What is the Emergency & Municipal Services Tax? The Emergency & Municipal Services Tax (EMST) is a tax levied against individuals who are employed within the City’s corporate limits during the calendar year.

Why was the EMST enacted? Effective January 1, 2005 the City of Lancaster has renamed the Occupational Privilege Tax the Emergency & Municipal Services Tax.

When is the EMST effective? The EMST is effective January 2005 to December 2005 and every calendar year thereafter.

What is the amount of the EMST? The tax increased from $10 to $52.

Who must pay the EMST? The tax applies to all employees working within the City’s corporate limits regardless of the method of remuneration and to self-employed individuals who perform services of any type or engage in any profession or occupation within the City limits.

Who must withhold the EMST? Each employer within the City as well as those employers situated outside the City, but engaged in business within the City, is responsible for withholding the $52 from each employee.

Does the EMST replace the OPT Tax? Yes, the City renamed the Occupational Privilege Tax the Emergency & Municipal Services Tax.

What services do I get for the EMST? The EMST is General Fund Revenue to the City and is used to fund Police Services, Fire Services, and road construction and maintenance provided by the City.

Must proof of the EMST deduction be provided to employees? Yes, employers must provide each employee from whom the tax has been deducted with proof of the deduction to be used in the event of employment change. The proof of deduction form, upon presentation to any other employer, shall provide proof of payment of the tax and no additional tax may be deducted for the current tax year.

What is acceptable proof of deduction? LOP2 forms are available at the City Treasurer’s Office or employers may use a form of their own design. The form must include the following information: Emergency and Municipal Services Tax, year, amount deducted, employer’s name, city account number, address, employee’s name, address, and social security number.

When is the EMST payment due to the City? Each employer shall file a return showing the tax computation on billing forms provided by the City Treasurer’s Office. Employment records from January 1 to March 31 of the tax year will be used to determine the number of employees from whom the tax was deducted. The tax is payable to the City Treasurer by April 30^{th of} each year.

What about payment for employees who start after the first quarter? Supplemental payments for new employees hired between April 1 and June 30 must be remitted by July 31; July 1 to September 30 remitted by October 31; and October 1 to December 31 remitted by January 31 of the following year.

What documentation must accompany the quarterly payments? Supplemental documentation detailing the evidence of deductions must accompany the payment report. Preferably, documentation to be included with payment may be the inclusion of a payroll or computerized printout or electronic file detailing the information as it is listed on the individual LOP2 forms. The City’s copies of the LOP2 form may be included as an acceptable alternative.

How do employers or self-employed individuals establish an account with the City? New accounts may be established by contacting the City of Lancaster Customer Service Department at (717) 735-3425 and providing the employer name, address, and federal identification number or social security number, as applicable.

What will the deduction be for employees who worked for a municipality with an EMST of less than $52? Employers will be required to deduct an additional amount for all new employees who have originally paid an EMST of less than $52 while employed outside the City’s corporate limits. Upon presentation of proof of the original deduction the employer must deduct and remit to the City the difference between the $52 EMST and the employee’s original deduction. In addition to withholding the additional tax, the City employer shall identify the employee and the amount deducted by setting forth his name, address, and the name and address of the employer who deducted the EMST in the other municipality, the amount of the EMST withheld, and the name of the municipality to whom the EMST was paid.

Must the tax be deducted and remitted for employees who earn less than $12,000? Yes, it is the employer’s responsibility to withhold and remit the EMST from all employees regardless of total earnings. If the City determines that an employee earned less than $12,000 in a given calendar year, the City will refund the EMST withholding to the employee.

What are the penalties for late payment or for noncompliance? If payment remains unremitted thirty or more days after the due dates set forth, a penalty of 5% shall be added to the flat rate of such tax for nonpayment and interest on the unpaid balance will be computed at ½% per month. Further, a fine of not less than $100 or more than $1,000 per offense may be levied upon any employer who fails or refuses to comply with withholding and remitting this tax.

What are the consequences if the employer fails to withhold the EMST? The employer is responsible to file and pay the tax in full for each employee whether or not he makes collection from the salary, wages or commissions paid by him to such employee.

What if an employee works more than one job, works in more than one municipality during a year, or changes jobs during the year? It is intended that no one individual pay more than $52 per year for the Emergency and Municipal Services Tax. Each individual with more than one occupation will pay the tax to his/her principal employer. If proper proof of deduction is presented to subsequent employers, no additional tax may be withheld with the exception of withholdings of less than $52. If the original tax withheld was less than the $52 EMST, the subsequent employer must withhold the difference between the $52 and the original deduction.

How does an employee get a refund when claiming income exemption? Each employee claiming income exemption must provide the City Treasurer’s Office with proof of annual earnings, i.e. W-2 form or completed PA State income tax return, for a determination to be made by the City. If income exemption is authenticated and original proof of deduction has been provided, the City will refund the EMST by check via the US mail. 

How does an employee get a refund for a duplicate payment? Each employee requesting refund for a duplicate EMST withholding must provide original proof of withholding for each tax withheld as described in #9 above to the City Treasurer’s Office. Refund will be made by check via the US mail.