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Earned Income Tax (EIT) Withholding

for Employers

Under the Pennsylvania Act 32 requirements, the withholding of Earned Income Tax (EIT) is mandatory for all Pennsylvania employers.  Employers must withhold the greater EIT tax rate of the employee(s):

  1. Resident tax for where they live
  2. Nonresident tax for where they work

EIT withholding must be done in accordance with the PA Department of Community and Economic Development (DCED) official tax register.  Employers are required to obtain a certificate of residency form from every employee.  Tax rates and jurisdictional codes are available on-line at DCED Municipal Statistics website.
The Earned Income Tax (EIT) rate for the City of Bethlehem is a 1% income tax.  Employers must withhold this tax on the gross earnings of residents and non-residents employed in the City of Bethlehem.

The City of Bethlehem uses a third party servicer for collection of  Earned Income Taxes.  EIT tax returns for the City of Bethlehem  are collected and processed by:

Keystone Collections Group
e-File: https://business.keystonecollects.com
Phone: (724)-978-0328
Hours: Monday - Friday 8:00 am to 4:00 pm