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February 2, 2021
2021-0239

Philadelphia offers employers the option of requesting 2020 wage tax refunds on behalf of their nonresident employees

Many employees were ordered to work from home in 2020 because of the COVID-19 emergency or are dealing with a loss of income. Accordingly, the Philadelphia Department of Revenue anticipates an increased volume in requests for 2020 wage tax refunds.

To make the refund process easier for Philadelphia taxpayers, the Department announced it is making available an employer-requested refund option. Under this option, and for tax year 2020 only, Philadelphia employers can submit a wage tax refund request on behalf of a group of their nonresident employees. The Department will mail refund checks directly to employees at the address provided by the employer.

Starting in February 2021, employers will be able to upload the form on the Department's eFile/ePay website.

Note that Philadelphia City residents are not eligible for a refund of the wage tax withheld in 2020.

If the employer is submitting the wage tax refund request on behalf of its nonresident employees, those employees are instructed to not submit a petition themselves. However, if they need to submit the wage tax refund request on their own, they should use an online wage tax refund petition that will be available on the Department's website later in February 2021.

For more information concerning guidance for withholding the Philadelphia wage tax from the wages of nonresident employees working in the city temporarily due to COVID-19, see EY Tax Alert 2020-2875.

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Debera Salam (debera.salam@ey.com)
   • Kristie Lowery (kristie.lowery@ey.com)
   • Kenneth Hausser (kenneth.hausser@ey.com)

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