Frequently Asked Questions

Am I required to include local earned income tax withholding on my W2s?

Am I required to withhold the local services tax (LST) from payroll?

An employee of our business lives and works in a 0% local earned income tax rate location but we withheld them incorrectly, how do they get their money back?

Are any business activities excluded from the business privilege and mercantile tax?

Are employers required to file payroll taxes quarterly with the tax officer?

Are filing or payment extensions available for business privilege/mercantile tax?

Are new hires during the year subject to the full local services tax (LST) if the annual rate is $10 or less?

Are penalties imposed on employers who do not withhold, file and pay local tax from payroll?

Are postmark dates accepted when applying discount rates to my real estate bill?

Are separate political subdivisions (PSD) codes for the employee residence and workplace location necessary?

Are there any allowable exclusions or deductions when calculating “gross receipts”?

Are there any fines or penalties for not filing or paying the business privilege tax?

Are there income exemptions to the local services tax (LST)?

Can business privilege/mercantile tax overpayments be carried over to the next year?

Can I download the business privilege and/or mercantile tax return?