Peacock Tales • Summer 2011

Attention: Employers

You Must Begin Steps to Comply with New Withholding Requirements

As reported in our April 2009 edition, under a Pennsylvania law known as Act 32, significant changes will take effect on January 1, 2012 to employers’ withholding responsibilities. Every employer having a place of business in Pennsylvania must register with its local tax collection district which is a county-wide district. Next, employers must collect from every employee a Certificate of Residency form required by the state.

Once Act 32 becomes effective in January, every employer MUST deduct from payroll the employee’s resident tax (where the employee lives) or the employee’s nonresident tax (where the employee works), whichever is greater. This differs from prior law where certain withholding was voluntary.

More information is available through the Pennsylvania Department of Community and Economic Development. For Washington County employers, the forms are available on the “Employer Resources” web page at


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