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Finance FAQ

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1. When is the local tax bill due?

The due dates for the quarterly payment are as follows per tax period or fractional period:

• Quarter 1 (January-March) - Due April 30
• Quarter 2 (April-June) - Due July 31
• Quarter 3 (July-September) - Due October 31
• Quarter 4 (October-December) - Due January 31
• Final Return (Full Tax Year) - Due April 15

2. Where do I pay the Colonial School District's Real Estate Tax bill?

Colonial School district taxes are collected by Elite Revenue. Each year specific dates and times are set when the taxes will be collected at the school. Please call Elite Revenue at 484-681-9231 for further information on these dates.

3. What is the Earned Income Tax?

The Earned Income Tax is a tax applying to gross compensation and/or net profits which is commonly referred to as a "wage tax." It is a tax levied against an individual taxpayer's earned income and/or net profits whether the income is from the operation of a business (including home occupations) or from wages, commissions, or other sources. The definition of "earned income" is payment for services rendered.

4. Who is taxable?

All residents of Whitemarsh Township regardless of age or amount of earned income, would be taxed. In addition, non-residents working in the Township of Whitemarsh are taxed, unless they have a similar tax at a place of residence in Pennsylvania. A non-resident employee shall be deemed to be employed in Whitemarsh Township, if the employee reports to and/or receives work assignments from, the employer's office located within Whitemarsh Township.

5. If I am subject to the Philadelphia Wage Tax, must I also pay this tax?

No, if employed in Philadelphia, you may use the Philadelphia Wage Tax as a credit against your liability for the township tax. The Philadelphia credit may only be applied to the taxes owed by the person who is employed in the city.

6. How will the Earned Income Tax be collected?

From some, it will be collected at the source of their income by means of withholding by their employers. From others, it will be collected directly in quarterly installments. The Township has engaged the services of Berkheimer Associates Inc. to serve as the Township agent for the collection of this tax. Berkheimer can be reached at 800-360-8989 or online.

7. Will I be notified when each tax installment is due?

Annually, you will be mailed a packet of forms which must be completed and returned as the appropriate returns are due. The failure to receive notification will not relieve the taxpayer of his responsibility for making payments or filing the required notices.

8. Is all income subject to the tax?

No, only earned income / net profits are subject to this tax. Earned Income Tax is defined as: Salaries, wages, commissions, bonuses, incentive payments, fees, tips and other compensation received by a person or his/her personal representative for services rendered, whether directly or through an agent, and whether in cash or in property, but not including:

• Wages or compensation paid to persons on active military service
• Periodic payments for sickness and disability other than regular wages received during a period of sickness, disability or retirement
• Payments arising under worker's compensation acts, occupational disease acts and similar legislation
• Payments commonly recognized as old-age benefits, retirement pay or pensions paid to persons retired from service after reaching a specific age or after a stated period of employment or payments commonly known as public assistance
• Unemployment compensation payments made by any governmental agency or payments to reimburse expenses
• Payments made by employers or labor unions for wage and salary supplemental programs, including, but not limited to programs covering hospitalization, sickness, disability or death, supplemental unemployment benefits, strike benefits, social security and retirements

9. Who must file a quarterly return?

In effect, each resident will be responsible for filing a tax return on actual or estimated income each quarter. To be relieved of this obligation, every resident whether working, unemployed, or retired (including non-working housewives), must file the Resident Questionnaire provided by Berkheimer Associates Inc. Residents who are temporarily unemployed are still required to file returns quarterly, whether they have income to report or not. Residents subject to total withholding of their tax by their employer must complete the Resident Questionnaire as well. Generally, these residents will not receive or be required to file Quarterly Returns unless they have additional income to report which is not subject to withholding by employer.

10. Who must file a final return?

Every resident who has earned income or could reasonably be expected to have had earned income during the succeeding year must file a Final Return by April 15 whether there is any tax due or not.

11. What happens if I do not pay or file the required returns?

Late payments are subject to interest of 6% per annum on the amount of the tax and an additional penalty of 0.5% of the amount of the unpaid tax for each month or fraction thereof during which the tax remains unpaid, for taxes assessed prior to January 1, 2012. For taxes assessed beginning January 1, 2012, an additional penalty of 1.0% of the amount of the unpaid tax for each month or fraction thereof during which the tax remains unpaid. Taxpayers who refuse or fail to file the returns or otherwise comply with the terms of the Ordinance or Resolution, may upon conviction be sentenced to pay a fine of not more than $500 for each offense, and costs in default of payment of said fines and costs, the taxpayer may be imprisoned for a period not exceeding 30 days for each offense. In addition, the collector is entitled to recover various costs and fees incurred as a result of the collection process.

12. Must I file if I receive no taxable income?

Yes, you are still required to complete the questionnaire which was sent to you. You should denote, on the proper line, the reason you have no income (i.e., retired, housewife, disabled, unemployed...). You should then sign and return it to Berkheimer Associates, Inc.

13. Which employers are required to withhold the tax from their employees?

All employers doing business in Whitemarsh Township must withhold the tax from all their employees that are subject to the tax. It is not optional.

14. Must those subject to withholding do anything else?

Yes, they must file a Final Return on or before April 15, on the forms provided showing total salary paid and tax withheld. Their employers are required to pay to the Tax Officer, on a quarterly basis, all taxes withheld, and on or about February 28 of the succeeding year the employer will reconcile all earnings paid and taxes withheld for each employee.

15. If my work status should change from an employer who as been withholding, to an employer in an area who does not withhold, what do I do?

At such time as they taxpayer is no longer subject to withholding, it becomes the responsibility of the taxpayer to notify the tax office and make future payments and returns.

16. What happens if I overestimate or underestimate my income?

Adjustments will be made on the following Quarterly or Final Return. Underpayment may be subject to interest and penalty charges.

17. Are non-residents taxable?

Yes, persons who reside in other areas but work in the Township of Whitemarsh are liable for the tax unless they pay the same tax to their resident community in the Commonwealth of Pennsylvania. Your employer in Whitemarsh Township will still withhold the tax from your compensation. The taxes due your resident area will be remitted to your collector on your behalf.

18. Is there any minimum or maximum income or age group/

No, under state law all earned income is taxable no matter who earns it. The tax is levied on the income not the person.

19. Does Whitemarsh Township have an Earned Income Tax (EIT)?

Yes. Click on the link to Earned Income Tax on the left hand side of the page for more information.