Whitemarsh Township, Pennsylvania
Board of Supervisors
Sara Erlbaum, Chair
Amy Grossman, Vice-Chair
Robert R. Hart
Cathy Peduzzi
James A.Totten

Earned Income Tax ("EIT")

Effective February 1, 2003, Whitemarsh Township enacted a one-half percent (0.5%) EIT on residents and nonresidents of Whitemarsh Township. Effective July 1, 2005, the Colonial School District enacted a one-half percent (0.5%) EIT on Whitemarsh Township residents. Effective July 1, 2005, Whitemarsh Township enacted a one percent (1%) EIT on nonresidents of Whitemarsh Township. Effective January 1, 2007, Whitemarsh Township enacted a one-quarter percent (0.25%) Open Space EIT used for the sole purpose of acquiring interest in real property and/or to pay debt service associated with the acquisition of real property for the purpose of preserving open space and agricultural lands. The total combined rate (Whitemarsh Township and Colonial School District) of EIT for residents of Whitemarsh Township is one and one-quarter percent (1.25%) as of January 1, 2007. The total combined rate (Whitemarsh Township and Colonial School District) of EIT for nonresidents of Whitemarsh Township is one percent (1%) as of July 1, 2005. The following are answers to frequently asked questions about the EIT. 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 1-800-360-8989 or on line at www.hab-inc.com.

Question 1: WHAT IS THE EARNED INCOME TAX?

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 serviced rendered.

Question 2: 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 nonresident 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.

Question 3: 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.

Question 4: 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 1-800-360-8989 or on line at www.hab-inc.com.

Question 5: WHEN IS THE TAX DUE?

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

Quarter Period Covered Due Date
1 Jan., Feb., March April 30
2 Apr., May, June July 31
3 July, Aug., Sept. October 31
4 Oct., Nov., Dec. January 31
Final Return Full Tax Year April 15

Question 6: 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.

Question 7: 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:

Question 8: 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". 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.

Question 9 : 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 15th whether there is any tax due or not.

Question 10: 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.

Question 11: WHAT HAPPENS IF I DO NOT PAY OR FILE THE REQUIRED RETURNS?

Late payments are subject to interest of six percent (6%) per annum on the amount of the tax and an additional Penalty of one-half of one percent (1/2 of 1%) 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 Five Hundred Dollars ($500.00) for each offense, and costs in default of payment of said fines and costs, the taxpayer may be imprisoned for a period not exceeding Thirty (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.

Question 12: WHAT 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. THERE IS NO OPTION!!

Question, 13: 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.

Question 14: IF MY WORK STATUS SHOULD CHANGE FROM AN EMPLOYER WHO HAS BEEN WITHHOLDING, TO AN EMPLOYER IN AN AREA WHO DOES NOT WITHHOLD -WHAT DO I DO?

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

Question 15: 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.

Question 16: 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.

Question 17: 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.

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Last Added: 7/7/2014 11:33 AM

Whitemarsh Township
616 Germantown Pike
Lafayette Hill, PA 19444

Phone: (610) 825-3535
Fax: (610) 825-9416

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