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Earned Income Tax

The Earned Income/Net Profits Tax is levied on all salaries, net profits, wages, commissions, bonuses, and other compensation.Earned Income Taxes are collected by Berkheimer Tax Administrator, a private collection service retained by the Township. Berkheimer acts as the tax officer and is responsible for processing all tax returns, collecting taxes due and providing assistance to taxpayers. Berkheimer can be reached at 1-866-701-7206. Forms can be obtained at the website, www.hab-inc.com.

All residents, regardless of age or amount of income, as well as non-residents working in the Township, are taxable. Residents who work outside of Pennsylvania or in Philadelphia must check with Berkheimer for special provisions.

Every resident in the Township must complete and return a Resident Questionnaire within ten days of becoming subject to the tax. Residents returning to the work force after unemployment must re-register within ten days. All residents must file a return by April 15, whether there is tax due or not. Income earned prior to residency is not taxable.

The tax is collected either through withholding by the employer or through direct payments from the taxpayer. If an employer is deducting the tax, the resident should check with their payroll department to be sure that the home address is being properly reported. All employers doing business in the Township must withhold the tax from their employees.

The amount of the tax is equal to 1% of total wages, salaries, tips, compensation that is earned, bonuses, other incentives, net profit from business or professions and net profit from rental.

Only earned income and net profits are taxable. Unearned income such as Social Security, pensions, sick or disability payments and public assistance is not subject to the tax. Income received from rentals, stock, bonds, and insurance are subject to the tax only when the person is licensed as a dealer or actively engaged in these activities for profit.