Berkheimer Tax: The Essential Guide for Best Practices

If you’re a business owner, payroll manager, or employee in Ohio, Pennsylvania, or other states where Berkheimer tax administrator services operate, you’ve probably encountered their name on your tax documents. But here’s the thing most people don’t realize: understanding how a Berkheimer tax administrator works can literally save you thousands in penalties and headaches. We’re talking about the difference between sleeping soundly at tax time and spending your weekend digging through receipts in a cold sweat.

A Berkheimer tax administrator isn’t some mysterious entity—they’re a third-party tax collection and administration service that handles local and municipal taxes for businesses. Think of them like the middleman between you and your city or county. They collect taxes, file returns, and handle compliance on behalf of employers and businesses. The problem? Most people don’t know the rules, deadlines, or best practices that keep them out of trouble.

This guide walks you through everything you need to know about working with a Berkheimer tax administrator, from registration to avoiding costly mistakes. Let’s cut through the confusion.

What Is a Berkheimer Tax Administrator?

Berkheimer is one of the largest tax administration companies in the United States. They handle local tax collection, reporting, and compliance for municipalities, school districts, and counties across multiple states. When your business operates in a jurisdiction that contracts with Berkheimer, you’ll interact with them for things like local income tax, earned income tax (EIT), and sometimes business privilege taxes.

Here’s the practical reality: instead of sending tax payments directly to your city or county, you send them to Berkheimer. They then distribute those funds to the appropriate municipalities. It’s a centralized system that theoretically makes things easier—but only if you understand the rules.

A Berkheimer tax administrator essentially acts as a clearinghouse. They:

• Collect payroll taxes from employers
• File tax returns on behalf of businesses
• Distribute funds to local jurisdictions
• Handle compliance notices and correspondence
• Process amendments and corrections
• Manage audit defense and penalty abatement requests

The jurisdictions that use Berkheimer include cities and counties in Ohio, Pennsylvania, Kentucky, and other states. If you’re unsure whether your business falls under their umbrella, check your local tax notice or visit the Berkheimer website directly.

Why Berkheimer Tax Administrators Matter for Your Business

You might be thinking, “Why should I care about all this? I just pay my taxes.” Fair question. But here’s where it gets real: misunderstanding how your local tax administrator works can cost you big.

First, Berkheimer collects taxes that are legally required. If you’re late or underpay, penalties and interest accrue fast. We’re talking 5-10% penalties plus interest that compounds daily. For a business with even modest payroll, that’s real money.

Second, they handle filing requirements that vary wildly by jurisdiction. One city might require monthly filings; another, quarterly. Miss a deadline by one day, and you’re in violation. Berkheimer sends notices, but those notices sometimes get lost in the shuffle of a busy office.

Third, working with a Berkheimer tax administrator means you’re dealing with a professional service, not a local bureaucrat. That’s actually good news. It means there are clear procedures, appeal processes, and ways to resolve issues. But you have to know how to use them.

Pro Tip: Set calendar reminders for every filing deadline associated with your Berkheimer account—not just once, but recurring reminders 5 days before. Berkheimer doesn’t call you; they penalize you. Be proactive.

If you operate in multiple jurisdictions or states, Berkheimer administration becomes even more critical. One mistake across three cities? That’s three separate penalties. Understanding the system helps you avoid that nightmare.

Registration and Setup: Getting Started the Right Way

When you start a business or hire your first employee in a jurisdiction served by Berkheimer, registration is mandatory. Here’s how to do it right.

First, determine which taxes apply to your business. This depends on:

• Where your business is located
• Where your employees work
• The type of business you operate
• Your gross income or payroll

Not all businesses owe all taxes. A sole proprietor working from home might owe different taxes than an LLC with five employees. Check your city or county website or contact Berkheimer directly to clarify.

Berkheimer requires specific registration forms depending on your tax type. These typically include:

• Business identification information
• Federal EIN (Employer Identification Number)
• Ownership structure (sole proprietor, LLC, corporation, etc.)
• Expected payroll or income
• Withholding election details

You can register online through Berkheimer’s portal or via paper forms. Online is faster and creates a digital record, which is helpful if disputes arise later.

Once registered, you’ll establish how often you remit taxes (monthly, quarterly, annually) and your payment method. Berkheimer accepts:

• Electronic funds transfer (EFT)
• Credit card payments (with fees)
• Check payments (slower, higher audit risk)
• ACH transfers

Pro move: Use EFT or ACH. You get a confirmation number, which proves payment. Checks can get lost in the mail, and then you’re fighting a penalty.

Berkheimer will issue you an account number and login credentials for their online portal. Save these. You’ll need them to:

• View filing deadlines
• Make payments
• Download payment history
• File returns
• Submit amended returns

Treat these credentials like your bank password. Don’t share them casually, and don’t use the same password as your personal accounts.

