PHILADELPHIA WAGE TAX REDUCTION
EFFECTIVE JULY 1, 2009
The City of Philadelphia has reduced the Wage Tax for the second half of 2009. This rate is applicable for taxable compensation paid on or after July 1, 2009 through December 31, 2009.
The reduced rates are as follows:
Residents of Philadelphia 3.9296% (.039296)
Non-Residents 3.4997% (.034997)
Wage tax is to be withheld and remitted at the rate in effect on the date of the paycheck; for example, a check is dated July 1 for the period June 16, 2009 to June 30, 2009, the wage tax should be withheld at the rates effective as of July 1, 2009. The controlling factor determining which rate to use is the rate in effect on the date the taxable compensation is actually paid to the employee.
Please contact Terry Martin or Hal Margolit, Tax Managers, at 215-675-8364 with questions or if you require assistance implementing this process.
