How to Fill Out the Pittsburgh Payroll Tax Return (w/ Examples) + FAQs

The Pittsburgh Payroll Expense Tax Return, known as the ET-1 form, is the quarterly tax report that every business operating inside the City of Pittsburgh files to pay tax on its payroll. Employers, sole proprietors, partners, and certain contractors all use this single form to report wages and net earnings tied to work done within city limits.

The tax is small as a rate but easy to get wrong, and a wrong filing carries real cost. The City charges 1% penalty per month plus 0.5% interest per month on late or short payments, so a missed quarter snowballs fast. About 9,000 to 10,000 businesses file payroll-based taxes with Pittsburgh each year, and the most common mistake is simply using the wrong line for the type of filer you are.

Here is what you will learn in this guide:

• 🧾 What the ET-1 form is, who must file it, and the exact 0.55% tax rate that applies.
• 📅 The four quarterly deadlines and the penalty math that kicks in the day after you miss one.
• ✍️ A line-by-line walkthrough of every box on the form, with sample entries you can copy.
• 👥 Three full filled-out examples for a restaurant owner, a self-employed consultant, and a staffing firm.
• 🚫 The ten most common mistakes that trigger holds, notices, and penalty letters from the City.

What the Form Is and Who Must File It

The Pittsburgh ET-1 is the official return for the Payroll Expense Tax, a tax imposed under City Code Title Two, Chapter 258. The City of Pittsburgh Department of Finance receives the form and the payment. The tax applies to the payroll expense a business generates from work performed in whole or in part inside city limits, and the current rate is 0.55%, written on the form as .0055.

You must file if you conduct business in Pittsburgh, which the City defines broadly. The instructions state that a person is “conducting business” if they engage, hire, employ, or contract with one or more individuals as employees, or if they are self-employed within the city. This sweeps in four filer types named directly on the form: employers, self-employed persons, partners, and contractors or users of a help supply service.

The tax raises money for the City’s general fund and shifts part of the cost of city services onto the businesses that benefit from them. The statute behind it is the reason the form exists, the May, August, November, and February deadlines are the timing rule, and the penalty and interest charges are the consequence of ignoring either. Each piece works with the others: the statute creates the duty, the deadline sets the clock, and the penalty enforces both.

One common misconception is that a business with no Pittsburgh employees owes nothing. That is false for self-employed people and partners, who owe tax on their own draws for services performed in the city even with zero employees. Another false belief is that nonprofits are always exempt. A 501(c)(3) Purely Public Charity must still file a return and pay tax on any payroll tied to unrelated business income under Section 511 of the Internal Revenue Code.

Before You Start: Documents and Information You Need

Gather everything before you open the form. Filing with missing numbers is the fastest path to an incomplete return, which the City can reject and treat as never filed, exposing you to penalty.

Here is your pre-filing checklist:

• City of Pittsburgh ID number. The City returns any form from an unregistered business, so without this number your return and payment will not be accepted.
• Federal Employer ID Number (EIN). The form cross-references your federal identity, and a missing or wrong EIN can route your payment to the wrong account.
• Account number. This is your payroll tax account with the City, and leaving it blank slows posting and can trigger a non-filer notice.
• The correct quarter. You must mark which of the four quarters you are reporting, and the wrong quarter applies your payment to the wrong period.
• Total gross payroll for the quarter. This is the base for employers on Line 1a, and an understated figure creates a tax shortfall that draws penalty.
• Net earnings or draws for owners. Self-employed people and partners need their taxable distributions for services in the city for Lines 2a and 3a.
• Subcontractor details. Contractors and help supply users must attach each subcontractor’s name, address, EIN, PLI permit number, and phone, or the return is incomplete.
• A check or payment method. Checks go to Treasurer, City of Pittsburgh, and the City warns do not send cash.
• Prior returns. If you are amending, you need the original figures, since an amended ET-1 requires a written request under Section 604 of the regulations.
• Your signature authority. The form must be signed by someone who can swear the figures are true, so know who that person is before filing.

