Earned Income / Local Service Tax

Earned Income Tax

Your employer is required by Pennsylvania state law to withhold earned in for all employees. Check your most recent pay stub and verify that the Earned Income Tax is being withheld. If it is not being withheld, immediately contact your payroll department to have this corrected. Failure to withhold taxes by employers can result in fines, as well as, penalty and interest being levied.

As of the tax year 2012, Keystone Collections is the local earned income tax collector.

Tax Codes

• Canon McMillan’s School Code is 6306
• Cecil Township’s Public School District (PSD) Code is 630602

Tax Years Prior to 2011

For tax years 2011 and prior, the collector is Jordan Tax Service, Inc.

Local Service Tax

The Local Services tax is $52 a year for everyone who works in Cecil Township, including self-employed persons.

Rates

The combined rate for Cecil Township and the Canon-McMillian School District is $52 annually. Of this amount, $47 is levied by Cecil Township and $5 is levied by the Canon-McMillian School District.

An individual working in Cecil Township and subject to the Local Services Tax shall pay a pro rata share of the tax each payroll period. The pro rata share of the tax to be paid each payroll period shall be determined by dividing $52, the combined rate of the Local Services Tax, by the number of payroll periods established by the employer for the calendar year. For example, if an employer has 26 pay periods in a year, $2 ($52/26 periods) shall be deducted from each and every pay. 

Tax Collection

Each individual shall pay no more than $52 in Local Services Tax in a calendar year, irrespective of the number of areas within which a person may be employed. This tax is paid to the municipality in which you are employed.

This tax is collected by Keystone Collections.