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1. Who is subject to Local Services Tax?

Any person who is gainfully employed and stationed, headquartered (except for payroll purposes only) and/or performing work or services from an office or other fixed place of business in Shaler Township for any period of time in the calendar year.

2. What is the Local Services Tax rate?

The rate is $52 per calendar year.

3. What is the definition of income from all sources?

Income from all sources is defined as the total earnings and net profits from all sources within the municipality for the calendar year in which the Local Services Tax is levied.

4. How is the tax paid?

The tax is withheld by the employer. The employer must take $52 divided by the number of pay periods anticipated for each employee in the calendar year and withhold that prorated portion in each pay period.

5. What if I leave my employer before the end of the year?

The employer is only required to withhold the prorated amount for each pay period.

6. What if I start working after January 1?

The employer is required to withhold on a prorated basis. The employer must take $52 divided by the number of pay periods anticipated for each employee in the calendar year and withhold that amount in each pay period.

7. Is there an exemption level?

Yes. Any person who earns less than $12,000 in a calendar year in Shaler Township is exempt from the tax.

8. Do I have to pay the tax if I anticipate total earnings of less than $12,000?

No. You can complete and submit an Exemption Certificate to both your employer and Keystone Collections.

9. What happens if I claim an exemption and earn more than $12,000?

Your employer will be required to "catch up" in the pay period in which you reach $12,000 with that employer. The LST withheld from each paycheck in which you reach $12,000 should total $52 divided by the number of pay periods in which you anticipate working in the calendar year, then multiplied by the number of pay periods worked to date.

10. Is my employer required to withhold the Shaler tax if I already paid another taxing body?

No. Your employer may choose to participate in a program that allows them to accept documentation from you regarding payment in another taxing body. Your employer would be required to forward this information to Keystone Collectins. You would be required to provide your employer with appropriate documentation which may include a dated pay stub, a receipt provided by your previous employer, or a receipt provided by another taxing body.

Please note: If the amount paid to another taxing body is less than $52, your employer will be responsible for withholding the difference between the Township's $52 rate and the amount you paid to the other taxing body.

11. What if my employer does withhold the tax even though I have paid somewhere else?

You can apply for a refund directly with Keystone Collections. You must complete a refund request form and attach the appropriate documentation.

12. Do I have to wait until the end of the year to apply for a refund if I paid a total of more than $52 during the year?

No. You can apply for a refund immediately. You should apply for a refund to the taxing district to which you last paid. If you apply for a refund it will be issued within 75 days of receipt of the tax from your employer. Employers are required to forward all monies withheld each quarter to Keystone Collections by the last day of the month immediately following that quarter.

13. Are there any exemptions from the tax?

Yes. Any person who has served in any war or armed services conflict in which the United States was engaged in and has a honorable discharge is exempt from the tax. Other exemptions apply, please see the rules and regulations for all eligible exemptions.

14. I work out of my home. My company office is located in another state. My home serves as my office. Am I required to pay the tax?

Yes. The tax is levied upon the privilege of engaging in an occupation in the Township. You must pay the tax directly to Keystone Collections.