Employer Quarterly / Monthly Return (E1) FAQ (2024)

Employer HAB ID Lookup– Quickly find an existing HAB Employer account

What is the employer’s responsibility?

Employers who maintain worksites in PA or employ individuals who may work from their homes are required to withhold applicable earned income tax from those employees.

Under Act 32, employers are required to withhold the higher of the employee’s resident earned income tax amount (rate of total resident EIT where they reside) vs. the employee’s municipal non-resident earned income tax amount (rate of non-resident EIT where they are employed). Employers are required to obtain information in the Residency Certification Formfor every employee.

Philadelphia Residents

If an employee resides in Philadelphia the employer will need to forward these withholdings to Philadelphia.

Who Must Withhold The Tax?

All employers located in Pennsylvania are required to withhold the local earned income tax for their employees. If the employer is located in a jurisdiction that has not enacted the tax, they must withhold for any employees residing in a jurisdiction that has. If the employer and the employee(s) are located in a jurisdiction that has enacted the tax, the employer must withhold either the rate of the employee’s resident jurisdiction or the non-resident rate of the employer’s jurisdiction; whichever is higher.

Out of State Employers who have employee(s) working and living in Pennsylvania are required to withhold the local earned income tax as outlined above.

Out of State Employers who have employee(s) working outside of Pennsylvania and living in Pennsylvania may voluntarily withhold the PA Local Earned Income Tax at the resident rate. This is referred to as a Voluntary Employer Account.

If you received an Employer Return Reminder (DCEDE11REM) and do not believe you owe the tax,you can respond electronically by clicking here.

Quarterly Filing

Within 30 days after the end of each quarter, the employer must remit withheld taxes and employee information to the tax collector/officer of each worksite-location.

Monthly Filing

Within 30 days after the end of each month, the employer must electronically remit withheld taxes and employee information to a single tax collector/officer where the PA corporate headquarters are located. However if the corporate headquarters are located outside the state, the company may remit withheld taxes from all employees statewide to a tax collection district of their choice upon agreement with that tax collector/officer.

If setting up a Monthly account the employer must file a Notice Of Intent To File Combined Returns with the appropriate tax collector in which the employer is currently filing quarterly with; as well as the tax collector in which the employer is requesting to file combined returns with. Employers must be notified of approval prior to submitting combined monthly returns with one collector. Employers who select to file monthly are required to file and pay online using our Employer E-file Upload process. Please note only ACH Debit payments are accepted. All locations can be included and submitted in one file, where each location in which you are filing for is indicated by a separate employer record for each. The employer records should contain the same corporate address in each record, but the actual PSD number in which each business is located. For more information regarding file formats or e-file, click here or see below.

Your Notice of Intention must contain the following information:

• Your company name
• FEIN
• A contact person with phone number and email address
• The TCD you will be filing with and PSD Code of your corporate office
• A list of all jurisdictions included in your combined filing along with any Berkheimer Account Numbers, if applicable

Please mail all Notice Of Intent To File Combined Returns for Berkheimer to:

HAB-EIT
PO Box 25132
Lehigh Valley, PA 18002

How can an employer set up an account?

The employer can set up an account 3 ways.

1. Electronically via our Employer Registration Form
2. Download Employer Registration Form & Fax (610) 588-5765 Attn: TAXROLL
3. Call (610) 599-3139

The information needed to set up an account is:

• Company name
• Physical address of business location
• Mailing address if different
• PSD in which business is located
• Phone #
• Fax #
• E-mail address
• Federal ID

Where can I find the PSD codes that are required?

A list of all PSD codes can be found on the DCED’s website. Act 32 requires that employers utilize these codes on all withholding reports as of January 1, 2012.

When are the returns due?

Quarterly Filers

Monthly Filers 2023

How can I file a return?

There are 3 ways you can file your quarterly return.

1.Electronic Upload – You can use our format and upload your file using our online service (Monthly Filers are required to file with this method)

2. Data entry – You can fileusing ouronline service

3. You can download an Employer Quarterly form from our website by clicking here

Mail returns to:

Berkheimer Earned Income Tax Administrator
PO Box 25132
Lehigh Valley, PA 18002

How do I file online?

• You will need to create an online account here
• You will need an e-mail address and a password
• Each Month/quarter you will be able to file online and pay online.
• You will also be able to view information on your previous upload.
• You can file for multiple employer accounts using one online account.
• You must pay at the time of filing via an ACH Debit Transaction.

What is the difference between the e-file choices: Report Upload and Data Entry Filing Online?

To upload an Employer Monthly/Quarterly Return.

1. Choose PA Standard Format (EFW2-PA), CSV or Federal Format (with a slight modification)
2. Enter employer information and attach your file.
3. Set up a payment account by entering your banking information and securely pay online.
4. Done.

Preview of the Employer Quarterly Return Upload process (PDF)

To file data entry online.

1. You will need your Berkheimer account number and your Federal Tax ID (EIN) number.

2. On the efile page, enter your account number and your Federal Tax ID number.

3. Follow the step-by-step procedures

4. Enter your banking information to securely pay online

5. Done.

Preview of the Employer Quarterly Return E-File (Data Entry) process

What are the file formats?

You can obtain a copy of our formats below.

• Employer Quarterly Return File Formats
  • CSV File Format
  • Federal File Format
  • PA Standard Format (EFW2-PA)
• W-2 Annual Reconciliation File Formats
  • CSV File Format
  • Federal File Format
  • PA Standard Format (EFW2-PA)
  • SSW2 Format

How should payments be submitted?

1. You can mail your payment with your E1 form to the address listed below.
2. If you are filing online you will be required to pay online at no extra costs.

Mail payments to:

Berkheimer Earned Income Tax Administrator
PO Box 25132
Lehigh Valley, PA 18002

How should an amended (corrected) return be submitted?

An amended return needs to be submitted in writing and include the reason for the amended return, previous payment information and amended information. Need a form? Click here.

Mail amended returns to:

Berkheimer Earned Income Tax Administrator
PO Box 25132
Lehigh Valley, PA 18002

Where can I get a blank W-2?

2021 Form W-2 (irs.gov)

How do I upload my W-2 Annual Reconciliation?

1. Choose PA Standard Format (EFW2-PA), CSV,Federal Format (with a slight modification) or SSW2 Format
2. Enter employer information and attach your file. Note: You will need your Berkheimer account number and your Federal Tax ID (EIN) number.

Preview of the W-2 Annual Reconciliation Upload process

If you have additional/specific questions that are not addressed above, please click on the link to send an inquiry to ourcustomer care department.