Change
in Earned Income Collection
All
residents of the West Chester Area School District
are assessed a 1% earned income
tax, or EIT. Half
of this tax (0.5%) supports the district’s
educational programs and services, while the
other half (0.5%) goes to the individual municipalities
within the district.
For most residents, the EIT
is deducted from their paycheck and forwarded
by their employer to Berkheimer
Associates, who are under contract to collect
and distribute it. Some residents, however, are
self-employed,
and others are employed by firms that do not
automatically deduct the EIT. Many of these residents
calculate
and pay the EIT in one lump sum at the end of
the year. Their state and federal taxes, however,
are
either withheld by their employer or paid on
a quarterly basis.
To bring the EIT more in line
with federal and state practices, Berkheimer
will now be collecting
quarterly installments instead of one annual
lump sum payment. As of January 1, 2007, individuals
who do not have their EIT withheld by their employer
or are self employed will be required to file
and
remit it on a quarterly basis. This requirement
is in accordance with the law governing local
earned income taxes.
Individuals who fail to
comply with the quarterly requirement will be
subject to interest and penalties
on unpaid amounts.
The due dates for quarterly
EIT filings are as follows:
- 1st Quarter (January
1 through March 31) - due April 30
- 2nd Quarter
(April 1 through June 30) - due July 31
- 3rd Quarter
(July 1 through September 30) - due October
31
- 4th Quarter (October 1 through December 31)
- due January 31
In early January, Berkheimer
Associates will send a notification of the
change in collections
to
all self filers of EIT on record. In March
of 2007, Berkheimer Associates will mail
estimated payment
coupons to self filers for their use when
remitting quarterly payments. Questions should
be directed
to Berkheimer Associates at 610-588-0965
or 866-701-7205
or check the website at:
www.hab-inc.com/content/eit.htm
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