Under section 512(a)(5) of the act (53 P.S. §
6924.512(a)(5)), an employer
with more than one place of business in more than one tax collection district
may elect to remit the tax withheld from all of its employees in all of its
work locations in this Commonwealth for the preceding month and file, on or
before the last day of the month succeeding the month for which the return
under section 512(a)(4) of the act is due, one single combined monthly return
as follows:
(1) To be eligible to file
combined returns and make combined payments, the employer shall file:
(i) A notice of its intention to file
combined returns and make combined payments with the tax officer for each place
of employment at least 1 month prior to filing its first combined return or
making its first combined payment.
(ii) Its combined return and remit its
combined payment electronically on a monthly, rather than quarterly,
basis.
(2) An employer
with payroll operations located within one tax collection district shall file
the combined return and remittance of earned income taxes withheld to the tax
officer in that tax collection district. An employer with payroll operations
located within more than one tax collection district shall file the combined
return and remittance of earned income taxes withheld to the tax officer of any
tax collection district in which any of the employer's payroll operations are
located. If the tax officer declines in writing to receive the combined filing,
the employer may choose to file a combined return with any tax officer in a tax
collection district where the employer maintains a place of business employing
one or more employees.
(3) An
eligible employer's election to file combined returns and make combined
payments does not alter an employee's workplace for purposes of nonresident tax
liability.
(4) An employer may not
select a tax officer to receive combined tax returns and remittances more
frequently than on a tax year basis. The selection of a tax officer shall be
made at the time of filing the tax return.
(5) If an employer outsources payroll
functions to a payroll processing company, the employer's place of business
that forwards payroll data to the company is deemed the employer's payroll
operations location. The location of the payroll processing company is not the
employer's payroll operations location.
