2021 Philadelphia Notice Requirements
The City of Philadelphia requires businesses to give notifications to their employees about the City of Philadelphia Income-based Wage Tax Refund program and the Federal Earned Income Credit programs discussed below. This notification can be an electronic or printed copy, and needs to happen no later than February 1, 2021.
The City of Philadelphia Income-based Wage Tax Refund Program
The City also reduces the rate on Wage and Net Profit Taxes to 1.5% for taxpayers who are eligible and complete Pennsylvania Special Tax Forgiveness (“Schedule SP”) of the Pennsylvania Personal Income Tax Return. Eligible Philadelphia Wage taxpayers may request a refund from the Philadelphia Department of Revenue by submitting an Income-based Wage Tax Petition.
What must business do to promote the Income-based Wage Tax refund?
Employers may not reduce their employees’ Wage Tax withholding. Philadelphia asks employers to send employees who receive a W-2, and earned less than $100,000, an Income-based Wage Tax Petition. Eligible employees that file a petition can receive a refund of Wage Tax paid in excess of 1.5% for the previous year.
Income-based Wage Tax Petitions for 2020 will soon be available at the Philadelphia Department of Revenue website. Employers can download and print the document, or share this webpage with their employees: www.phila.gov/revenue/wage-tax-petition.
The Federal Earned Income Tax Credit (EITC)
The City of Philadelphia wants every Philadelphian who is eligible to receive the federal Earned Income Tax Credit (EITC). This federal credit is for low-to moderate-income individuals and families. They can get the EITC by filing a federal tax return. With an average benefit of $2,500 per tax return, EITC provides hard-working Americans with a needed financial boost every year. Despite this, Philadelphia understands that thousands of Philadelphia residents are not claiming EITC, resulting in millions of dollars being left out of our local economy. After a particularly difficult year for workers and businesses, Philadelphia wants employers to provide this notice.
How should your business promote EITC?
The City of Philadelphia provides a notice that explains how employees can claim EITC –online and FREE– by visiting www.myfreetaxes.com. The City requires employers to give workers this notice at the same time they provide them with W-2, 1099, or comparable forms. You can do this electronically, or give them a printed copy. The notice is available for download at www.phila.gov/revenue/eitc.
Hiring Steven was quite possibly the best decision of my life! Steven took the time to hear every single one of my concerns and address them in an extremely clear, concise and thorough manner. He guided me through the notoriously complicated and stressful process of probate with the utmost of compassion and dedication. Thank you Steven!
I highly recommend Steven J. Fromm for all your estate and tax planning needs. He has the most complete and thorough knowledge of current as well as pending federal, state, and local tax codes of any professional that I have ever been involved with. His ability to totally sort out your current financial condition and relate it to a plan to minimize your tax liability and allow you to sleep at night is without equal. He is professional, timely, creative, and an advocate for your needs, whether its personal or business. You can be assured that you will be well taken care of, with cutting edge/ sound financial and tax advice by Steven J. Fromm.
I have always found Steve to be very responsive, accurate and creative in legal matters presented to him. He demonstrates a good business sense. We have collaborated on several highly technical issues over the years. I look forward to our continuing relationship.
Steven has been instrumental in helping my partner and I to create a secure and satisfying estate plan, which meets or exceeds all of our wishes and contains contingencies for everything from medical issues to wealth management and living wills. In this process, Steven has also become a friend. If you need Estate Planning, Tax Advice, a Will or a trust, etc., we highly recommend Steven Fromm, Esquire. He will listen and be sensitive to your unique situation.
Steve is an excellent attorney who has provided help for my family personally for business, tax, and other services for many years. He is extremely knowledgeable and thorough, and is extremely good at explaining legal concepts to me in clear terms understandable to a non-attorney. It is difficult to pick only three attributes above, since Steve’s work meets most if not all of the attributes above.
Steve is an excellent corporate attorney who has a deep understanding of corporate law, taxes and estate planning. He’s been extremely helpful to me in keeping my many companies and business ventures organized, focused and squeaky clean. He’s very strong in estate planning and wealth preservation as well. Finally, his follow through is air tight and utterly dependable.
Steven is a trusted adviser. We depend on him for so many things. He is patient, listens to our needs and makes excellent suggestions. He is extremely talented. We value his advice and have recommended him unhesitatingly to friends and family.
Steve Fromm is a superb lawyer and I highly recommend him! After a terrible experience with a previous lawyer concerning an estate administration, I entered his office feeling very deflated, confused and discouraged. However, I left his office feeling enthusiastic and eager to get down to business. My situation was very unique, I needed his expertise for an array of things and Steve was able to address all of my needs. With a limited timeframe and an extreme amount of obstacles to overcome he worked meticulously, diligently and accomplished extraordinary results. His professionalism is incomparable and I am forever grateful.