Keystone Collections Group is the appointed Earned Income Tax (EIT) collector for all Chester County municipalities. Residents who are self-employed or who work out of state or in Philadelphia will continue to be responsible for making estimated quarterly EIT payments. Forms are available at Keystone's web site under Taxpayer Resources or by clicking here (you'll need to scroll down to access the quarterly voucher forms).

2012 tax returns are due by April 15, 2013.

Earned income of less than $12,000 per year is exempt from Pocopson’s EIT. However, employers must withhold the 0.2% up front, and then those who earned less than $12,000 may request a refund on their local tax returns the following year. The exemption, which mirrors that of the Local Services Tax, applies specifically to Pocopson. If you earn less than $12,000 but work in a municipality that does have an EIT, you will likely still be subject to their non-resident EIT rate on the full amount of your pay.
 

Act 32 requires that all Pennsylvania employers (with the exception of those in Philadelphia) withhold the local Earned Income Tax (EIT) for employees beginning on January 1, 2012. Chester County was an early implementer of Act 32, so many Pocopson residents saw EIT withholding begin in January 2011.

Your employer may ask you to complete a Residency Certification form to identify the municipalities and school districts for which the EIT is to be collected. The Residency Certification form include spaces for "Resident PSD Codes" (which means political subdivision codes) and "Total Resident EIT Rate."

 Pocopson's PSD code is 151105

Pocopson's Resident EIT Rate is 0.2% (or 1/5 of 1%).
 

If the municipality in which you work has a higher EIT rate that Pocopson (most do), your employer will withhold at that higher rate. Keystone, as tax collector, will distribute the tax appropriately. For example: You work in West Goshen Township, which has a non-resident EIT rate of 1%, and earn $50,000/year. Your employer will withhold $500 for the year. Keystone will allocate $100 to Pocopson and $400 to West Goshen.

For EIT rates, PSD Codes and tax collector info for an address, use http://munstatspa.dced.state.pa.us/FindLocalTax.aspx. For more information on Act 32, go to http://www.newpa.com/node/6710.