Photo via Getty Images. 3 To the extent a Philadelphia non-resident works at an employer in the city, the non-resident must pay the wage tax if the employee works at the office, or the employer allows the non-resident to work from home for the sake of convenience. The coronavirus pandemic will cost Philadelphia hundreds of millions of dollars in lost tax revenue and emergency spending, forcing the city to cut its budget and reduce services and staffing, Mayor Jim Kenney said Tuesday. The wage tax rate for residents of Philadelphia was not increased and remains at 3.8712% (.038712). COVID-19; SUI Tax Wage Limit. If there’s one piece of good news, it’s that outdoor dining has proven to be extremely popular and could be a boon to the industry in the warmer months to come. “We had 11 straight years of job growth in the City of Philadelphia,” Paul Levy, the executive director of the Center City District, said last week. January 19, 2021. The wages of faculty and professional staff who are working remotely outside of the City of Philadelphia are not applicable to City Wage Tax during this period of remote work. Every day. With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. Here’s a sector-by-sector look at how the city is faring. The wage tax had previously been on track to fall to 3.6997% for residents and 3.2953% by 2022. Stephanie K. Rawitt | As in most big cities, those declines have forced Philly into significant budget cuts. 2020 has been a difficult year for the Philly economy. Under some curcumstances, you may request a refund of wage tax withheld. For example, the city of Philadelphia imposes a wage tax on all resident and non-resident individuals working in the city. PHILADELPHIA (KYW Newsradio) — Philadelphia officials explored some of the long-term impacts of COVID-19 at a City Council hearing Wednesday. The exemption from the wage tax only applies if a Philadelphia-based employee is required to work outside the city. Ayla Wolf, Was Part of Capitol Attack, Rachel Levine Is Saving Pennsylvania Amid Coronavirus | phillymag.com, Donald Trump at Wharton: Fact Checking the President’s Time at Penn. Philadelphia local wage tax is separate from your PA state return and there is no available deduction for these taxes on your state return. That suggests that even as huge swaths of employees work from home, companies haven’t torn up their leases. 2020 pushed many in-house counsel out of our comfort zone by compelling us to adapt to a virtual model of lawyering that includes interviewing, training, and interacting with clients and colleagues remotely. So if your company decides remote work was so effective during the coronavirus pandemic that it is closing its offices forever, non-Philadelphia employees can stop paying the tax. $("#sub0").append( pday ); Dynamically explore and compare data on law firms, companies, individual lawyers, and industry trends. July 28, 2020 . Recently, Philadelphia issued guidance stating that nonresident employees of Philadelphia employers are not subject to the city’s wage tax for the time they are required to work outside the city. | Non-residents make up about 40% of Philadelphia’s wage tax payers, the largest portion of the city’s tax revenue. October 29, 2020. Philadelphia During the COVID-19 Pandemic The following Frequently Asked Questions contain information about how to temporarily claim exemption from withholding of Philadelphia Wage Tax: Q: Can the university stop withholding Wage Taxes from the pay of non-resident employees who are working outside of the City at the direction of the university? But people are still buying things, and the Center City real estate market is hot. Read all our reporting here. And despite a reduction in Business Income and Receipts Tax rate, from 6.45 to 6.2%, Philadelphia remains one of only a half-dozen big American cities to impose what critics call a ‘profitability penalty’ by collecting taxes not only on revenue, but also on net profits. City Council did recently pass a new construction tax, which could eventually raise $30 million in annual revenue to help fund affordable housing, but it won’t kick in until 2022. 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