Employees with Philadelphia Non-Resident Wage Tax
April 9, 2020
Under the current circumstances, most employees are being asked to work from home. Therefore, the wages of employees who are working remotely outside the City of Philadelphia are not applicable to City Wage Tax. Effective April 1, 2020 for employees paid monthly and March 28, 2020 for employees paid biweekly, the Philadelphia Non-Resident Wage Tax payroll deduction will be turned off for the applicable employee population. For New Jersey residents who currently elect to waive the New Jersey State Tax, the NJ tax will be deducted during this time period. Once we return to normal operations, the Philadelphia Non-Resident Wage Tax and the New Jersey Tax will be restored to the status as of March 2020.
For the mandated remote working time in March, employees will need to submit a Philadelphia Wage Tax Refund Petition next year in 2021. Instructions for the form can be found here.
If you have any questions, please contact the Payroll Department at email@example.com.