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Local Services Tax
Effective January 1, 2008, the Local Services Tax (LST) replaced the Emergency & Municipal Services Tax (EMST).
The Local Services tax is a $52.00 tax levied annually on all persons engaging in an occupation within the geographic boundaries of Cranberry Township, including self-employed persons. The tax applies to all persons who work in Cranberry Township, regardless of whether or not they live in Cranberry Township. Persons who earn less than $12,000 per year are exempt from the tax. (See exemption to the Local Services Tax below).
A person subject to the Local Services Tax shall be assessed a pro rata share of the tax for each payroll period in which the person is engaging in an occupation. The pro rata share of the tax assessed for a payroll period shall be determined by dividing $52.00, the rate of the Local Services Tax, by the number of payroll periods established by the employer for the calendar year. For example, if an employee has 26 pay periods in a year, $2.00 shall be deducted per paycheck ($52 ÷ 26 pay periods = $2.00 per pay).
All employers in Cranberry Township are required to deduct the tax from their employees’ pay beginning with the first payroll period in which the person is engaging in an occupation
Employers are required to remit the Local Services Taxes withheld from their employees and file a Local Services Tax Quarterly Return thirty (30) days after the end of each quarter of a calendar year to Berkheimer Tax Administrator, the Township’s appointed collector for the LST Tax. The Quarterly Return forms are prescribed and available from Berkheimer Tax Administrator
Self-employed persons shall file a return on a form prescribed by the Collector, Berkheimer Tax Administrator, and shall pay the tax directly to Berkheimer Tax Administrator, pro rata ($13.00 per quarter), thirty days after the end of each quarter of a calendar year.
Each person shall pay no more than $52.00 in Local Services Tax in a calendar year, irrespective of the number of political subdivisions within which a person may be employed.
Any person whose total earned income and net profits from all sources is less than $12,000 per calendar year is exempt from the tax. An annual up-front exemption certificate must be completed by the employee and submitted to their employer and to Berkheimer Tax Administrator, as Collector. The exemption certificate shall have attached to it a copy of all of the employee’s last pay stubs or W-2 forms from employment for the year prior. Upon receipt of the exemption certificate and supporting documentation, the employer shall not withhold the tax from the person during the calendar year or remaining calendar year for which the certificate applies.
With respect to a person who claimed an exemption from the Local Services Tax, upon notification to an employer by the person that the person has received earned income and net profits from all sources equal to or in excess of $12,000 in that calendar year or upon an employer’s payment to the person of earned income in an amount equal to or in excess of $12,000 in that calendar year, an employer shall withhold the Local Services Tax from the person as follows:
The employer shall withhold from the person, for the first payroll period after receipt of the notification under the above paragraph, a lump sum equal to the amount of the tax that was not withheld from the person due to the exemption certificate filed by the person, plus the per payroll amount due for that first payroll period.
The following persons are also exempt from the Local Services Tax upon the filing of a completed exemption certificate and supporting documentation with their employer and the Collector, Berkheimer Tax Administrator
Refund claims for any Local Services Tax paid by any person eligible for exemption must be processed through our collector, Berkheimer Tax Administration, using the Local Services Tax refund application available from the Berkheimer website. Employers shall be responsible for retaining a copy of all exemption certificates filed by employees within a given calendar year for a minimum of three (3) years.
Employers who fail to withhold the Local Services Tax from an employee or employees, and do not have copies of the employee exemption certificate or certificates, will be held responsible for the payment of the Local Services Tax as if the tax had been originally levied against the employer.
In the event the employment of a person subject to withholding of the Local Services Tax under this exception is severed in that calendar year, the person shall be liable for any outstanding balance of tax due.
To reach a Berkheimer Tax Administrator Customer Care Specialist for Local Services Tax, call 866-693-8392 .
The Local Services tax is a $52.00 tax levied annually on all persons engaging in an occupation within the geographic boundaries of Cranberry Township, including self-employed persons. The tax applies to all persons who work in Cranberry Township, regardless of whether or not they live in Cranberry Township. Persons who earn less than $12,000 per year are exempt from the tax. (See exemption to the Local Services Tax below).
Employee Withholding
A person subject to the Local Services Tax shall be assessed a pro rata share of the tax for each payroll period in which the person is engaging in an occupation. The pro rata share of the tax assessed for a payroll period shall be determined by dividing $52.00, the rate of the Local Services Tax, by the number of payroll periods established by the employer for the calendar year. For example, if an employee has 26 pay periods in a year, $2.00 shall be deducted per paycheck ($52 ÷ 26 pay periods = $2.00 per pay).
All employers in Cranberry Township are required to deduct the tax from their employees’ pay beginning with the first payroll period in which the person is engaging in an occupation
Employer Remittance of Collected Tax and Reporting of Collection Detail
Employers are required to remit the Local Services Taxes withheld from their employees and file a Local Services Tax Quarterly Return thirty (30) days after the end of each quarter of a calendar year to Berkheimer Tax Administrator, the Township’s appointed collector for the LST Tax. The Quarterly Return forms are prescribed and available from Berkheimer Tax Administrator
Self Employed Persons
Self-employed persons shall file a return on a form prescribed by the Collector, Berkheimer Tax Administrator, and shall pay the tax directly to Berkheimer Tax Administrator, pro rata ($13.00 per quarter), thirty days after the end of each quarter of a calendar year.
Exemptions to the Local Services Tax
Each person shall pay no more than $52.00 in Local Services Tax in a calendar year, irrespective of the number of political subdivisions within which a person may be employed.
Any person whose total earned income and net profits from all sources is less than $12,000 per calendar year is exempt from the tax. An annual up-front exemption certificate must be completed by the employee and submitted to their employer and to Berkheimer Tax Administrator, as Collector. The exemption certificate shall have attached to it a copy of all of the employee’s last pay stubs or W-2 forms from employment for the year prior. Upon receipt of the exemption certificate and supporting documentation, the employer shall not withhold the tax from the person during the calendar year or remaining calendar year for which the certificate applies.
With respect to a person who claimed an exemption from the Local Services Tax, upon notification to an employer by the person that the person has received earned income and net profits from all sources equal to or in excess of $12,000 in that calendar year or upon an employer’s payment to the person of earned income in an amount equal to or in excess of $12,000 in that calendar year, an employer shall withhold the Local Services Tax from the person as follows:
The employer shall withhold from the person, for the first payroll period after receipt of the notification under the above paragraph, a lump sum equal to the amount of the tax that was not withheld from the person due to the exemption certificate filed by the person, plus the per payroll amount due for that first payroll period.
The following persons are also exempt from the Local Services Tax upon the filing of a completed exemption certificate and supporting documentation with their employer and the Collector, Berkheimer Tax Administrator
- Any person who is an honorably discharged veteran with 100% service-connected disability.
- Any person on active (military) duty.
Refund Claims
Refund claims for any Local Services Tax paid by any person eligible for exemption must be processed through our collector, Berkheimer Tax Administration, using the Local Services Tax refund application available from the Berkheimer website. Employers shall be responsible for retaining a copy of all exemption certificates filed by employees within a given calendar year for a minimum of three (3) years.
Employers who fail to withhold the Local Services Tax from an employee or employees, and do not have copies of the employee exemption certificate or certificates, will be held responsible for the payment of the Local Services Tax as if the tax had been originally levied against the employer.
In the event the employment of a person subject to withholding of the Local Services Tax under this exception is severed in that calendar year, the person shall be liable for any outstanding balance of tax due.
To reach a Berkheimer Tax Administrator Customer Care Specialist for Local Services Tax, call 866-693-8392 .
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