§ SOCIAL SECURITY – 6.2% The maximum amount of taxable earnings subject to the Social Security tax is $127,200.00. The tax rate will be 6.2% for employers and employees.
§ MEDICARE – 1.45% on all earnings. The tax rate will be 1.45% for employers and (employees if wages are under the individual threshold amount of $200,000). Note: For earnings exceeding $200,000($250,000 for couples) the additional Medicare Tax will be 0.9 percent.
§ FEDERAL WITHHOLDING – Refer to Publication 15 Tax Tables (Circular E) Employer’s Tax Guide For 2017. Also posted on the IRS website at www.irs.gov under the heading of "Forms and Pubs".
§ LOCAL TAX RATE – Hermitage 2.25%; Sharon 2.25%; Farrell (R) 2.5%, Farrell (N/R 1.8%; West Middlesex 1.0%; Sharpsville 1.0%; South Pymatuning Twp. 1.0%; Greenville Boro (R) 1%, Greenville Boro (N/R) 1%; New Castle (R) 2.1%, New Castle (N/R) 2.0%; Grove City Boro 1%. Website for Local Rates: http://munstats.pa.gov/Public/Default.aspx
(R) = resident (N/R) = non-resident (rates are subject to change)
§ LOCAL SERVICES TAX or LST TAX – Please refer to the following website for the amount of LST Tax deduction for your municipality: http:\munstats.pa.gov/Public/Default.aspx. If an employee is exempt from LST tax, he or she must complete form “Local Services Tax – Exemption Certificate, Application For Exemption From Local Services Tax”. Website for LST Tax Rates: http://munstats.pa.gov/Public/Default.aspx
FORMS THAT ARE REQUIRED BY LAW TO BE FILLED
OUT BY EACH EMPLOYEE AND/OR EMPLOYER:
l RESIDENCY CERTIFICATION FORM – Local Earned Income Tax Withholding. (keep in your records)
Form website: http://www.hab-inc.com/forms/
l FORM W-4 – Remind all employees to submit a new Form W-4 if their withholding allowances or filing status has changed. (keep in your records)
l NEW HIRE REPORTING FORM – All Pennsylvania & Ohio Employers are required to report all newly hired employees. (fax/mail/web address)
OH Employers: https://oh-newhire.com/