Philadelphia magazine is one of more than 20 news organizations producing Broke in Philly, a collaborative reporting project on solutions to poverty and economic mobility in the city. Philadelphia officials explored some of the long-term impacts of COVID-19 at a City Council hearing. 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 … Home; Telecommuter COVID-19 Employer and Employee FAQ; Telecommuter COVID-19 Employer and Employee FAQ. 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. These businesses account for 99.7 percent of all firms, 47.3 percent of employment, 40.7 percent of annual payroll, and about one-third of the growth in employment and wages. 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 … Citywide, some of the industries to experience the biggest losses in employment between March and October of this year include leisure and hospitality (36.4 percent loss), education (7.8 percent), wholesalers (eight percent), and transit and utilities (5.7 percent). The tax applies to payments that a person receives from an employer in return for work or services. Legalweek(year) will bring together thousands of legal professionals for a series of 5 innovative virtual legal events. In fact, roughly 40 percent of the city’s tax revenues derive from the Philadelphia Wage Tax (Philadelphia is unusual among major U.S. cities in that it derives most of its revenue from taxes on personal and business income rather than on property or sales taxes). But don’t expect big savings — for someone with a $50,000 salary, the reductions planned for fiscal year 2020 would mean about $5 … P.C. Wage Tax (employers) Get a tax account; Register a business; Report wage theft violation ; Find a minority, woman, or disabled-owned business; Report possible fraud, waste, or other issues on contracts; Starting a business. PHILADELPHIA (KYW Newsradio) — Philadelphia officials explored some of the long-term impacts of COVID-19 at a City Council hearing Wednesday. Economy, Press Release. Coronavirus-Related Leave After the FFCRA Expires, The Three Keys to a Successful B2B ABM Program, Controlling the Chaos: Simplify Your Global Entity Experience. For questions call 1-877-256-2472 or contact us at [email protected], 'My Career Is Basically Over': Working Parents Offer Pleas for Empathy From Law Firms, Cooley's Elizabeth Prelogar Will Return to DOJ Solicitor Office as Top Deputy, Emergency Stay: Supreme Court Halts in-Person Jury Trial in Houston, NY Court Employee, Son of Retired Judge, Accused of Threat to ‘Go Back to Capitol’ and Kill Government Officials, Law Prof Who Spoke at White House Rally Abruptly Retires Amid Calls for His Firing. Bill No. 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. 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 … 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. by Laura McCrystal, Updated: June 25, 2020 . Some city permit fees would also rise. Coronavirus Coverage. 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. var myDate = new Date(parseInt(1609778287000)); The long-anticipated $700 million Live! It will be updated as more information and resources become available. Unemployment peaked at 18 percent in June. Under some curcumstances, you may request a refund of wage tax withheld. Ex... We are pleased to welcome Brian Riehl to the firm as an associate. In your inbox. 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. What’s Next: More pain. Although court leaders announced in the fall that they planned to begin holding civil jury trials January 21 and criminal jury trials around the same time, the number of COVID-19 cases have skyrocketed in Philadelphia and beyond. News about the coronavirus is changing quickly. The exemption from the wage tax only applies if a Philadelphia-based employee is required to work outside the city. January 14, 2021, Employees will still require leave if they test positive for the virus, are exposed to the virus, or need to tend to children who are physically not in school. Wage Tax refund requests for 2020 can be submitted with accompanying W-2 forms starting in 2021. Sponsored by: Computershare Philadelphia Announces Relief for Property and Business Taxes and Provides Wage Tax Guidance for Displaced Workers by the Tax Group The City of Philadelphia Revenue Department announced (on its website here ) administrative extensions to the due dates for 2020 real estate taxes (originally due March 31, 2020) and 2019 business taxes (originally due April 15, 2020). This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas. | If you're a human and see this, please ignore it. Rapid COVID-19 testing: No appt. Your article was successfully shared with the contacts you provided. Any paycheck that businesses issue with a pay date after June 30, 2018 must have Philadelphia City Wage Tax withheld at the new rate. The new Wage Tax rate for residents of Philadelphia is 3.8809% (.038809). Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR! Non-residents make up about 40% of Philadelphia’s wage tax payers, the largest portion of the city’s tax revenue. Sponsored by: DocuSign Unemployment peaked at 18 percent in June. }); Find out how B2B marketers in the legal, financial, insurance, and commercial real estate markets are using ABM to successfully drive leads and get business from key accounts. Note that clicking the link below will block access to this site for 24 hours. Schedules to withhold and remit the tax to the City … 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. More than 100,000 Philadelphia jobs were lost between March and April — 14 percent of the total workforce. One reason for moderate optimism: The latest coronavirus stimulus package, set to be passed by Congress on Monday, includes a $14 billion allocation for mass transit, which should help SEPTA bridge the gap between now and when workers return to their offices. LIVE UPDATES. Wage Tax policy guidance for non-resident employees . Philadelphia Legislative Update. The wage tax had previously been on track to fall to 3.6997% for residents and 3.2953% by 2022. “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.” The New Construction Will Provide Housing, a Grocery and … 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. 