I have a friend who lives in Allentown, where he works two jobs. In the course of preparing his local income tax return, he discovered that neither of them collected the 0.35% hike. In addition to paying the extra tax, he is also being assessed a small penalty ($4.52). He posted about this in more detail at Michael Molovinsky's blog. He asked Allentown to forgive the penalty since the mistake was made by his employers, not him.
This is how the City Without Limits responded. "If your employers did not charge the correct rate which is their responsibility, there is nothing the City can do, you would have to pay the penalty."
If Allentown acts this way with its own residents, how can nonresidents have any confidence they will be treated fairly when their EIT is grabbed?
3 comments:
I moved from Allentown to Bethlehem and I wasn't aware of the EIT rate change. My employer withheld 1% ( I work in Bethlehem but lived in Allentown). I already filed my return. Now I get to make a phone call to figure out if I have to fix this, and if so, what needs to be done. Awesome.
I wonder how other people who don't read your blog will find out about the EIT issue.
I just spoke with a friendly person at Keystone who told me that I can file an amended return reflecting the higher EIT rate for Allentown and mail them a check. She said that if there are any pentalties/fees that I would get a letter from their legal department.
Allentown City Tax: Under Act 205, the City of Allentown withholds 1.35% from all residents and non residents. You may only claim a credit equal to 1% of the wages earned in Allentown; the additional.35% is kept by the City to be applied to their distressed pension liability.
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