Wage Tax policy guidance for non-resident employees . That’s just one indication of how the first 10 months of the pandemic walloped Philadelphia. 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. As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Tailored just for you. All Rights Reserved. Dynamically explore and compare data on law firms, companies, individual lawyers, and industry trends. 200653. Not a Lexis Advance® Subscriber?Subscribe Now, Not a Bloomberg Law Subscriber?Subscribe Now. 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. Commentary Philadelphia’s Tax Responses to the COVID-19 Pandemic Since the COVID-19 health crisis began, the city of Philadelphia’s Department of Revenue has … Photo via Getty Images. $("#sub2").append( pday ); There have been at least 50 permanent Philly restaurant closures, according to one online tracker, and of the more than 1,000 restaurants in the Center City District alone, more than 260 had shut down operations — at least temporarily — as of September. The wage tax rate for residents would remain at 3.8712%. Stimulus checks, jobless aid and PPP small-business loans are part of the $900 billion Covid-19 relief passed by Congress. | We all know the food-service industry isn’t doing well. So, in the words of King George from the Broadway musical, "Hamilton," “What comes next?”. 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. In the severe impact scenario, Philadelphia stands to lose about $259.4 million in wage tax revenue through the duration of the coronavirus crisis. The IRS may have postponed federal income “Tax Day” from April 15 to July 15, 2020, due to the COVID-19 pandemic, but for the 50 states and thousands of local taxing jurisdictions, “Tax Day” this year will include varying due dates for different tax types. Form W-2 is filed by employers to report wages, tips, and other compensation paid to employees as well as FICA and withheld income taxes. Rapid COVID-19 testing: No appt. }); In response to the ongoing pandemic, many federal agencies and state legislatures have revised their rules to allow for broader utilization of online solutions to remotely conduct business. With outdoor dining becoming more difficult as the weather gets colder, that number figures to grow in the coming months. Live in NJ, but work in Philadelphia, PA. PA has a reciprocity agreement with NJ, so I know that I don't need to file with PA, but the Philadelphia city wage tax should be refunded. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team. Philadelphia officials explored some of the long-term impacts of COVID-19 at a City Council hearing. Bruce L. Castor, Jr. to our ranks of trial lawyers. Unemployment peaked at 18 percent in June. YONG KIM / Staff Photographer . var myDate = new Date(parseInt(1610344804000)); 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 … “Non-resident employees based in Philadelphia whose employers require to work from home as a result of the COVID-19 pandemic are not subject to City Wage Tax withholding during that time.” Ex... We are pleased to welcome Brian Riehl to the firm as an associate. President-elect Joe Biden is proposing a $1.9 trillion plan to expand coronavirus vaccinations, help individuals, jump-start the economy and provide direct stimulus checks of … Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Terms of Service/ The new Wage Tax rate for non-residents of Philadelphia who are subject to the Philadelphia City Wage Tax is 3.4567% (.034567). 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. As in most big cities, those declines have forced Philly into significant budget cuts. In 2015 I filed Wage Tax Refund Petition for two years (2013 and 2014) and received a partial refund as during these years I performed the work outside of Philadelphia. Sales tax in October was down seven percent when compared to the same period, and the hotel tax totaled just $1.9 million in October, compared to $7.1 million the year before. The city’s parking tax would increase from 22.5% to 27% under Kenney’s proposal, and the nonresident wage tax rate would increase from 3.4481% to 3.5019%. What's New for Interactive Electronic Signing in 2021? While shopping trends (and retail jobs) have shifted away from the clothing and luxury stores that populate much of Center City, employment in the retail sector citywide is down only half a percent compared to March 2020 levels — the lowest decline in any industry. The New Construction Will Provide Housing, a Grocery and … One big concern is the city’s reliance on the wage … Republicans are already lining up to oppose President-elect Joe Biden's $1.9 trillion COVID-19 rescue plan that he debuted in Wilmington, Delaware Thursday