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%. ALM Marketing Services June … | In addition, owners of closely held firms may be able to shift income from the firm tax rate to a … Chamberlain, Hrdlicka, White, Williams & Aughtry, Unleashing Our Business Ingenuity in 2021: The Evolving Role of In-House Counsel, "Thank God": First Judicial District Postpones Civil, Criminal Jury Trials Until March, What Comes Next? var myDate = new Date(parseInt(1610344804000)); Some states have been proactive during the pandemic, issuing temporary guidance including waiving nexus and even revising apportionment rules. Joe Biden unveils $1.9 TRILLION in new COVID relief including $1,400 checks to take total to $2,000, a $15 minimum wage and $160B to solve 'dismal' vaccine rollout as … All estimates are based on publicly available data. VIRUS TRACKER. Summary: The Penn Wharton Budget Model COVID-19 Tracker provides daily, real-time estimates of economic activity and of the evolution of the COVID-19 pandemic at the state level. 200653. Please consult your local tax authority for specific details. As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. 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%. var pday = moment(myDate).format("MMMM DD, YYYY"); Unemployment is above 10 percent. The outbreak of COVID-19 (caused by the coronavirus) may have impacted sales tax filing due dates in Philadelphia. 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. What’s Next: Restaurateurs in Philly and across the country have been pleading for help for months, but the new $900 billion COVID stimulus bill doesn’t include direct grants to the restaurant industry. Philadelphia local wage tax is separate from your PA state return and there is no available deduction for these taxes on your state return. | The Philadelphia Department of Revenue has not changed its Wage Tax policy during the COVID-19 pandemic. TT also says that there we are not eligible for the Philadelphia tax credit. 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? }); Join this webcast as experts discuss how firms can transition to the cloud—piecemeal or entirely. All Rights Reserved. COVID-19; SUI Tax Wage Limit. 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. The pandemic’s impact on Philadelphia’s revenues has been immediate. 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. $("#sub1").append( pday ); The new Wage Tax rate for non-residents of Philadelphia who are subject to the Philadelphia City Wage Tax is 3.4567% (.034567). COVID-19 Resources This page provides information about economic resources for workers, job seekers, and employers who may be impacted by the COVID-19 pandemic. OH and PA. … “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. A: Yes. “We need the rest of the cavalry to come back to support city businesses,” Levy said. The WIPL.UK Awards honors the industry standouts and rising stars who are making a mark within the profession. 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. document.addEventListener('DOMContentLoaded', function() { How U.S. states tax wage income may be forever changed by remote work Eric Rosenbaum 11/5/2020 Off-duty Virginia police officers arrested for their roles in the U.S. Capitol riot Max Mitchell The tax hikes would be part of a broad attempt to close a $600 million budget deficit that has ballooned amid the coronavirus pandemic. Virtual. The Tax Warriors at Drucker & Scaccetti have developed a COVID-19 tax resource center for taxpayers, journalists, wealth advisors and other interested parties. 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. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Accordingly, the amendment only applies to workers in Philadelphia who are not covered by the FFCRA. 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. One big concern is the city’s reliance on the wage … The Hotel Tax, Amusement Tax, Liquor-by-the-drink tax, and Use and Occupancy taxes have all basically been zeroed out. Superb business litigation boutique seeks 8+ year attorney with modest practice and entrepreneurial spirit to join well-established firm. The proposed $1,400 checks, on top of $600 provided in the most recent bill, would bring the total to the $2,000 that Biden has called for. Law Offices of Gary Martin Hays & Associates YONG KIM / Staff Photographer . Editor's Note . The city’s first COVID-19 vaccinations began at hospitals across the city last week. Find location and zoning information; Trade licenses; Business licenses, permits, and approvals; Support for businesses. Roughly 20 percent of Center City restaurants currently offer some kind of outdoor dining option, and since June, outdoor seating capacity just in the Center City District has grown from 3,000 to 9,500 seats. The Legal Intelligencer. var myDate = new Date(parseInt(1610638906000)); The full set of underlying data is available for download. 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. 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. The wage tax rate for residents would remain at 3.8712%. 