PA has enacted new collection system for the employee wage tax (Act 32). Generally it’s 1% or so as stipulated by your local municipality. In most cases, individuals would pay that directly to their local tax collection agency…. Keystone, PAMS, etc. Starting Jan 1, 2012, employers are responsible for witholding the tax from employees paychecks and submitting the witholding to the assigned collection agency. In our region Keystone Collection Group is the designated agency.
Keystone will be used by most, if not all, of the EABA members:
The PA web site that provides specifics to Act 32: