June 10, 2022
In 2019, the City of Philadelphia issued a memo indicating that Philadelphia universities should withhold Wage Tax on 50 percent of the stipend amount it pays any graduate student who renders services to the university. For example, if a graduate student receives an annual stipend of $15,000, the university should withhold and remit Wage Tax on $7,500.
Effective May 2022, graduate students will see this reduction in applicable wage tax directly in their pay checks. The Philadelphia Wage Tax will only be applied to 50 percent of the stipend for the pay. Additionally, corrections will be made for all prior applicable wages in 2022. The result of the correction will be an increase in net pay.
In order to receive any applicable refunds for 2019-2021, students must follow a petition process outline on the Human Resources website.
We encourage all graduate students who received a stipend from Drexel between 2019-2021 to review the website and complete the process to file a petition for refunds for 2019-2021. Communications will be going to all affected parties with more information, including alumni.