ARTICLE IV
COLLECTION AT SOURCE
(Applicable to Cities, Boroughs, Towns and Townships)
SECTION 401. REGISTRATION OF EMPLOYERS
A. Every employer within the Approving Subdivision who employs one or more persons, other than domestics, on a salary, wage, commission or other compensation basis shall, on or before April 15, or within fifteen (15) days after becoming an employer, register with the Income Tax Officer his name and address and such other information as the Income Tax Officer may require.
B. Employers required to register include all employers who are residents of the Approving Subdivision and all
other employers required to withhold the tax pursuant to Section 402.
SECTION 402. EMPLOYERS REQUIRED TO WITHHOLD
A. Every employer within the Approving Subdivision who employs one or more persons, other than domestics, on a salary, wage, commission or other compensation basis shall deduct at the time of payment thereof, the tax imposed by the Ordinance on such compensation. Such employers, who withhold a total of $50.00 or more during the first or second month of any calendar quarter, may remit or may be required by the Income Tax Officer to remit the actual amount of the tax so withheld to the Income Tax Officer on or before the fifteenth (15th) day of the month during which the tax was deducted.
B. An employer who is engaged in a business activity within and outside the Approving Subdivision shall withhold from resident and nonresident employees who work for such employers within the Approving Subdivision even though the payroll records and place of payment are not in the Approving Subdivision.
C. According to Section 9 of Act No. 511, Act of December 31, 1965, Employers are not required to withhold until
July 1, 1977, or when the ordinance appears in the Registry of the Department of Internal Affairs. Therefore, an
employer may or may not withhold as he or it chooses without incurring a liability for taxes not withheld. If an
employer chooses not to withhold, then the employee must file a Declaration of Estimated Tax and make quarterly
payments as indicated in Section 214.
SECTION 403. WITHHOLDING BY NONRESIDENT EMPLOYERS AND EMPLOYERS OF DOMESTICS
Nonresident employers engaged in a business, trade, profession or other activity located outside of the Approving
Subdivision and employers (whether or not resident in the Approving Subdivision) of persons performing domestic
services are not required to withhold the tax. Any such employer may, however, voluntarily agree with his employee
to withhold the tax and transmit it to the Income Tax Officer of Harrisburg Approving Subdivision.
SECTION 404. WITHHOLDING TAX FROM DRAWING ACCOUNTS
If the amount received by an employee as a drawing account exceeds the salaries or commissions earned, the tax
shall be withheld on the amount received. If the employee subsequently repays any amount not in fact earned, the
tax shall be adjusted accordingly.
SECTION 405. LIABILITY OF EMPLOYEE
A. If an employer required to withhold tax does so withhold, the amount withheld shall constitute in the hands of such employer a trust fund held for the account of the Approving Subdivision as beneficial owner thereof and the employee from whose compensation such tax was withheld shall be deemed to have paid such tax. The provisions of this paragraph are not applicable in the case of an employer who is not required to withhold tax (see Section 403).
B. The failure of any employer to withhold the tax shall not relieve the employee from payment of such tax, where payment has not been secured from the employee.