Friday, August 10, 2012

Generally accepted accounting principles

Residents of West Marlborough Township, which just imposed a 0.5% earned-income tax, might want to take a look online to see what they need to do to be in compliance.
It's fairly complicated.
1. If you are an employer in the township, you should have already been withholding earned income tax from your employees' pay based on where they live. Each worker has to fill out a form stating where he or she lives so the proper tax can be withheld. The employer is required to withhold the tax rate of the municipality where it's located or the municipality where the worker lives, whichever is greater.
2. If you work outside of the township, your employer should have been withholding the tax if you work in a municipality that already has the tax in place.
3. If you're self-employed and live in West Marlborough, you now have to submit estimated quarterly payments to the tax collector, Keystone Collections. You can download the forms you need from their website (which is very informative).
At the August township meeting, supervisor Michael Ledyard suggested researching Act 32 and Keystone online, "and maybe check with your accountant."

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