation or municipality at the same time, the priority of claim to collect such tax shall be the municipality in which a person is principally employed. Proof of deduction is required to be submitted to the secondary employer by the employee so that they can be exempt from having the LST deducted by two employers.
- Employer must submit at year end a summary of employee name, wages, social security number, address and the total amount paid for the year with the fourth quarter payment.
Act 7 also provides for an upfront exemption when:
- Total earned income from all sources within Murrysville is less than $12,000
- On active duty
- Employee is an honorably discharged veteran with 100% service-connected disability
An annual upfront exemption certificate must be completed by the employee and submitted to their employer to qualify for these exemptions. The employer is required to have the Exemption Certificate available for employees to complete. An exemption certificate can be obtained at the municipal website. Exemption Certificate Form A copy should be forwarded to your employer and also the municipal tax collector who is Keystone Collections Group . The employee should keep a copy for themselves.