CAWP/H2AP Holds PA Act 32 Educational Seminar

On September 22, the Association held a seminar to prepare contractors for the changes resulting from the Pennsylvania Act 32. This Act mandates that employers withhold their employees’ residential local taxes. The seminar was presented by CAWP Associate member Schneider Downs.

Over 60 people attended, either in person or via conference call. CAWP held this seminar in order to properly educate members before Act 32 takes effect.

The presenters offered a list of things employers should be doing to prepare for these changes, including the following:

• Start collecting certificates of residency from your employees.
• Register with your tax collector.
• Contact your payroll software vendor, and make sure they are planning to address the ACT 32 requirements.
• Assign the six-digit PSD number to your employee records within your payroll system. Make sure you discuss where this information is entered with your software vendor.
• Start building the electronic export routine based upon your tax collector’s specifications.
• If your employees work in multiple locations, familiarize yourself with the municipalities that have a non-resident tax rate greater than 1%.
• Review helpful websites to increase your education on this topic, such as www.newpa.com.

If you have further questions, contact Timothy D. Adams, tadams@schneiderdowns.com, Eric M. Wright, ewright@schneiderdowns.com, or Gennaro DiBello, gdibello@schneiderdowns.com.