LOCAL SERVICES TAX
Effective January 1, 2023, the Local Services Tax applies to all persons working in Washington Township, regardless of their residence. The tax is a flat $52.00 levied annually on all persons engaging in an occupation within the geographic boundaries of the Township, including self-employed individuals. A person earning less than $12,000 annually is exempt from the tax. The Local Services Tax will replace the current $10.00 Occupational Privilege Tax.
EMPLOYER WITHHOLDING
A person subject to the Local Services Tax shall pay a pro rata share each payroll period. The pro rata share of the tax to be paid each payroll period is determined by dividing $52.00 by the number of payroll periods established by the employer for the calendar year. For example, if an employer has 26 pay periods in a year, $2.00 shall be deducted from each pay.
LOCAL SERVICES TAX COLLECTOR (Remittance of Collected Tax and Reporting)
Keystone Collections Group is serving as the Local Services Tax Collector. Employers and self-employed individuals must remit and report the employee Local Services Tax withholding to Keystone Collections Group on- line at www.KeystoneCollects.com or by mail at Keystone Collections Group, 546 Wendel Road, Irwin, PA 15642. Any questions, Employers call 1.888.328.0558 or Individuals call 1.866.539.1100. Employers are required to remit the Local Services Tax withheld from their employees and file a Local Services Tax Quarterly Return to the Keystone Collections Group within thirty days after the end of each quarter of a calendar year.
EXEMPTIONS TO THE LOCAL SERVICES TAX
Each person shall pay no more than $52.00 in Local Services Tax in a calendar year, irrespective of the number of political subdivisions a person may be employed. Any person whose total earned income and net profits from all sources within the Township are less than $12,000 for a calendar year are exempt. An annual exemption certificate must be completed by the employee and submitted to the employer. The exemption certificate can be downloaded at www.KeystoneCollects.com Click on Individuals; Forms for Individuals; scroll down to Local Services Tax Exemption Application. File this completed form with your employer. Upon receipt of the exemption certificate, the employer shall not withhold the tax from the person during the calendar year, or the remainder of a calendar year for which the exemption certificate applies.
REFUNDS
Employees are entitled to a refund if the Local Services Tax is deducted during a year when the total earnings are less than $12,000, or if the Local Services Tax was paid to another jurisdiction prior to working and paying the tax in Washington Township. Refunds can be requested by contacting the Local Services Tax Collector, Keystone Collections Group.