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FAQ Topic: Wage Taxes

What is Cambridge Township’s Political Subdivision Code (PSD)?

PSD Codes (political subdivision codes) are six-digit numbers that uniquely identify each municipality—township, borough, city—in Pennsylvania. PSD Codes play an integral role in assisting employers and tax collectors to remit and distribute the correct Earned Income Tax to the correct taxing jurisdictions. Cambridge Township’s PSD Code is 200404.

What is the wage tax?

The Earned Income Tax or Wage Tax requires every business that employs individuals at worksites within Pennsylvania, or employs individuals who work from their homes in Pennsylvania, to withhold the local earned income tax amount in the amount of 1% from all employees’ wages. Employers must remit their earned income tax withholdings to Berkheimer, Inc.  … Continued

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