(A) A person seeking to claim an exemption from the local services tax may annually file an exemption certificate with the Township Secretary and with the person’s employer affirming that the person reasonably expects to receive earned income and net profits from all sources within the township of less that $12,000 in the calendar year for which the exemption certificate is filed. The exemption certificate shall have attached to it a copy of all of the employee’s last pay stubs or W-2 Forms from employment within the township for the year prior to for which the employee is requesting to be exempted from this tax. Upon receipt of the exemption certificate and until otherwise instructed by the township or except as required by division (B) below, the employer shall not withhold the tax from the person during the calendar year or the remainder of the calendar year for which the exemption certificate applies. Employers shall ensure that the exemption certificate forms are readily available to employees at all times and shall furnish each new employee with a form at the time of hiring.
(B) With respect to a person who claimed an exception for a given calendar year from this tax, upon notification to an employer by the person or by the township that the person or by the township that the persons has received earned income and net profits from all sources with the township equal to or in excess of $12,000 in that calendar year, or upon an employer’s payment to the person of earned income with the township in an amount equal to or in excess of $12,000 in that calendar year, an employer shall withhold this tax from the person under division (C) below.
(C) If a person who claimed an exemption for a given calendar year from this tax becomes subject to the tax for the calendar year under division (B) above, the employer shall withhold the tax for the remainder of that calendar year. The employer shall withhold from the person, for the first payroll period after receipt of the notification under division (B) above, a lump sum equal to the amount of the tax that was not withheld from the person due to the exemption claimed by the person under this division (C), plus the per payroll due for the first payroll period after receipt of the notification under division (B) above. The amount of tax withheld per payroll period for the remaining payroll periods in that calendar year shall be the same amount withheld for other employees. In the event the employment of a person is subsequently served in that calendar year, the person shall be liable for any outstanding balance of the tax due and the township may pursue collection under this subchapter.
(D) Except as provided in division (B) above, it is the intent of this division (D) that employers shall not be responsible for investigating exemption certificates, monitoring tax exemption eligibility, or exempting any employee from this tax.
(Ord. 2007-7, passed 11-27-2007)