Missing any one of these items usually means a delay, a notice, or a penalty. Marcus, an employer filing his first quarter, learned this when he filed without his City ID and the Finance Department mailed his return back with a registration form, costing him three weeks.

Where to Get the Form and How to Access It

The official ET-1 lives on the City’s Tax Forms page under the “Payroll Expense Tax” heading. Always download the version that matches the year you are reporting, because the City posts a fresh form each year and the rate or layout can change. The current form is the 2026 ET-1, and the most recent prior version is the 2025 ET-1, which carries a revision date of Rev 12/24 printed in the top corner.

Confirm the revision date before you write anything. Using last year’s PDF is a frequent error, and an outdated form can show an old account layout that misroutes your payment. The City also posts prior-year forms back to 2015 for businesses that need to file or fix an older quarter.

You have two main ways to access and submit the form. You can download the fillable PDF, type your figures, print it, and mail it with a check. You can also work through the City’s online tax system reached from the Finance and Taxes pages, which lets registered businesses file and pay without mailing paper. If you are not yet registered, you must first get a City ID number, since the City will not accept a payment from an unregistered business.

Step-by-Step: How to Fill Out the Pittsburgh ET-1 Line by Line

The ET-1 is a single page split into a header block, four computation lines, three total lines, and a signature block. Work top to bottom and use black ink only, and never staple anything to the form, as the instructions direct. Below is every field in the order it appears.

Header: Account No, Federal ID, City ID, and Quarter

The top boxes ask who you are and which period you are filing for. Enter your City ACCOUNT NO, your FEDERAL ID (EIN), and your CITY ID in the labeled boxes, then mark the QUARTER you are reporting. Write the EIN in the standard nine-digit format such as 25-1234567, and copy your account and City ID exactly as they appear on your registration paperwork.

For example, Sofia, who runs a bakery, enters account number 0045821, federal ID 25-1234567, City ID PGH-88210, and marks Q1 for the January through March period. If you operate more than one business location under one registration, you still file one combined return under the single account number, not one per site.

A common mistake here is transposing two digits in the account or City ID, which posts your payment to a stranger’s account and leaves your own balance unpaid and accruing penalty. Many filers also wrongly believe the Federal ID and City ID are the same number; they are not, and mixing them up creates a mismatch the City must resolve by hand before crediting you.

“DUE ON OR BEFORE” and the Quarter Selection

This field ties your return to one of the four calendar quarters. The form notes the tax reverts to calendar reporting quarters, and you mark the period the wages were earned. The quarters and deadlines are: Q1 (Jan–Mar) due May 31; Q2 (Apr–Jun) due August 31; Q3 (Jul–Sep) due November 30; and Q4 (Oct–Dec) due February 28.

For example, Marcus reports wages paid in April, May, and June, so he selects the Q2 box and knows his return is due August 31. If a deadline lands on a weekend or holiday, plan to mail early, because the City accepts only the U.S. Post Office postmark as proof of timely filing and ignores private postage meter stamps.

A common mistake is filing wages in the quarter you paid them rather than the quarter they were earned, which can double-count or skip a period. People often assume the deadline is the last day of the quarter; in fact each return is due about two months after the quarter closes.

Line 1: Employers (Taxable Payroll Expense)

This line asks employers for the total gross payroll earned by employees for work done in whole or in part inside Pittsburgh. Enter the taxable payroll figure on Line 1a, then multiply it by .0055 and write the result on Line 1b. The tax is on gross payroll, but you exclude the employer’s share of federal and state payroll taxes, health insurance premiums, and retirement plan contributions.

For example, Sofia’s bakery paid $120,000 in gross wages for the quarter, so she writes 120,000.00 on Line 1a and 660.00 on Line 1b. If an employee splits time between a city store and a suburban store, only the portion earned in the city is taxable, and you must allocate it fairly.

