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Southwest Regional Tax Bureau

One Centennial Way, Scottdale, PA  15683


Table of Contents

  1. Why do I have to pay wage tax?
  2. Where does the money from local income tax go?
  3. How do I pay?
  4. How is interest and penalty calculated?
  5. How is 'earned income' defined?
  6. What if I have a question?

Why do I have to pay wage tax?

Most taxpayers understand that municipalities and school districts depend upon tax moneys to enable them to provide the education and municipal services that we expect.  Wage tax revenue provides one of their sources of money.  Virtually all Pennsylvania municipalities and school districts now collect wage tax.

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Where does the money from local earned income tax go?

By law, the money collected is divided between the school district and the municipality where you live.  That is why it is important to indicate on your final return what municipality you reside in, it helps us to distribute your money correctly.

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How do I pay?

If your employer withholds your wage tax, they remit it at the end of each quarter.  If it is not withheld, you are responsible for filing and paying your tax quarterly.  The quarters are due on the dates shown on the quarterly return.  At  the end of the tax year, you are required by law to file your final return.  This is due by April 15th, as so are your state and federal returns.

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How is interest and penalty calculated?

By state law, we are allowed to charge 1/2 % interest and 1/2 % penalty on any late tax payments.  If for example, you have paid some of your quarterly payments, but not all of them, you will be assessed interest and penalty on any tax due regardless of how you made your quarterly payments.

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How is 'earned income' defined?

"Earned Income" includes salaries, wages, commissions, bonuses, incentive payments, stock options, executors fees, lump sum distributions, fees, tips and other compensation received by a person or his personal representative for services rendered, whether directly or through an agent, and whether in cash or in property; not including however, 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,  retirement or payments arising under workmen's compensation acts, occupational disease acts and similar legislation, or 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 payments made by any governmental agency or payments to reimburse expenses or 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 retirement.

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What if I have a question?

You are always welcome to call the office for more information.  We are open Monday through Friday, 8:00 a.m. to 4:00 p.m., closed for lunch 11:30 a.m. to 12:30 p.m., and closed holidays. Our phone are numbers are (724) 887-5320, (724) 439-2312, (724) 834-5240 or Toll free: 1-800-832-2314.  We will be glad to give you information that will help you understand the law or to help you file your return correctly.   We do not want to charge you interest and penalty, but under state law we have no authority to do otherwise.  We would much rather help you file your return correctly.

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This page last modified on 03/17/08

Questions or problems regarding this web site should be directed to [swrtb@lcsys.net].
Copyright © 2002 (Southwest Regional Tax Bureau) All rights reserved.
Last modified: 03/17/08.