Earned Income Tax

Earned Income Tax filings and due dates

1^st Quarter (January, February, March) April 30
2^nd Quarter (April, May, June) July 31
^3rd Quarter (July, August, September) October 31
4^th Quarter (October, November, December) January 31
Year End Return April 15

Employer Electronic Filing. Payment is due within 30 days after the end of each quarter

EIT rates and PSD Codes To determine EIT rates, PSD Codes, and tax collector or tax officer contact information, use the Address Search.

SB 356 - Became ACT 150 of 2016 on 11/04/16 and took effect on January 1, 2017*. The changes it will implement are:
1. Quarterly filing due dates for self-reporting individuals have been changed to be April 15th, July 15th, October 15th and January 15th of each year.

2. The quarterly filing requirements for Farmers have been clearly defined. If an individual can show that 2/3 of their annual income is derived from Farming Income they are no longer required to file four quarterly estimates. Instead they will be required, for tax year 2017 and forward, to file and pay their estimate for the prior tax year on or before January 15th of the succeeding year or in lieu of that, may file the final return for that period on or before March 1.

3. Requires that a tax administrator make a taxpayer aware of a deficiency in their payment in writing and provide the taxpayer with 30 days to rectify it without penalty being applied. This change does not affect the collector's right to apply interest to the account as of the billing date.

The Earned Income Tax for Cranberry Township is a 1% tax levied on the earned income and net profits of Cranberry Township residents. This tax is collected under authority given by the Local Tax Enabling Act passed by the State legislature in 1965 and by Cranberry Township Ordinance 2005-362. The 1% tax is collected by our appointed collector, Berkheimer Tax Administrator, and distributed equally between the Township and the Seneca Valley School District.

Any resident of Cranberry Township, whether they own their home or rent, is liable for the Earned Income Tax. There are no exemptions because of age or limited earnings. Income subject to the tax includes, but is not limited to, wages, salaries, commissions, bonuses, incentive payments, fees, tips and other compensation received. In addition, all self-employed residents are subject to the tax based on net profits from the operation of a business or profession.

Final Year End Returns must be filed by all persons subject to the tax on or before April 15, whether tax is, or is not due. Documentation such as W-2(s) or proper PA Schedules C, E, F, K-1 or S Corp must be submitted with the tax return to verify reported income.

Every employer with a place of business in Cranberry Township is required to deduct the 1% Earned Income Tax from the compensation of all employees, and on a quarterly basis, file a return, and remit payment to the Tax Collector.

What is Act 32? In 2008 Pennsylvania passed a law, Act 32, that changes the way earned income tax (EIT) is collected and distributed in all of Pennsylvania. The law reforms and standardizes the local earned income tax system. The appointment of collection responsibility falls on countywide committees made up of representatives from local municipalities and school districts.

Act 32 requires uniform withholding of earned income taxes and remittance to a single local collector. The appointed collector for all of Butler County, including Cranberry Township, is Berkheimer Tax Administrator. The Act applies to the earned income taxes levied and collected after December 31, 2011.

Resident Information

Mandatory withholding of Earned Income Tax by all employers
Complete a Residency Certification Form and submit to employer to advise of taxing jurisdiction
Complete and submit a new Residency Certification Form immediately if your address changes
File final year end return with Berkheimer Tax Administrator by April 15 with proper verification
Completing the Residency Certification Form ensures that your tax dollars are distributed to Cranberry Township and the Seneca Valley School District.

Note: This information has been added for the convenience of Township residents. Please complete the remaining sections, print and give to your employer.

Employer Information

Please be advised that Cranberry Township has enacted a tax on non-residents. The effective date of the 1% the non-resident rate was April 1, 2014. The resident rate remains at the rate of 1. 0%.

Additionally, according to Act 32, Employers will be required to withhold the higher of the resident rate of the employee or the new non-resident rate of 1% for employees that work in Cranberry Township (Butler County). The resident rates of your employees can be found at the EIT Register on the DCED Web Site. The changes are effective April 1, 2014 for the 2014 Tax Year. Please refer to the Berkheimer website for additional details and a link to the DCED web site.

Every employer, with a location in Pennsylvania, is required to identify and withhold the correct Earned Income Tax rate from their employees. You must remit and file the withholdings with our office no later than the last day of the month after the end of each quarter. Delinquent fees and penalties may apply for late or incorrect filing.

As the appointed Earned Income Tax collector, Berkheimer is charged with the duty of administering the political subdivision’s taxes. This includes collecting the tax; establish rules and regulations to fairly enforce such tax, and creating accurate tax records and accounts for each taxpayer.

Berkheimer offers businesses the ability to file a variety of taxes including the Earned Income Tax through online filing and electronic upload capability. Refer to Berkheimer to e-file, make a payment, complete registration, and for additional information. To file paper documents, download a form from the website or contact the Customer Care Department, Ph: (866) 701-7206 and the appropriate forms will be sent to you.

Employers must begin to withhold the local EIT from employees on January 1, 2012
Withholding of local earned income tax for all employees is mandatory
Have a form on file for all employees Residency Certification Form
Update forms if employee address changes
Reporting to one single tax collector/agency
Compliance with uniform rules and regulations, forms and reporting requirements
Enter political subdivision codes (PSD) for identification of area and tax rates
Cranberry Township: 100802

Examples of Employer Questions

Example 1

An employee lives in a PA municipality other than Cranberry Township which has a 1% EIT resident rate and works in Cranberry Township which has a 1% EIT non-resident rate.

Are we required to take an additional 1% for Cranberry Township?

No, if the employee lives in PA and already has the tax in the Municipality/School District where they reside; you do not have to withhold an additional 1%. The tax is primarily for anyone that works in Cranberry Township and doesn’t have the EIT in the Municipality where they live in Pennsylvania. If they live in a surrounding state, they would be liable to the non-resident tax for Cranberry.

Example 2

An employee lives in a PA municipality which has a .5% EIT resident rate and works in Cranberry Township which has a 1% EIT non-resident rate.

As the employer, are we required to withhold .5% EIT for associate’s municipality and .5% for Cranberry Township non-resident rate? As an employer, you would be required to withhold the 1% from this associate. Berkheimer would split the 1% between the associates resident municipality and Cranberry.

Is the associate required to file an annual tax return with Berkheimer for his municipality and Cranberry Township? No, the associate is only required to file a local return where they reside.

Example 3

An employee lives in a surrounding state and commutes to Cranberry Township to work.

As the employer, we would be required to withhold 1% EIT for Cranberry Township’s non-resident rate, is that right? Yes, that is correct. The full 1% would then be remitted by Berkheimer to Cranberry as non-resident monies. The full 1% is remitted to the Township, because a School District cannot tax a non-resident

Is the employee who lives in a surrounding state be required to file an annual tax return with Berkheimer? No, there isn’t a requirement for an employee that lives in a surrounding state to file a non-resident return.

Earned Income Tax