A common mistake is including the employer’s matching FICA or 401(k) contributions in the Line 1a base, which inflates your tax and overpays the City. A frequent misconception is that only Pittsburgh residents count; in truth the test is where the work is performed, not where the employee lives.

Line 2: Self-Employed (Taxable Payroll Expense)

This line captures the net earnings a self-employed person draws from their business for services performed in the city. Enter the taxable distribution on Line 2a and multiply by .0055 for Line 2b. You are taxed only on the draws and distributions you actually received during the year, and draws that exceed your business’s net income are not taxable.

For example, David, a self-employed graphic designer working from a Lawrenceville studio, drew $60,000 for city services, so he writes 60,000.00 on Line 2a and 330.00 on Line 2b. If you earn only passive income such as rent, interest, dividends, or capital gains and provide no services, you have nothing to report on this line.

A common mistake is deducting IRA, pension, 401(k), or Section 125 health amounts from your draw, which the instructions specifically disallow and which understates your tax. Many self-employed filers wrongly think this tax is the same as the state’s; it is a separate City of Pittsburgh tax with its own rules.

Line 3: Partner (Taxable Payroll Expense)

This line works like Line 2 but for partners in a partnership. Enter the total distributions paid to each partner for services performed in the city on Line 3a, then multiply by .0055 for Line 3b. As with self-employed filers, partners are taxed on actual draws, and draws above the partnership’s net income for the year are not subject to tax.

For example, a two-partner law firm distributes $200,000 for city services across both partners, so the firm writes 200,000.00 on Line 3a and 1,100.00 on Line 3b. If a partner earns only a share of passive income and performs no services, that share is excluded from the line.

A common mistake is reporting a partner’s full guaranteed payment without checking it against net income, which can overstate the tax in a low-profit year. Partners often believe each partner files their own ET-1; in practice the partnership files one return covering all partners’ service distributions.

Line 4: Contractor / User of Help Supply Service

This line is for general contractors and businesses that use a help supply (staffing) service. Enter the taxable compensation on Line 4a and multiply by .0055 for Line 4b. You must attach a sheet listing each subcontractor or help supply service’s name, address, EIN, PLI permit number, and phone, or the City treats the return as incomplete.

For example, BuildRight LLC, a general contractor, reports $90,000 of taxable compensation on Line 4a, writes 495.00 on Line 4b, and staples nothing but instead clips a typed attachment listing its three subcontractors. Income excluded under a state reciprocity agreement is still taxable here if the work was earned in Pittsburgh.

A common mistake is leaving off the subcontractor attachment, which voids the return and restarts your penalty clock. A widespread misconception is that the general contractor pays for its subcontractors; in fact subcontractors must file their own ET-1 returns with the City.

Line 5: Tax Due

This line totals your tax. Add Lines 1b through 4b and enter the sum on Line 5. Most filers use only one of the four computation lines, so for them Line 5 simply equals that single line.

For example, Sofia copies her 660.00 from Line 1b straight to Line 5 because she has no other filer type. A business that is both an employer and a partnership would add both 1b and 3b here. The form notes that amounts of $2.00 or less are not due, so a tiny calculation need not be paid.

A common mistake is forgetting to total multiple lines when a business wears two hats, which underpays the City. Some filers think Line 5 is the final number to pay; it is not, because interest and penalty may still be added below.

Line 6: Interest

This line charges interest on any tax paid after the deadline. The rate is 0.5% per month, and you multiply your Line 5 tax by 0.005 for each month or part of a month that you are late. Enter the result on Line 6, or leave it blank if you are paying on time.

For example, if David pays his $330 two months late, he enters 3.30 on Line 6 ($330 x 0.005 x 2). Interest runs from the day after the due date, so even one day late counts as a full month.

A common mistake is skipping interest because the amount feels trivial, which leaves your balance short and keeps it accruing. Filers often assume interest and penalty are the same charge; they are two separate lines that both apply to a late payment.

