Local Services Tax (LST): For the years of 2005 through 2014, employers are required by law to withhold $1.00 per week for a total of $52.00 per year on all employees that are not exempt (for information on exemptions and all other LST questions please see our website). For 2015, the rates increased to withhold $3.00 per week for a total of $156.00 per year. Monies are to be submitted quarterly as follows 1st quarter by April 30, 2nd quarter by July 31, 3rd quarter by October 31 and 4th quarter by January 31. Late payments will incur a penalty of 5% and interest and penalty will be computed at ½% per month. Whoever makes any false or untrue statement on any return required by this article or whoever refuses inspection of the books, records or accounts in his or her custody and control setting forth the number of employees subject to this tax who are in his or her employment or whoever fails or refuses to file any return required by this article shall be guilty of a violation and, upon conviction thereof, shall be sentenced to pay a fine of not more than $600 and costs of prosecution and, in default of payment of such fines and costs, to imprisonment for not more than 30 days. The action to enforce the penalty herein prescribed may be instituted against any person in charge of the business of any employer who shall have failed or who refuses to file a return required by this article.
THE EMPLOYER IS RESPONSIBLE TO FILE AND PAY THESE TAXES IN FULL FOR EACH EMPLOYEE WHETHER OR NOT THEY MAKE COLLECTION FROM THE SALARY, WAGES OR COMMISSIONS PAID TO SUCH EMPLOYEE.