ET-1     2023    PAYROLL EXPENSE TAX 
                                               Employer/Sole Proprietor/Partner/ Contractor 
                                         City of Pittsburgh     
                                                                                        Rev 11/22

                                                Amended Return (  )    
ACCOUNT NO                        FEDERAL ID 
                                                SIGNATURE _____________________________________________ 
  QUARTER                         
                                                TITLE _____________________ DATE ________________________ 
  CITY ID 
                                                PHONE _________________________________________________ 
DUE ON OR BEFORE                                E-MAIL ADDRESS ________________________________________ 

                                                PREPARER’S NAME ______________________________________ 
Business Name:
                                                PREPARER’S PHONE ______________________________________ 
                                                I hereby certify, swear and aver that all statements herein are true and correct to the best of my knowledge and 
Mailing Address:                                belief, being duly apprised of my duty under the law to submit honest and complete information or be subject to the 
                                                penalties provided by law. 
City, State, Zip:                                                         OMISSION OF THE ABOVE APPLICABLE INFORMATION 
                                                                          CONSTITUTES AN INCOMPLETE RETURN 

USE BLACK INK ONLY ON THIS FORM-DO NOT STAPLE ANYTHING TO THIS FORM 
If you are a  501-C 3 Purely Public Charity- please check the following box and refer to instructions 
on how to complete the form. 
If you are a Contractor/User of Help Supply Service – please include an attachment with the name, address, tax 
id number (EIN), PLI permit number, and phone number of the subcontractors/help supply service. 
                                                TAXABLE                                   AMOUNT 
  COMPUTATION OF TAX 
                                                AMOUNT                        TAX RATE                            DUE 
  TAXABLE PAYROLL EXPENSE 

1. EMPLOYERS  (refer to instructions)         1a.__________.____              X .0055 = 1b.____________.____  

2. SELF-EMPLOYED*  (refer to instructions)    2a.___________.____             X .0055 = 2b_____________.____ 

3. PARTNER* (refer to instructions)                                           X .0055 = 
                                              3a.___________._____                      3b_____________.____ 
4. CONTRACTOR / USER OF HELP SUPPLY
                                                                              X .0055 = 
  SERVICE (refer to instructions)             4a.___________.____                       4b_____________.____ 
*Partnerships/sole proprietorships that do not provide services through employees and only earn passive income (e.g. rents,
interest, dividends, royalties, and capital gains) have nothing to report.

5. TAX DUE (Add lines 1b through 4b)                                          5. _____________.____

6. INTEREST (0.5% (0.005%) per month)                                         6. _____________.____

7. PENALTY        (1% (0.01%) per month)                                      7. ______________.____

8. TOTAL AMOUNT DUE (Add Lines 5 through 7)                                   8. ______________.____
                                         Amounts of $2.00 or less are not due 
                      Make check payable to:  TREASURER, CITY OF PITTSBURGH – DO NOT SEND CASH 
                  Mail to: PAYROLL EXPENSE TAX – 414 GRANT ST – PITTSBURGH PA 15219-2476 
                        A $30.00 service fee will be charged for any check returned from the bank for any reason. 

  020000000000000000000000000002023 

                 CITY OF PITTSBURGH PAYROLL EXPENSE TAX 
                                      CITY CODE, TITLE TWO, CHAPTER 258 
                                                           
                                            INSTRUCTIONS 
  
 WHO MUST FILE 
 Every employer conducting business in the City of Pittsburgh is required to file a Payroll Tax on their payroll 
 expense and on their own net earnings distributions to each partner, sole proprietor or individual performing 
 services within the City of Pittsburgh. A person shall be deemed to be conducting business within the City of 
 Pittsburgh if one engages, hires, employs or contracts with one or more individuals as employees or is self-
 employed. Form can be downloaded at www.pittsburghpa.gov/finance. 
  
 GENERAL CONTRACTORS- If you are a General Contractor, complete the General Contractor Detail Report 
 listing all subcontractors who have performed work or rendered services within the City of Pittsburgh during 
 the quarter. Submit this report with the Payroll Expense Tax Form.     Note General Contractor Detail Report 
 should not be used to complete the General Contractor’s Payroll Expense Tax Form. Subcontractors are 
 responsible for filing their own tax forms with the City. General Contractor Detail Report can be downloaded at 
 www.pittsburghpa.gov/finance.. 
   
 PROFESSIONAL EMPLOYER ORGANIZATIONS- If you are a Professional Employer Organization, who is 
 responsible for filing the Payroll Expense Tax on behalf of your clients, complete the Payroll Expense Tax 
 Allocation Schedule for Professional Organization form found at www.pittsburghpa.gov/finance.  
  
 COMPENSATION MEANS 
 Salaries, wages, commissions, bonuses, net earnings and incentive payments, whether based on profit or 
 otherwise, fees, tips and any other form of remuneration earned for services rendered, whether paid directly or 
 through an agent, and whether in cash or in property or the right to receive property, excluding any Passive 
 Income received by Partners or Self-employed persons. The Compensation of a Partner or Self-employed person 
 is that person’s Taxable Distributions from each separate Business activities carried on within the City. 
 