Line 7: Penalty

This line adds a late penalty on top of interest. The rate is 1% per month, so you multiply your Line 5 tax by 0.01 for each month or part of a month past due, and enter the figure on Line 7. Like interest, penalty starts the day after the deadline.

For example, David’s two-months-late $330 produces a penalty of 6.60 on Line 7 ($330 x 0.01 x 2). Combined with interest, his late charges run 1.5% per month, which is 9.90 added to his original tax.

A common mistake is calculating penalty on the total amount due rather than on the tax from Line 5, which overstates what you owe. Many filers wrongly believe the City waives small penalties automatically; it does not, and unpaid penalty can grow into a collection notice.

Line 8: Total Amount Due

This line is your final payment figure. Add Lines 5, 6, and 7 and enter the total on Line 8, which is the exact amount your check or online payment should match. If you are filing on time, Line 8 equals Line 5.

For example, David’s late filing gives him 330.00 + 3.30 + 6.60 = 339.90 on Line 8. Paying any less than Line 8 leaves a balance that keeps drawing interest and penalty each month.

A common mistake is paying the Line 5 tax but forgetting to include the Line 6 and 7 charges, which leaves a small open balance that snowballs. Some filers think rounding down to a clean number is fine; the City posts the exact figure and bills the difference.

Signature Block: Signature, Title, Date, Phone, Email, and Preparer

The bottom block makes the return official and is where many forms fail. Sign your name, then complete TITLE, DATE, PHONE, and E-MAIL ADDRESS, and if someone prepared it for you, add the PREPARER’S NAME and PREPARER’S PHONE. By signing, you swear the figures are true and accept the legal penalties for false information.

For example, Sofia signs her name, writes Owner as her title, dates it 05/15/2026, and adds her phone and email. The form warns that omission of this required information constitutes an incomplete return, so a blank title or missing date can void an otherwise correct filing.

A common mistake is mailing an unsigned form, which the City cannot accept and which leaves you exposed to a late penalty while you re-file. People often think a bookkeeper’s signature is enough; the signer should be someone authorized to certify the business’s figures under oath.

Header Options: Amended Return and 501(c)(3) Charity Box

Two optional checkboxes change how you complete the form. Check the Amended Return box only when correcting a prior filing, and note that an amendment requires a written request under Section 604 of the Payroll Tax Regulations. Check the 501-C 3 Purely Public Charity box if you are a qualifying charity, then follow the special instructions to report only the payroll tied to taxable business activity.

For example, a museum that runs a for-profit gift shop checks the charity box, reports the gift shop’s payroll, and attaches a worksheet showing what is taxable versus exempt. The City may request a current Federal 990 and your nonprofit charter to support the claim.

A common mistake is checking the amended box without sending the required written request, which leaves the City unable to process the change. A frequent misconception is that checking the charity box exempts all payroll; only payroll outside the charity’s exempt purpose is freed from tax.

Three Filled-Out Examples Using Real Scenarios

Below are three complete walkthroughs following named filers through the ET-1 from top to bottom.

Scenario 1: Sofia, a Restaurant Owner With City Employees

Sofia owns a bakery in the Strip District with all wages earned inside the city, filing for Q1 on time.

Form Section	What Sofia Enters
Account No	0045821
Federal ID	25-1234567
City ID	PGH-88210
Quarter	Q1 (Jan–Mar)
Line 1a (Employer payroll)	120,000.00
Line 1b (x .0055)	660.00
Line 5 (Tax Due)	660.00
Line 6 & 7 (Interest/Penalty)	0.00 (filed on time)
Line 8 (Total Due)	660.00
Signature / Title / Date	Sofia Reyes / Owner / 05/15/2026

Scenario 2: David, a Self-Employed Consultant Working Partly Outside the City

David is a freelance graphic designer whose studio is in the city but who serves some suburban clients, filing for Q2 two months late.

