Philadelphia's City Wage Tax was reduced slightly on July 1, 2019, as part of an overall plan to bring down the much-maligned rate. | Philadelphia: The city’s Department of Revenue issued revised wage tax policy guidance [PDF 134 KB] for non-resident employees and reiterated that non-resident employees who work for Philadelphia-based employers are not subject to wage tax during the time they are required to work outside of Philadelphia, including working from home. Legal Compass includes access to our exclusive industry reports, combining the unmatched expertise of our analyst team with ALM’s deep bench of proprietary information to provide insights that can’t be found anywhere else. The exemption from the wage tax only applies if a Philadelphia-based employee is required to work outside the city. All Rights Reserved. Officials indicated they would also freeze planned reductions in the city’s wage and business taxes and raise the city’s parking tax from 22.5% to 27%. Please consult your local tax authority for specific details. The tax rate, currently 3.8809 percent for Philadelphia residents and 3.4567 percent for nonresidents who work in the city, gets reduced a little bit every year. The pandemic’s impact on Philadelphia’s revenues has been immediate. May 1, 2020 : PDF. Unemployment peaked at 18 percent in June. In the severe impact scenario, Philadelphia stands to lose about $259.4 million in wage tax revenue through the duration of the coronavirus crisis. Some city permit fees would also rise. One drawback with the X tax is that household consumption is not taxed directly as with a VAT or PET, rather it is approximated by taxing wages. If school reopening leads to an increased COVID incidence of greater than 0.355 new community cases per … The new Wage Tax rate for residents of Philadelphia is 3.8809% (.038809). Three bills are scheduled for discussion during a meeting of City Council’s Committee of the Whole on December 1, 2020—Bill No. 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. Thousands of workers for city-based businesses who live in the suburbs and have been working from home during the COVID-19 pandemic are entitled to a city wage tax refund … The Hotel Tax, Amusement Tax, Liquor-by-the-drink tax, and Use and Occupancy taxes have all basically been zeroed out. Still, in a new report about the future of Center City, the CCD says there’s reason for optimism — okay, tepid optimism — as the year winds down. In other words: People are buying things — just not the things that many Center City retailers have for sale. }); Join this webcast as experts discuss how firms can transition to the cloud—piecemeal or entirely. Ridership dropped nearly 90 percent in the first months of the pandemic and still isn’t close to approaching “normal”: As of October, Regional Rail ridership was at just 18 percent of its January 2020 total, while the Market-Frankford El, Broad Street Line and trolleys were each at about a third of their January ridership. The gross earnings were less than $10,000. Tailored just for you. $("#sub1").append( pday ); Reports, Reports, Reports; Blocked vs. Exempt ; Tax Adjustments; IRS Tax Refund Check; How to Complete 2020 New Form W-4; Test Your Payroll Tax Knowledge. A weekly, curated selection of our international content from around the globe, across the business of law, in-house, regulatory, technology and more, with expert insights from our senior editors. “Five or six years of that were wiped out in one month with the pandemic and the stay-at-home order.”. Gary Martin Hays & associates P.C the amendment only applies to payments that a person receives from an in... 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