Warning: If you miss the registration deadline (usually 30 days after hiring your first employee), Berkheimer can assess penalties even before you file a return. Register early, not late.

For more insight into how local tax administrators work across different jurisdictions, check out resources like the IRS.gov website, which provides guidance on employer tax responsibilities.

Filing Deadlines and Payment Schedules

This is where precision matters. Berkheimer deadlines are not suggestions—they’re hard stops. Missing them triggers automatic penalties.

Your filing frequency depends on your tax type and jurisdiction. Common schedules include:

• Monthly: Most common for payroll taxes. Due by the 15th of the following month.
• Quarterly: Some jurisdictions use quarterly filing. Typically due 30 days after quarter-end.
• Annual: Less common, usually for sole proprietors or very small businesses.

Berkheimer’s portal shows your specific deadlines. Don’t rely on memory or assumptions. Log in and verify every deadline for your account.

Here’s a detail that trips people up: your payment deadline and filing deadline might be different. You might need to pay by the 15th but file the return by the 25th. Or vice versa. Always check both.

Late filing penalties typically start at 5% of the unpaid tax, plus interest. If you’re 30+ days late, it jumps to 10%. Some jurisdictions add additional penalties for non-filing (separate from late payment penalties). The math gets ugly fast.

If you know you’ll be late, contact Berkheimer immediately. Some jurisdictions allow reasonable cause abatement if you can show good faith effort.

To understand federal tax deadline implications, review the IRS employment tax guidance.

Common Mistakes That Trigger Audits and Penalties

After working with hundreds of businesses, certain mistakes show up over and over. Knowing these helps you avoid them.

Many employers get their withholding calculation wrong. You might withhold 1% when the jurisdiction requires 1.5%. Or you might withhold too much, creating a credit that’s a pain to reconcile later.

The fix: Use Berkheimer’s withholding calculator or hire a payroll service that integrates with Berkheimer. Don’t eyeball it.

This is huge. If you classify someone as a 1099 contractor but they should be a W-2 employee (based on how you control their work), you’re not withholding taxes you should be. Berkheimer’s audit systems catch this, and the back taxes plus penalties are brutal.

Rule of thumb: If you control how, when, and where someone works, they’re likely an employee. If they control their own schedule and methods, they might be a contractor. When in doubt, ask an employment law attorney or accountant.

You discover you underpaid by $500 six months ago. You panic and submit an amended return. Good instinct, but if you wait too long, Berkheimer’s audit system has already flagged the discrepancy. Now you look like you were hiding something.

The fix: File amendments within 30 days of discovering the error. Include a cover letter explaining the error and why it happened. Proactive beats reactive.

You file monthly returns, but at year-end, your quarterly reconciliation doesn’t match. This creates discrepancies that trigger audits. The reason? Payroll changes, employee additions/removals, or simple data entry errors accumulate.

The fix: Reconcile your payroll records to your tax filings monthly. Don’t wait until year-end.

Berkheimer sends notices about missing returns, underpayments, and audit findings. Some businesses ignore them, hoping they’ll go away. They don’t. They escalate. Ignore long enough, and you’re facing wage garnishment or business license suspension.

The fix: Create a system where all Berkheimer correspondence goes to one person. That person reviews it within 48 hours and flags issues immediately.

If you have employees in multiple states or cities, each location has its own Berkheimer account and deadlines. Missing one while managing another is easy. You pay on time in City A but forget City B.

The fix: Use a spreadsheet or accounting software that tracks all jurisdictions. Color-code by deadline. Use alerts.

Warning: The IRS and state tax authorities share information. If you’re not paying local taxes correctly, it can trigger federal audits. Don’t assume local tax issues stay local.

Best Practices for Staying Compliant

Here’s what successful businesses do to stay out of trouble with their Berkheimer tax administrator.

Use payroll software that integrates with Berkheimer (like ADP, Gusto, or Paychex). These systems automatically calculate withholding, file returns, and make payments. They eliminate human error.

Yes, it costs money. But it’s cheaper than penalties and the stress of audits.

Keep records for every employee, every pay period, showing:

• Gross wages
• Withholdings by tax type
• Net pay
• Deductions
• Employment start and end dates

Store these digitally and back them up. If Berkheimer audits you, these records are your defense.

At the end of each month, compare your payroll records to what you filed with Berkheimer. Catch discrepancies early. Don’t let them compound.

Log into your account every Friday and check for:

• New notices or messages
• Upcoming deadlines
• Payment confirmations
• Account balance

This takes 5 minutes and prevents most problems.

Create a calendar (digital or paper) showing every filing deadline for every jurisdiction where you have a Berkheimer account. Add reminders 5 days before each deadline.

