University Times

Expect to see $52 less in your paycheck for the pay period ending Jan. 31.

As an employer located in the city of Pittsburgh, the University must collect a new city tax of $52 from all of its employees on the Oakland campus, according to Dan Jeffreys, payroll director at Pitt. The tax must be paid regardless of income by the end of this month, according to provisions in new tax legislation approved by the state as part of Pittsburgh’s budget bailout process.

The new annual Emergency and Municipal Services Tax (EM tax) of $52 replaces the $10 annual occupation tax.

Pitt employees who earn less than $12,000 a year — mostly students and other part-time workers — will be entitled to a $42 refund from the city. The city will retain $10 of the $52 dollar tax regardless of worker income. The refund will not be available until next year – when workers in the city have proof — W-2 forms, etc. — that their income did not exceed $12,000.

About 7,0000 employees (approximately 5,600 students and 1,400 part-time workers) earn less than $12,000 a year at the University, according to Jeffreys. He noted that the tax is based on earnings, not base salary.

For example, if an employee’s salary is $10,000 with an additional $3,000 in overtime, that employee would not qualify for the refund because earnings would total $13,000, he said. “Also, at the end of the year, the city will be looking at all earnings to determine eligibility, not just by one employer. So, if the student earns $8,000 at the University but works a summer job for $6,000, the combined earnings is over the maximum.” Workers who hold two jobs in the city will only have to pay the $52 tax once. But it will be up to the worker to prove that the tax was paid.

To apply for a refund, employees must fill out an EM tax refund application form, which is available through the city tax office, and provide the requested proof of the total earnings for 2005, including copies of all W2 forms, a federal income tax form and proof of EM tax payment.

Information on the tax is available on the Pittsburgh web site (www.city.pittsburgh.pa.us) by following the link to the Finance Department, tax bulletin.

— Mary Ann Thomas