 WHEN TO FILE AND PAY 
 THE PAYROLL EXPENSE TAX WILL REVERT TO A CALENDAR REPORTING QUARTER AS FOLLOWS: 
                                                                          st
  First quarter calculated on January, February and March due May 31  
                                                                        st
  Second quarter calculated on April, May and June due August 31  
                                                                                th
  Third quarter calculated on July, August and September due November 30  
                                                                                          th 
  Fourth quarter calculated on October, November and December due February 28
  
 TAXABLE PAYROLL EXPENSE 
  
 Line 1 - EMPLOYERS- the compensation earned by the employees, irrespective of when paid, including 
 salaries, wages, commissions, bonuses, and other compensation, by an individual who, during the tax year, 
 performs work or renders service, in whole or in part of the City. The Payroll Tax is on gross payroll of the 
 Employer.  The Employers’ portions of federal and state payroll taxes, health insurance premiums, retirement 
 plan contributions, etc., are not part of taxable gross payroll.   
   a.  Line 1a. – Enter the taxable payroll expense amount 
   b.  Line 1b. -  Multiply line 1a by 0.0055 
            
 Lines 2 and 3 - SELF-EMPLOYED INDIVIDUALS/PARTNERS- in addition to the foregoing, the entire amount 
 of distributions made to any self-employed individual from their business for services performed in whole or in 
 part of the City during the tax year. The term payroll expense for partnerships shall also mean, in addition to 
 foregoing, the entire amount of distributions made to any person having an interest in such partnerships for 
 services performed in the City of Pittsburgh. A partner or a self-employed individual is taxed only on the draws 
 and distributions received by him or her during the year from his or her business.  Any draws and distributions 
 that exceed the net income of the partnership or sole proprietorship for the calendar year are not subject to tax.  
 In calculating net income from the business, partners and sole proprietors are not allowed to deduct the 
 following items: IRA, pension, or Section 401(k) contributions, or Section 125 benefits, or health insurance 
 premiums allocable to that partner or to that self-employed person.  Moreover, special federal tax deductions 
 that are not allowed for Pennsylvania personal income tax purposes are not allowed on the Form ET.    
   c.  Line 2a (Self-Employed) & Line 3a (Partners) - Enter the taxable payroll expense amount 
   d.  Line 2b (Self-Employed) & Line 3b (Partners) -  Multiply line 2a and/or 3a by 0.0055 
            

 Line 4- CONTRACTOR/USER OF HELP SUPPLY SERVICE - employee compensation includes taxable 
 compensation reported for Pennsylvania individual income tax purposes, including commissions, bonuses, 
 stock options, incentive, and overtime payment.  However, deductions from wages for the following items are 
 not allowed in determining compensation earned in the City of Pittsburgh: deferred compensation, IRA, SEP, 
 Section 401(k) contributions, or Section 125 plans for medical or other cafeteria plan benefits.   Other than 
 these special rules, compensation income that is not subject to Pennsylvania personal income tax is not subject 
 to the Form ET tax. However, income excluded from Pennsylvania personal income tax under a state 
 reciprocity agreement (see PA Form-419 EX) is not exempt if it is earned in Pittsburgh. In addition to the 
 foregoing, if work is performed by subcontractors or employees of a help supply service, the contractor must 
 show the name, address, tax id number (EIN), PLI permit number, and phone number of the 
 subcontractors/help supply service on an attachment. For definition of Help Supply, cross reference 61 Pa. 
 Code Sec. 60.4 (sales tax).  
        e.  Line 4a. – Enter the taxable payroll expense amount 
        f.  Line 4b. – Multiply line 4a by 0.0055 
            
 501C-3 Purely Public Charitable Organization -shall calculate the tax that would otherwise be attributable to 
 the City of Pittsburgh and file a return, but shall only pay the tax on that portion of its payroll expense 
 attributable to business activity for which a tax may be imposed pursuant to Section 511 of the Internal 
 Revenue Code.  If the charity has purchased or is operating branches, affiliates, subsidiaries or other business 
 entities that do not independently meet the standards of the “Institutions of Purely Public Charity Act”, the tax 
 shall be paid on the payroll attributable to such for-profit branches, affiliates or subsidiaries, whether or not the 
 employees are leased or placed under the auspices of the charity’s umbrella or parent organization.  A current 
 copy of the Federal 990 tax return and Non-Profit Charter may be requested to support your claim of a Purely 
 Public Charity. 
        g.  Line 1a.- enter the total Payroll Expense that would be taxable if entity were not a Purely 
                      Public Charity. 
        h.  Line 1b. - Multiply line 1a by 0.0055 
        i.  Line 5-  enter tax due, if applicable 
        j.  Line 9 enter the amount of tax owed and paid.   
        k. Attach a worksheet showing what is taxable and what is not taxable. 
            
                       FOR ASSISTANCE CALL 412-255-2525 
 
   Has business been sold or discontinued? Do you need to update or change your business 
   information? If YES, a CHANGE IN BUSINESS STATUS FORM must be completed and returned for 
   processing. Form(s) can be downloaded at www.pittsburghpa.gov/finance or call 412-255-2525 to 
   request the form.