is local services tax deductible
1. Local Services Tax (LST) is replacing the Emergency and Municipal Services Tax (EMST). 2. Effective January 1, 2008, the name of the tax will change to Local Services Tax. 3. The tax, for tax year 2008 forward, becomes a weekly payroll deduction if the total LST rate enacted exceeds $10.00. The tax will now be withheld from the employee each time they are paid on a prorated basis determined by the number of payroll periods in a calendar year. If the total LST rate enacted is $10.00 or less, the tax may be collected in a lump sum. 4.
Answer: (Employee must show proof that $10 was withheld) the rate of the Local Services Tax is $52 for Pittsburgh. If the employee works the rest of the year in Pittsburgh, the employer should withhold $42 since the employee has already had $10 deducted.