Form Section	What David Enters
Account No	0071104
Federal ID	26-7654321
City ID	PGH-55190
Quarter	Q2 (Apr–Jun)
Line 2a (Self-employed draws, city portion)	60,000.00
Line 2b (x .0055)	330.00
Line 5 (Tax Due)	330.00
Line 6 (Interest, 2 months)	3.30
Line 7 (Penalty, 2 months)	6.60
Line 8 (Total Due)	339.90
Signature / Title / Date	David Okafor / Sole Proprietor / 11/02/2026

Scenario 3: A Staffing Firm Filing as a Help Supply Service

Apex Staffing supplies temporary workers to Pittsburgh job sites and files as a help supply service, attaching its client and worker details.

Form Section	What Apex Enters
Account No	0098335
Federal ID	27-1122334
City ID	PGH-31007
Quarter	Q3 (Jul–Sep)
Line 4a (Help supply compensation)	250,000.00
Line 4b (x .0055)	1,375.00
Required Attachment	Worker list: names, addresses, EIN, PLI permit, phone
Line 5 (Tax Due)	1,375.00
Line 8 (Total Due)	1,375.00
Signature / Title / Date	Lena Park / Controller / 11/20/2026

Beyond these three, remember filers like Marcus the first-time employer and the two-partner law firm face the same line logic, just on different lines.

How to File the Completed Form

Pittsburgh accepts the ET-1 by mail and through its online tax system, and you should keep proof either way.

By mail. Send the signed form and check to Payroll Expense Tax, 414 Grant St, Pittsburgh, PA 15219-2476, and make the check payable to Treasurer, City of Pittsburgh. Do not send cash, and do not staple anything to the form. There is no separate filing fee, but a $30.00 service fee applies to any check the bank returns for any reason. The only accepted proof of timely filing is the U.S. Post Office postmark, so mail a few days early and keep your mailing receipt.

Online. Registered businesses can file and pay through the City’s tax system reached from the Taxes pages, which typically accepts electronic check or card. Online filing posts faster and gives you an immediate confirmation, which you should save or print as your proof. For help with either channel, call the Business Tax line at 412-255-2525.

Processing usually takes a few weeks for mailed checks to post and is near-immediate online. Keep a copy of the completed form, your payment record, and your postmark or confirmation for at least the period the City can audit.

What Happens After You File

Once the City receives your ET-1, the Department of Finance posts the payment to your account and matches it against the quarter you marked. If everything ties out, the quarter closes with no further action, and you simply file again next quarter. If figures or registration details are missing, the City can return the form or send a notice asking you to correct it.

If you underpaid or filed late, the City bills the interest and penalty automatically, and those charges keep growing until the balance is paid in full. A returned check adds the $30 service fee on top of any late charges. Repeated non-filing can escalate to a formal violation, and under the City’s enforcement rules a taxpayer adjudged in violation can be fined up to $500 and costs for each offense.

You can amend a filed return if you find an error, but only by submitting a written request under Section 604 of the regulations and checking the Amended Return box. Keep your records ready, since the City may request supporting documents such as payroll registers or, for charities, a Federal 990.

Mistakes to Avoid When Filling Out the Form

• Filing while unregistered, which causes the City to return your form and reject your payment.
• Using the wrong line for your filer type, which misstates your tax and can trigger a correction notice.
• Including employer FICA or 401(k) match in Line 1a, which inflates and overpays your tax.
• Reporting wages where the worker lives instead of where the work is performed, which misstates the city portion.
• Omitting the subcontractor attachment on Line 4, which makes the return incomplete and restarts the penalty clock.
• Deducting IRA, pension, or Section 125 amounts from owner draws, which the instructions disallow and which underpays.
• Leaving Line 6 and 7 blank when filing late, which leaves an open balance that keeps growing.
• Calculating penalty on the total due instead of the Line 5 tax, which overstates what you owe.
• Mailing an unsigned or undated form, which the City cannot accept and which exposes you to late charges.
• Relying on a private postage meter stamp, which the City rejects as proof of timely filing.

