Earned Income Tax

Earned Income Tax:

Plum Borough’s Ordinance 555-95 imposes an Earned Income Tax rate of 1% on gross earnings and net profits, and the tax is split evenly between the Borough and School District.

With the passage of Act 32 in 2008 there were significant changes associated with the collection of Earned Income Tax.  There will now be one tax collector per county in the Commonwealth of Pennsylvania.  The exception is Allegheny County which will have four collectors, one being the City of Pittsburgh and the other three separated by regions.

Tax Collector:

Effective tax year 2012, Keystone Collections Group has been appointed the Earned Income Tax Collector for Plum Borough as a member of the Southeast Allegheny County Tax Collection District.  You may contact Keystone Collections Group at 724-978-0300 or Keystone Collections Group.

Employer Requirements:

Another requirement of this law is that employers must now deduct earned income tax for their employees.  Your employer will be asking you to complete a Certificate of Residency that you must return to them.  They will be asking for the Borough of Plum’s Political Subdivision Code (PSD) which is 720601 and the tax rate for Plum Borough / Plum School District which totals one percent (1%).  Failure to provide your employer with the proper PSD code will result in lost revenues for the Township and your earned income tax being paid to another taxing jurisdiction.

Self Employed:

If you are self employed, the tax payment is calculated based on your net income.  You must provide copies of your schedules with your final return form. 

Due dates for self employed are as follows:

1st Quarter Form

Due April 15th

2nd Quarter Form

Due June 15th

3rd Quarter Form

Due September 15th

4th Quarter Form

Due Jan 15th of the following year

Final Return Form

Due April 15th of the following year

 Delinquent Earned Income Tax:

The Borough of Plum maintains the collection of delinquent Earned Income Tax.  Delinquent taxes are defined as any year prior to tax year 2012.  The Earned Income Tax Office will notify all delinquent tax payers who may owe delinquent tax or failed to submit proper documentation.

If you are notified that you owe delinquent earned income tax, you will be given thirty (30) days to complete payment.  If you cannot afford to pay the total amount due, the EIT Office could offer a six (6) month payment plan to assist you in paying all monies due.  Payments on an approved payment plan must be made monthly and must be received on or before the last day of each month.  (Interest, penalty, and costs will remain the same on the total amount due as long as the payment plan is followed.)

The taxpayer must sign, date and state current employer(s) on the written agreement and must adhere to all terms therein. If the taxpayer defaults on the payment agreement, interest and penalty charges will be recalculated and the remaining balance MUST be paid in full at that time.  You will only be offered a payment agreement once (Section VIII, Payment Plans For Delinquent Taxes, Plum Borough Rules and Regulations).

If you fail to pay in full, this office will either attach your wages to collect all monies due or file a criminal/civil complaint with the District Justice in our effort to collect the tax due (Section VI, Suit for Collection Of Tax, Plum Borough Rules and Regulations).

If you feel you may owe delinquent earned income tax, please contact the EIT Office at (412) 793-9900 for payment arrangements.  Payments for 2011 and prior, must be submitted to the Borough’s Earned Income Tax office located at 4555 New Texas Road, Pittsburgh, PA 15239.

To make a delinquent earned income tax payment using your credit card, visit Official Payments

AttachmentSize
Ordinance No. 555-95 Establishing Tax.pdf1.32 MB
Ordinance No. 855-12 Establishing Fees on Delinquents.pdf172.89 KB
Residency Certification for PSD Code.pdf156.39 KB