What does s125 mean on w2?
What does s125 mean on w2?
In the context of Section 125, “pre-tax” means that a deduction is exempt from Federal Income Tax Withholding, Social Security and Medicare Taxes.
What does PA LST mean on w2?
Local Services Tax
LST = Local Services Tax.
How much is the LST tax in Harrisburg PA?
Pennsylvania Cities Local Services Tax (LST) Information
| City | State/City Codes | Annual Tax Amount |
|---|---|---|
| Hanover Township | 42/3470 | $52 |
| Harrisburg | 42/3500 | $52 |
| Horsham Township | 42/3740 | $52 |
| Lancaster | 42/4180 | $52 |
What are the exemptions for the local services tax ( LST )?
Political subdivisions that levy an LST at a rate that exceeds $10 must exempt from the tax taxpayers whose total earned income and net profits from all sources within the political subdivision is less than $12,000. Upfront Exemption. Employers are required to stop withholding the LST if an employee provides an exemption certification.
When to stop withholding local services tax ( LST )?
Employers are required to stop withholding the LST if an employee provides an exemption certification. Installment Collection. If the combined rate of a municipal and school LST exceeds $10, it must be assessed and collected in installments based on payroll periods. Timing.
When does a local services tax become effective?
Timing. An LST imposed for the first time becomes effective on January 1 of the year following enactment of an ordinance authorizing the tax. The same holds true for an ordinance which changes the tax rate.
How much income do you have to make to be exempt from LST?
Mandatory Low-Income Exemption. Political subdivisions that levy an LST at a rate that exceeds $10 must exempt from the tax taxpayers whose total earned income and net profits from all sources within the political subdivision is less than $12,000.
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