About the Tax
Upper Merion Township levies a Local Services Tax (LST) to fund the cost of government services (for example, police, road maintenance, and park maintenance). All residents and non-residents alike who are employed in Upper Merion Township are required to pay an annual LST tax of $52.
Collecting the Tax
The township requires all employers within its boundaries to deduct the $52 LST from each eligible employee. The $52 withholding must be prorated over the entire year, such as a $1 per pay period withholding for employees paid weekly or a $2 per pay period for employees paid biweekly. The employers must remit monies collected to Upper Merion Township along with quarterly reporting forms that are provided to employers in January.
Employees are exempt from paying the LST in any calendar year in which they earn less than $12,000. Employees who have more than one employer are not required to pay more than $52 in any calendar year. Employees must request an exemption by filing an exemption request form (LST Exemption Certificate) with the township and with their employer. Employees who have not filed the form can not be exempted from the LST.