Earned Income Tax Withholding Change Effective 01/01/2009

Current earned income tax, EIT (local tax) regulations require employers to withhold EIT from their employees at either the resident or non-resident rate based on where your employer is located.  ASI Employer Solutions has always withheld the EIT based on the employee’s resident rate because it is usually more beneficial to you to withhold that way.  Effective January 1, 2009, we will no longer be able to withhold EIT based on your resident rate.  We will have to withhold based on current regulations.  This change will affect employees whose resident tax rate is higher or lower than the employer’s location tax rate.  It will also affect those employees that work in a location that does not have EIT.  If your work location does not have EIT, we will no longer withhold EIT from you.  If you would like to compare tax rates please go to the following website:  http://munstatspa.dced.state.pa.us/FindLocalTax.aspx

If you have questions or comments please email us at: finance@ASIpeo.com