If your business is complex (multiple locations, frequent employee changes, significant payroll), hire a CPA or tax professional to oversee Berkheimer compliance. It’s an expense, but it’s insurance against costly mistakes.

For guidance on payroll tax responsibilities, the Investopedia article on payroll taxes provides excellent context.

If Berkheimer initiates an audit, respond within the deadline they provide (usually 10-30 days). Provide the documents they request. Don’t ignore it hoping it goes away.

If you believe the audit is wrong, request a hearing. You have appeal rights, but you have to use them proactively.

Multi-State Considerations

If you operate in multiple states or have employees across state lines, Berkheimer administration gets more complex. Here’s what you need to know.

Ohio has different local tax rules than Pennsylvania, which differs from Kentucky. A Berkheimer tax administrator in one state might handle different tax types than in another.

For example:

• Ohio cities often tax earned income; Pennsylvania focuses on net profits taxes.
• Some jurisdictions tax non-residents; others don’t.
• Withholding rates vary widely.

You need separate accounts for each jurisdiction. You can’t combine them.

If your business operates in multiple locations, you need to allocate payroll and income correctly. An employee who works 50% in City A and 50% in City B should have withholding split accordingly.

This is where mistakes happen. You withhold everything to City A because that’s where your office is, but the employee works in City B half the time. Now City B is auditing you.

Use payroll software that can handle multi-state withholding. Manually calculating it across jurisdictions is error-prone and time-consuming.

Alternatively, work with a payroll service or CPA who specializes in multi-state compliance. The fee is worth it for accuracy and peace of mind.

Create a master spreadsheet or use accounting software to track:

• Each jurisdiction where you operate
• Filing frequency for each
• Deadline dates
• Payment history
• Current balance or credit

This becomes your single source of truth. When you’re managing three or more jurisdictions, this system is non-negotiable.

For additional context on state tax obligations, consult the NerdWallet guide on state income taxes.

Remember: local taxes don’t replace federal payroll taxes (Social Security, Medicare, federal income tax withholding). You owe both. Don’t assume that paying Berkheimer means you’ve satisfied all tax obligations.

If you have questions about how local and federal taxes interact, consult your accountant or the IRS self-employment tax page.

Frequently Asked Questions

What happens if I pay Berkheimer late?

– Late payment penalties typically start at 5% of the unpaid tax amount, plus interest that accrues daily. If you’re more than 30 days late, the penalty increases to 10%. Some jurisdictions add additional non-filing penalties. The longer you wait, the worse it gets. If you know you’ll be late, contact Berkheimer immediately to discuss payment arrangements or reasonable cause abatement.

Can I appeal a Berkheimer audit or penalty?

– Yes. Berkheimer provides an appeal process, typically involving a written response to audit findings, followed by a hearing if needed. You must request the appeal within the deadline specified in the audit notice (usually 30 days). Provide documentation supporting your position. If you believe the audit is incorrect, don’t ignore it—use the appeal process. Consider hiring a tax professional to represent you if the amount is significant.

Do I need to file separately with my city and Berkheimer?

– No. When your city or county contracts with Berkheimer, you file exclusively with Berkheimer. They handle distribution to the municipality. Filing directly with the city creates duplicate filings and can trigger penalties. Always confirm that your jurisdiction uses Berkheimer before filing elsewhere.

What if I have employees in multiple cities served by Berkheimer?

– You’ll need separate Berkheimer accounts for each city (or jurisdiction). Each account has its own deadlines, withholding rates, and filing requirements. Use accounting software to manage multiple accounts simultaneously. Don’t try to consolidate them—each jurisdiction requires separate reporting.

How do I correct a mistake on a Berkheimer return I already filed?

– File an amended return as soon as you discover the error. Include a cover letter explaining what was wrong and why. Submit it through your Berkheimer portal or by mail (keep proof of mailing). The sooner you correct it, the better your position if audited. Filing amendments proactively shows good faith and can help with penalty abatement.

Is Berkheimer the same as the IRS?

– No. Berkheimer is a third-party tax administrator that handles local and municipal taxes. The IRS handles federal income and employment taxes. You owe both. Missing Berkheimer payments doesn’t mean you’ve satisfied federal obligations, and vice versa. Coordinate both to stay compliant.

Can I use a tax professional to handle my Berkheimer account?

– Yes. You can authorize a CPA, tax attorney, or payroll service to manage your Berkheimer account on your behalf. They can file returns, make payments, and respond to notices. This is especially helpful if you have complex payroll or multiple jurisdictions. Confirm the professional has Berkheimer experience before hiring.

What documents should I keep for Berkheimer audits?

– Keep payroll records, W-2s, 1099s, bank statements, cancelled checks, and any correspondence with Berkheimer for at least 7 years. Digital copies are fine, but back them up. If audited, these documents prove your withholding calculations and payments. Poor documentation makes audits much worse.