night. Please consult your local tax authority for specific details. COVID-19 cases are at an all-time high. Editor's Note . Casino & Hotel Philadelphia is putting the final touches on the 510,000-square-foot development in preparation for its grand opening on … The newest COVID stimulus bill doesn't include aid for restaurants or city governments. In other words: People are buying things — just not the things that many Center City retailers have for sale. Use & Occupancy Tax guidance during yellow phase reopening PDF: Information about Use & Occupancy (U&O) Tax concerning businesses during the yellow phase of COVID-19 reopening. About Us / COVID-19 GUIDE. Non-residents make up about 40% of Philadelphia’s wage tax payers, the largest portion of the city’s tax revenue. The wage tax rate for residents of Philadelphia was not increased and remains at 3.8712% (.038712). Laura Belmont and Miriam Enriquez | The pandemic’s impact on Philadelphia’s revenues has been immediate. PHILADELPHIA (KYW Newsradio) — Philadelphia officials explored some of the long-term impacts of COVID-19 at a City Council hearing Wednesday. | The City of Philadelphia’s tax revenue plunged 47% to $385 million in April, the latest indicator of Covid-19's widespread impact on local economies. City wage tax collections in October were down 30 percent year over year, at least in part because many suburbanites who normally work in the city and pay the wage tax no longer have to do so while working from home. Every day. The Philadelphia Department of Revenue has provided more information about its Wage Tax policy for non-resident employees during the COVID-19 pandemic. var myDate = new Date(parseInt(1610638906000)); In your inbox. 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. That means a New Jersey resident who works in Philadelphia and pays city wage taxes can claim a credit for the taxes paid to Philadelphia. January 19, 2021. A: Yes. The tax applies to payments that a person receives from an employer in return for work or services. 200556, and Bill No. What’s Next: Things may be rosy for homeowners and developers, but 31 percent of Philly-area renters report having missed their last month’s rental payment, and six percent are behind on their mortgages. 2020 SUI Tax Wage Limit; 2019 SUI Tax Wage Limit; 2018 SUI Tax Wage Limit; 2017 SUI Tax Wage Limit; Local Tax Snapshot. Effective April 1, 2020, the Philadelphia Non-Resident Wage Tax will be turned off for the applicable employee population. February 02, 2021 - July 14, 2021 According to Ragan, those employees could apply to the city for a refund of those taxes, as long as their employer approves. 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. July 28, 2020 . “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. Visit your My Account page to make your selections. | Coronavirus-Related Leave After the FFCRA Expires, The Three Keys to a Successful B2B ABM Program, Controlling the Chaos: Simplify Your Global Entity Experience. P.C. Of course, that assumes most restaurants will still be around in the warmer months, which is far from guaranteed. How do I know if I am eligible to stop paying the wage tax? Get the timely legal news and critical analysis you cannot afford to miss. 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. If school reopening leads to an increased COVID incidence of greater than 0.355 new community cases per … Tax revenue and transit ridership remain down. But don’t expect big savings — for someone with a $50,000 salary, the reductions planned for fiscal year 2020 would mean about $5 … Accordingly, the amendment only applies to workers in Philadelphia who are not covered by the FFCRA. The new Wage Tax rate for residents of Philadelphia is 3.8809% (.038809). There are lots of reasons for that trend, not least the fact that many people still aren’t inclined to spend money on discretionary items like the ones you might find along Walnut Street. Marchers leave City Hall during The Urban League of Philadelphia's "Fathers Fighting for Families" March Against Black Injustice on Sunday. More than 40 percent of the downtown workforce lives outside of Center City, and on any given weekday before the pandemic, 267,000 commuters took SEPTA to their jobs downtown. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information. The Hotel Tax, Amusement Tax, Liquor-by-the-drink tax, and Use and Occupancy taxes have all basically been zeroed out. For more information about the current policy, you can read the guidance. For information on best practices to prevent the spread of COVID-19 and what do to if you’re sick, please visit the CDC's website. LIVE UPDATES. 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