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. According to Ragan, those employees could apply to the city for a refund of those taxes, as long as their employer approves. Here’s a sector-by-sector look at how the city is faring. The new wage tax rate for non-residents of Philadelphia, who are subject to the Philadelphia city wage tax, is 3.5019% (.035019). Dynamically explore and compare data on law firms, companies, individual lawyers, and industry trends. $("#sub2").append( pday ); The newest COVID stimulus bill doesn't include aid for restaurants or city governments. On May 4, 2020, the Philadelphia Department of Revenue updated its guidance for withholding the Wage Tax from nonresident employees who are working in the city temporarily due to COVID-19; the previous guidance was published on March 26,2020. Site Map / With outdoor dining becoming more difficult as the weather gets colder, that number figures to grow in the coming months. With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. Information about Form W-2, Wage and Tax Statement, including recent updates, related forms and instructions on how to file. From Speaking of refunds, there is some good news for nonresident employees of Philadelphia companies who were paying the full wage tax but who have been mostly working from home outside of the city. We all know the food-service industry isn’t doing well. As in most big cities, those declines have forced Philly into significant budget cuts. 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. Casino & Hotel Philadelphia is putting the final touches on the 510,000-square-foot development in preparation for its grand opening on … Not a Lexis Advance® Subscriber?Subscribe Now, Not a Bloomberg Law Subscriber?Subscribe Now. The incremental cuts over the years aren’t enough. About Us / 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. 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 … “We have an outdated image of Center City that we really need to work to recover from,” said Levy. With unemployment surging, wage taxes — which comprise roughly 45% of the city’s annual revenue — have obviously taken a hit. Summary: In an attempt to prevent and reverse layoffs due to coronavirus, the recently-passed CARES Act established a new lending program targeted at businesses with 500 or fewer employees. Copyright © 2021 ALM Media Properties, LLC. Of course, that assumes most restaurants will still be around in the warmer months, which is far from guaranteed. 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. $("#sub0").append( pday ); × Governor Wolf Announces Investment of Tax Credits in North Philadelphia to Build Transformative Mixed-Use Development. Household tax returns may be simpler than under the current income tax system because households report only wage income and not capital income. February 02, 2021 - July 14, 2021 200366, Bill No. But if your company simply decides to offer an option of working from home one … The current city wage tax rate is 3.4481%. Both options are priced the same. Post-COVID lungs are FAR worse than 'any type of terrible smoker's lungs' with severe scarring and damage Dr Brittany Bankhead-Kendall, a trauma surgeon in Texas, showed three lung X … | 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. The Philadelphia Department of Revenue has provided more information about its Wage Tax policy for non-resident employees during the COVID-19 pandemic. To amend a 2019 BIRT return, contact your tax professional, or use the City of Philadelphia’s eFile/ePay website: Office vacancies have remained flat at around 13 percent for most of the year, according to the CCD’s report. 2020 SUI Tax Wage Limit; 2019 SUI Tax Wage Limit; 2018 SUI Tax Wage Limit; 2017 SUI Tax Wage Limit; Local Tax Snapshot. Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. That’s just one indication of how the first 10 months of the pandemic walloped Philadelphia. Tax revenue and transit ridership remain down. January 15, 2021. var pday = moment(myDate).format("MMMM DD, YYYY"); Visit your My Account page to make your selections. A: Yes. As of October, home sales were actually up 41 percent in Center City over the prior year, as were median sales prices, up 16 percent to $242,000. The Mayor himself recently described the city as “semi-broke.”And while state and local officials tried to lobby the federal government for inclusion in the COVID relief package, they were unsuccessful. Ayla Wolf, Was Part of Capitol Attack, Rachel Levine Is Saving Pennsylvania Amid Coronavirus |, Donald Trump at Wharton: Fact Checking the President’s Time at Penn. The incremental cuts over the years aren’t enough. 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. This is a current status report on a number of key items, including several changes since our October 22, 2020, update. 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. Taking the current cost of COVID as approximately $38,000 per new infection and our estimates of lifetime wage income loss to students from one month of school shutdown as roughly $13,500, we approximate a threshold for school closure versus reopening for October. The wage tax had previously been on track to fall to 3.6997% for residents and 3.2953% by 2022. Non-resident employees who work for Philadelphia-based employers are not subject to Philadelphia Wage Tax during the time they are required to work outside of Philadelphia. Read all our reporting here. So, in the words of King George from the Broadway musical, "Hamilton," “What comes next?”. What’s Next: Unlike more residential commercial corridors like Passyunk and Frankford avenues, Center City can’t survive without office workers. What’s Next: While we’re doing better than New York when it comes to total employment and unemployment rate — Philly has lost 7.6 percent of its pre-COVID jobs, compared to 11 percent for the Big Apple, and NYC’s unemployment rate is 13 percent — no one would describe Philly’s 10.6 percent unemployment rate as “doing well,” and getting that figure below double digits is paramount. PHILADELPHIA ZONING, LAND USE, AND CONSTRUCTION COVID-19 UPDATE. Laura Belmont and Miriam Enriquez | This article discusses the key responses and guidance that the department has issued thus far.