The following words and phrases, when used in
this article, shall have the meanings ascribed to them in this section,
except where the context clearly indicates or requires a different
meaning.
ASSOCIATION
A partnership, limited partnership or any other unincorporated
group of two or more persons.
BUSINESS
An enterprise, activity, profession or any other undertaking
of an unincorporated nature conducted for profit or ordinarily conducted
for profit whether by a person, partnership, association or any other
entity.
CORPORATION
A corporation or joint-stock association organized under
the laws of the United States, the Commonwealth of Pennsylvania or
any other state, territory, foreign country or dependency.
DOMICILE
The place where one lives and has his permanent home and
to which he has the intention of returning whenever he is absent.
Actual residence is not necessarily domicile, for domicile is the
fixed place of abode, which, in the intention of the taxpayer, is
permanent rather than transitory. Domicile is the place in which a
man has voluntarily fixed the habitation of himself and his family,
not for a mere special or limited purpose, but with the present intention
of making a permanent home, until some event occurs to induce him
to adopt some other permanent home. In the case of businesses or associations,
the domicile is that place considered as the center of business affairs
and the place where its functions are discharged.
EARNED INCOME
Salaries, wages, commissions, bonuses, incentive payments,
fees, tips and other compensation received by a person or his personal
representative for services rendered, whether directly or through
an agent, and whether in cash or in property; not including, however,
wages or compensation paid to persons on active military service,
periodic payments for sickness and disability other than regular wages
received during a period of sickness, disability or retirement or
payments arising under workmen's compensation acts, occupational disease
acts and similar legislation, or payments commonly recognized as old
age benefits, retirement pay or pensions paid to persons retired from
service after reaching a specific age or after a stated period of
employment or payments commonly known as "public assistance," or unemployment
compensation payments by any governmental agency or payments to reimburse
expenses or payments made by employers or labor unions for wage and
salary supplemental programs, including but not limited to programs
covering hospitalization, sickness, disability or death, supplemental
unemployment benefits, strike benefits, social security and retirement.
EMPLOYER
A person, partnership, association, corporation, institution,
governmental body or unit or agency or any other entity employing
one or more persons for a salary, wage, commission or other compensation.
GOVERNING BODY
The Supervisors of the Township of Middle Smithfield, Monroe
County, Pennsylvania.
INCOME TAX OFFICER or OFFICER
Person, public employee or private agency designated by governing
body to collect and administer the tax on earned income and net profits.
NET PROFITS
The net income from the operation of a business, profession,
or other activity, except corporations, after provision for all costs
and expenses incurred in the conduct thereof, determined either on
a cash or accrual basis in accordance with the accounting system used
in such business, profession or other activity, but without deduction
of taxes based on income.
NONRESIDENT
A person, partnership, association or other entity domiciled
outside the taxing district.
RESIDENT
A person, partnership, association or other entity domiciled
in the taxing district.
TAXPAYER
A person, partnership, association or any other entity required
hereunder to file a return of earned income or net profits or to pay
a tax thereon.
If for any reason the tax is not paid when due,
interest at the rate of 6% per annum on the amount of said tax and
an additional penalty of 1/2 of 1% of the amount of the unpaid tax
for each mouth or fraction thereof during which the tax remains unpaid
shall be added and collected. Where suit is brought for the recovery
of any such tax, the person liable therefor shall, in addition, be
liable for the costs of collection and the interest and penalties
herein imposed.
The officer shall demand, receive and collect
from all corporations, political subdivisions, associations, companies,
firms or individuals employing persons owing delinquent earned income
taxes or whose wife owes delinquent earned income taxes, or having
in possession unpaid commissions or earnings belonging to any person
or persons owing delinquent earned income taxes or whose wife owes
delinquent earned income taxes, upon the presentation of a written
notice and demand certifying that the information contained therein
is true and correct and containing the name of the taxpayer or the
husband thereof and the amount of tax due. Upon the presentation of
such written notice and demand, it shall be the duty of any such corporation,
political subdivision, association, company, firm or individual to
deduct from the wages, commissions or earnings of such individual
employees then owing or that shall within 60 days thereafter become
due or from any unpaid commissions or earnings of any such taxpayer
in its or his possession or that shall within 60 days thereafter come
into its or his possession a sum sufficient to pay the amount of the
delinquent earned income taxes and costs shown upon the written notice
or demand and to pay the same to the officer within 60 days after
such notice shall have been given. Such corporation, political subdivision,
association, firm or individual shall be entitled to deduct from the
moneys collected from each employee the costs incurred from the extra
bookkeeping necessary to record such transactions, not exceeding 2%
of the amount of money so collected and paid over to the officer.
Upon the failure of any such corporation, political subdivision, association,
company, firm or individual to deduct the amount of such taxes or
to pay the same over to the officer, less the cost of bookkeeping
involved in such transaction, as herein provided, within the time
required, such corporation, political subdivision, association, company,
firm or individual shall forfeit and pay the amount of such tax for
each such taxpayer whose taxes are not withheld and paid over or that
are withheld and not paid over together with a penalty of 10% added
thereto, to be recovered by an action of assumpsit in a suit to be
instituted by the officer or by the proper authorities of the taxing
district, as debts of like amount are now by law recoverable, except
that such person shall not have the benefit of any stay of execution
or exemption law.
All provisions of the Act are incorporated herein by reference.