Compiled by Robert W. Ditmer,
CPP
The School District of Pittsburgh
The School District of Pittsburgh includes the entire City of Pittsburgh as well as Mount Oliver Borough. Residents of the District are subject to a 2% EIT on all earned income. The City of Pittsburgh also has a 1% municipal EIT. The Borough of Mt. Oliver levies its own municipal EIT.
If a Pennsylvania employer has employees that work outside of Pittsburgh but who live in the School District of Pittsburgh, the employer must withhold the 2% tax from the employees’ wages and remit it to the School District. Employers have the option of withholding the 1% City of Pittsburgh EIT as well. If the employer withholds the Pittsburgh EIT of 1%, then the employer should not withhold any other local EIT unless the local EIT on non-residents is greater than 1%. In that case, the employer must withhold the entire local EIT for the municipality where the employee works and that municipal tax collector will forward the 1% tax to the City of Pittsburgh.
Employers who have employees who live in Mt. Oliver, but are not located in Mt. Oliver, should not withhold the EIT for Mt. Oliver unless the business is located in another municipality that imposes the tax. The withheld taxes would then be forwarded to the Mt. Oliver tax administrator by the local tax administrator.
Employers who have a business location in the City of Pittsburgh are obligated to withhold the 1% City tax only if the employee does not live in a jurisdiction that imposes the EIT. That means that all out-of-state residents who work in the City of Pittsburgh are subject to the 1% tax. So if an employee lives in a jurisdiction that imposes an EIT of 1% or more, then the employer should not without any Pittsburgh taxes. If an employee lives in a jurisdiction that has a tax rate of less than 1%, only the difference should be withheld and remitted to the City of Pittsburgh. Please note: The City of Pittsburgh does not forward collected taxes to other municipalities, so employees who live in other jurisdictions that impose the tax at a lower tax rate are responsible for paying the tax themselves.
Employers who are obligated to collect the Pittsburgh EIT should contact the City of Pittsburgh Department of Finance directly.
City of Pittsburgh Department of Finance
200 City-County Building
414 Grant Street
Pittsburgh, PA 15219-2476
412-255-2582
www.city.pittsburgh.pa.us/finance
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