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

No. If the annual tax rate is higher than $10, the tax is proportionally assessed during each payroll period. For example, if the annual rate is $52 and you pay your employees every two weeks, you would withhold $2 from payroll each payroll period, starting with the employee’s first payroll period that year.