Do’s and Don’ts

Do’s

• Do download the current-year form, because the City updates it annually and the layout can change.
• Do use black ink only, since the instructions require it for clean scanning.
• Do confirm the work was performed in the city, because that is what makes payroll taxable.
• Do total every applicable computation line on Line 5, so a multi-type business pays the full amount.
• Do mail early and keep the postmark, because it is the only accepted proof of timely filing.
• Do save your confirmation or copy, so you can defend the filing in an audit.

Don’ts

• Don’t staple anything to the form, since the instructions forbid it and stapling can jam processing.
• Don’t send cash, because the City accepts only checks or electronic payment.
• Don’t mix up your Federal ID and City ID, which creates a mismatch the City must fix by hand.
• Don’t skip the subcontractor attachment, which voids a contractor’s return.
• Don’t ignore amounts under $2.00, but know they are not due per the form.
• Don’t amend without the required written request, or the City cannot process the change.

Pros and Cons of Filing on Your Own vs. With Help

Filing on Your Own	Filing With a Professional
Pro: No preparer fee, since the form is one page and the math is simple.	Pro: A pro catches line-selection and allocation errors that cause notices.
Pro: You control the timing and can file the moment your payroll closes.	Pro: A pro tracks all four deadlines so no quarter slips.
Pro: You learn your own numbers, which helps in an audit.	Pro: A pro handles charity, contractor, and PEO complexities correctly.
Con: Easy to misallocate city vs. non-city wages without guidance.	Con: Costs a fee that may outweigh a tiny tax bill.
Con: You bear full responsibility for penalty if you miss a deadline.	Con: You still must hand over accurate payroll data to the preparer.

Frequently Asked Questions

What is the Pittsburgh Payroll Expense Tax rate?

Yes, there is a flat rate of 0.55%, shown on the ET-1 as .0055, applied to taxable payroll earned for work performed in whole or in part inside the City of Pittsburgh.

Do I have to file if I have no Pittsburgh employees?

No, not as an employer, but self-employed people and partners still owe tax on their own service draws, so you may still need to file on Lines 2 or 3.

When is the ET-1 due each quarter?

Yes, there are four deadlines: Q1 by May 31, Q2 by August 31, Q3 by November 30, and Q4 by February 28, based on when wages were earned.

Do I report wages where the employee lives or where they work?

No, residence does not control; you report the portion of payroll for work performed inside Pittsburgh, regardless of where the worker lives.

Should I include my employer FICA and 401(k) match on Line 1a?

No, the employer’s share of payroll taxes, health premiums, and retirement contributions is excluded, so Line 1a is gross employee compensation only.

Do I write my draws or my full net income on Line 2a?

Yes, you write your actual draws and distributions for city services, but only up to the business’s net income, since draws above net income are not taxable.

Can I deduct my health insurance from my partner draw on Line 3a?

No, the instructions specifically disallow deducting IRA, pension, 401(k), Section 125, or health insurance amounts allocable to a partner or self-employed person.

Do contractors need to attach a subcontractor list?

Yes, contractors and help supply users must attach each subcontractor’s name, address, EIN, PLI permit number, and phone, or the return is incomplete.

Is interest the same as penalty on this form?

No, they are separate: interest is 0.5% per month on Line 6 and penalty is 1% per month on Line 7, and a late filing owes both.

Are nonprofits exempt from the Payroll Expense Tax?

No, a Purely Public Charity must still file and pay on payroll tied to unrelated business income under Section 511 of the Internal Revenue Code.

How do I prove I filed on time?

Yes, by keeping the U.S. Post Office postmark for mailed returns or your online confirmation, since private meter stamps are not accepted as proof.

Can I amend an ET-1 after filing?

Yes, but you must check the Amended Return box and submit a written request under Section 604 of the Payroll Tax Regulations for the City to process it.

What happens if my check bounces?

Yes, the City charges a $30.00 service fee for any returned check, added on top of any interest and penalty already due on the balance.

Do I file one return for multiple business locations?

Yes, you file a single combined ET-1 under your one City account number, not a separate return for each location you operate in the city.