Capital Tax Collection Bureau www.captax.com Central Dauphin Division 425 PRINCE ST HARRISBURG PA 17109-1734 (717) 545-2791 Phone (717) 545-3028 Fax
Harrisburg Division 2301 N 3RD ST HARRISBURG PA 17110-1893 (717) 234-3217 Phone (717) 234-2962 Fax
Carlisle Division 19 S HANOVER ST STE 102 CARLISLE PA 17013-3336 Phone (717) 243-3725 Fax (717) 243-9224
June 2005 Dear Taxpayer, Our records indicate you are a resident of the Greenwood School District. In November 2004, voting residents of this school district passed a ballot referendum that eliminated the school’s occupation assessment tax, and replaced the lost revenue with an increase in the school’s earned income tax (EIT). Because of this, the combined (school and municipal) EIT rate increases to 1.75% from 1.00% starting July 1, 2005. If, as an employee, your work place is located in the jurisdiction of the Greenwood School District, your employer is required to withhold the increased tax rate starting with your first pay after June 30, 2005. We suggest you take this letter to your employer to ensure that the correct EIT rate will be withheld from your pay. We also suggest that you check your first pay stub after June 30, 2005 to verify the correct increased withholding. If you work outside the jurisdiction of the Greenwood School District your employer is not required to withhold the increased tax rate, but may do so voluntarily for your benefit. Where the proper amount of tax is not withheld, most taxpayers will have to pay the tax directly to our Bureau, on a quarterly basis, using our Forms 521. If you require such forms, (…Continued on reverse) -------------------------------------------------
Cut on this dotted line
---------------------------------------------------
Request/Authorization Form for Increased local EIT Withholding (To be completed by taxpayer and submitted to his/her employer(s). Make copies before completing if you have multiple employers) Note: You may also want to submit this to your employer as a reminder of a required rate change when you both live and work in Greenwood School District.
I hereby authorize my employer, ________________________ to withhold 1.75% (.0175) of local earned income tax from my pay starting after June 30, 2005. I am a current resident of the municipality of _________________________________ (borough or township), which is located within the Greenwood School District, in Perry and Juniata Counties. Name: Street: City, State & Zip:
SSN: Date: Signature:
(…Continued from reverse) please contact our office or visit our web site at www.captax.com. Such payments, not received timely, will be subject to interest and penalty. We suggest you take this letter to any employer you have outside the Greenwood School District jurisdiction and request that they withhold the new tax rate starting with your first pay after June 30, 2005. A Request/Authorization form for this purpose has been provided at the bottom of this letter. We also suggest that you check your first pay stub after June 30, 2005 to verify the correct increased withholding. If you are self-employed, make sure to increase your quarterly payments to our Bureau starting with the third (3rd) quarter of 2005 (payment due October 31, 2005). Interest and penalties will be applied to payment deficiencies. Please contact us or visit our web site at www.captax.com if you need our Form 521 to make these payments. When filing your annual EIT return for the 2005 tax year (due April 17, 2006) you will have to report your earned income and/or net profit in a split manner (i.e., earnings received January 1 through June 30, 2005 and earnings received July 1 through December 31, 2005). Some employers may split your local wages in this manner on your 2005 W-2, but we strongly suggest you keep your last pay stub in June 2005 to aid you in splitting your wages on your 2005 tax year local return. Please keep in mind that almost every employee is what is termed a “cash basis taxpayer”. This means that your pay is taxable when you (constructively) “receive” it, not necessarily when you “earn” it. This is why your entire first pay paid after June 30, 2005 would be taxable at the new tax rate, regardless of whether all or a portion of it was actually earned prior to July 1, 2005. If you or any of your employers have any questions, please phone us at (717) 234-3217 or 1 (800) 273-2040. -- Capital Tax Collection Bureau
