PENNSYLVANIA ACT 32#

Calculation and deduction of EIT (Earned Income Tax) and related PSD (Political Sub Division) codes#

Act 32 For Employees/Self-Employed
Employers who maintain worksites in PA or employ individuals who may work from their homes are required to withhold applicable earned income tax from those employees.

Under Act 32, employers are required to withhold the higher of the employee's resident earned income tax amount (rate of total resident EIT where they reside) vs. the employee's municipal non-resident earned income tax amount (rate of total non-resident EIT where they are employed).