Major changes relating to the collection of local Earned Income Tax (“EIT”) will take effect on January 1, 2012. Act 32 of 2008 mandates the consolidation of EIT collection and reporting (one tax collection district per county) for taxes levied and collected after December 31, 2011, and applies to all municipalities and school districts in all counties except Philadelphia. Under the new tax collection system, all employers doing business in the state, even those located in jurisdictions that do not impose an EIT, will be required to withhold applicable EIT from compensation paid to their employees. Employers with business locations in multiple counties will be permitted to file one return with the county tax collection district where their payroll operations are located, or with another tax collection district approved by the Department of Community and Economic Development. However, employers who exercise that option will be required to remit withholdings and employee tax detail electronically on a monthly basis, whereas Act 32 otherwise requires quarterly tax returns and payment.