PICPA leadership has been working with representatives from the Philadelphia Department of Revenue to address nonresident Wage Tax policy and refund issues for the upcoming tax season.

I am pleased to report that our efforts have paid off. In short, the DOR has established a number of new processes that will make it easier for thousands of employers and employees to secure refunds for the period of time they are required to work remotely.

First, employers can now apply for the refund on their employees’ behalf in bulk, but only for employees who were sent home because of pandemic-related business closures (in this case, nonresident employees should not submit their own petitions).

However, if employers do not submit a request on their employees behalf, the DOR has created a streamlined petition for those nonresidents: they can either submit a paper form or wait for an online form that will launch the first week of February. The DOR strongly recommends they choose the latter option.

Nonresidents who have a more complicated petition — generally one that includes stock options or business expenses — will still need to file the paper form on their own.

I encourage you to review this more detailed guidance, review the 2020 forms, and contact refund.unit@phila.gov or (215) 686-6574 with questions.

Thank you for your continued perseverance during these times.

Sincerely,

Colgan, Mike

Michael D. Colgan, CAE
CEO & Executive Director
Pennsylvania Institute of CPAs

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