out of state employers and wage tax
Hi. I switched to a new company in NJ and still live in Philly. The old company was also in NJ and always handled my city wage tax deduction. The new company states that they don't do that. Aren't they required to? If not, how do I go about paying it myself?
My NJ company didn't used to, they are starting in 2012.
Register yourself at the City of Phila revenue department website - City of Philadelphia | Revenue Department
They sent me a quarterly tax payment booklet to mail in my city tax.
Ok thanks! Somehow the fact that I have to sign the check is going to make it feel more painful than usual, lol
I assume they are withholding your PA Income tax, else that's another quarterly check.
As has already been mentioned, you must set up an account with the Phila Revenue Dept. They will then send you a booklet with payment coupons, to be sent in quarterly. They will not accept checks without coupons. They cannot accept electronic payments of any sort.
They love to assess large interest and penalty charges for lateness, even when you're not late. It will be difficult to resolve as they're close to impossible to reach.
Some tips from my having done this for the last six years:
- Send your payment two week in advance of the due date.
- Put the due dates in your calendar so you won't forget them.
- Send payments via certified mail with return receipt option. I know it's a hassle, but I've had them lose checks on a few occasions and it's been difficult (and expensive) to resolve.
- Watch your checking account after sending payments. Sometimes it can take over a month to be cashed. Other times it's just lost or mis-deposited.
I wish I was making this up, but it's true.
This is my first year paying the taxes myself (my employer also refuses to do so). I've paid quarterly and now I'm wondering what happens at the end of the year? I was told I'd receive some kind of end-of-year reconciliation, however I still haven't gotten anything and calling/emailing them is pretty much worthless. Did you receive any year-end documents yet?
You must complete and mail an "employee earnings tax reconciliation" (no form number) by 4/17/2012. You can find it here: http://www.phila.gov/revenue/pdfs/2011earnings.pdf
I never receive any year end summary statements. I don't think they send them. I just add up all the canceled checks to get the amount paid.
Last edited by JasonMcElroy; 01-18-2012 at 11:31 AM.
Reason: correct form found
Thanks for the additional info. Thankfully they are handling PA tax. I was going to try and find a way to pay the city online since I rarely ever pay things with dead tree checks but maybe certified mail is the way to go.
I'm new to the pay-your-own arena of Philly wage tax (although I've lived here for dogs' years). Anyway, I gave a lecture for a company in Illinois in 2011 (and gave the lecture in Illinois). I got a small 'honorarium' for it - so small, it probably cost them more to generate the check than the amount of it! I don't want to run afoul of the Lords of the Wage Tax, so how do I pay my city tax on it? By the way, the honorarium was reported to me on a 1099-MISC, so do I even owe wage tax on it? The forms all refer only to W-2 wages.
I may (or may not) continue to do a little work for this company occasionally. So do I register for the coupons? Needless to say, having it withheld is not going to be an option, and I'm sure that just sending a check for the amount I must owe (by the percentages) sounds like sheer folly. And hiring an accountant to handle this would cost a minimum of 4x the measly honorarium!
Heck, I can't even look at the _process_ for applying for coupons, because https://ework.phila.gov/revenue says it can ONLY be read by Internet Explorer. That's nice. I run a Mac, and so does everyone I work with. I rarely boot into Windows, and I use Firefox on that, but I guess I'll have to download IE on Windows.
Groan... I hate this already!
Last edited by Beutelratte; 02-19-2012 at 10:35 PM.
PA Act 32
PA Act 32 requires all PA employers to have their employees complete a form documenting where they live and where they work. I know a West Coast Company with 3 employees, which has yet to get their Payroll S/W working on a deduction. Eventually the employees will have a retroactive catch-up paycheck.
Act 32 - Local Earned Income Tax | newPA.com
PICPA - Get Ready for Act 32 Implementation
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