Pennsylvania Act 32/Local Earned Income Tax
PA Act 32 of 2008 is effective on January 1, 2012. PA Act 32 restructures how local governments and school districts collect local income tax in Pennsylvania. This Act requires Carnegie Mellon to collect Earned Income Tax (EIT) on behalf of its employees for the local municipality in which they live or work beginning January 2012. Student employees are impacted.
Students who are employed at Carnegie Mellon in Pennsylvania are required to take action to ensure that the amount of tax withheld is correct and that the tax is disbursed correctly according to the tax residency address. All employees who live in or work in the state of Pennsylvania are required to complete a Local Earned Income Tax Certification form. If you don't complete and sign the form, your local tax withholding may be incorrect.
To verify or update your address information and complete the form, log into HR Connection. Click on the 'Local Earned Income Tax Certification' form in the 'Transactions Requiring Your Action' section or click on the 'Demographics' link on the left side of the page and follow the instructions. If you don't know your HR Connection password, click on the 'Forgot Password' link next to the 'Password' box and follow the on-screen instructions.
Questions? View a complete list of Frequently Asked Questions (FAQs).
Determining the tax residency address can be confusing for students due to the varied nature of student permanent addresses, foreign residency status, definition of tax residency, etc. The FAQs are meant to address the various questions student employees may have related to PA Act 32.
Failure to complete key actions may result in Local Earned Income taxes being withheld inaccurately. The recourse for students who complete the requirements late or after employment has begun will be to file for a refund during the annual tax filing cycle (in April of the following year, for most people.) Students are strongly encouraged to comply now or when newly employed at Carnegie Mellon.