Thursday, May 14, 2009

Earned Income Tax

As you may know the state is looking to eliminate the multi-jurisdictional aspect of collecting Earned Income Taxes. Each School District as well the Municipalities in which they operate can have separate people/organizations collecting their Earned Income Tax.

This of course creates inefficiencies and costs that could be saved by going to a state or at least County by County tax collector system.

In the next several months you will start to see this change finally take place. As mandated by Governor Rendell, each county in Pennsylvania will go to some type of single collection system for both the County governments and the local School Districts.

The goal is to stream line the number agencies collecting Earned Income to a single collection agency. This will hopefully promote cooperation between the local government agencies and the School Districts and eliminate some of the over head costs and red tape.

The difficult task will be to pick a collection agency that makes at least the majority of brokers happy and to make sure that the cost structure generates the savings it should by having such a stream lined operation.

The goal is to have the operation up and running by 2011 to meet the Governor's time line.

1 Comments:

Blogger amom said...

Our school district and our municipality currently have different EIT collectors. It makes it difficult and confusing for our residents. (It doesn't help that the district collector is non-cooperative with the municipality.) I am SO looking forward to consolidation.

May 15, 2009 at 8:29 AM  

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