The following taxes are withheld from paychecks:

1. Federal withholding as determined from information on the W-4 form.

2. F.I.C.A. (Social Security), at a rate based on percentage and maximum taxable earnings as determined by Federal regulations.

3. Local Earned income tax is deducted from the salary of all employees.  Each employee is being asked to complete a Residency Certification Form.  The form asks for a “PSD” code.  PSD stands for Political Subdivision code, and simply means the jurisdiction you live in (city, borough, township, etc.).  You’ll be provided with the PSD codes you will need in order to complete the form.  Your PSD code will determine the Earned Income Tax rate for your home jurisdiction.  The form will also provide Ursinus College’s PSD code and non-resident EIT rate.  For each employee (other than Philadelphia residents), the two rates will be compared and the local earned income tax withholding will be determined by the higher of the two rates. For Philadelphia Residents, the rate is based on the percentage of taxable earnings as determined by the City of Philadelphia. 

4. Pennsylvania State Income Tax is deducted from the salary of all employees, except those who are residents of New Jersey.

5. Local services Tax (LST), a yearly tax of $52.00. The tax applies to all individuals employed in the Borough of Collegeville, regardless of where you reside. For salaried employees, the tax is prorated and deducted in increments of $4.33 per month. For hourly employees, the tax is prorated and deducted in increments of $2 biweekly pay.