5Configure Philadelphia City Tax Withholding

The payroll process automatically withholds Philadelphia local tax for employees living or working in Philadelphia.

• For employees living in Philadelphia, it withholds the resident rate.

• For employees working in Philadelphia but not living there, it withholds the nonresident rate if it's higher than their resident tax rate.

• For Philadelphia employees who receive tips, there are two additional balances.

  • City Uncollected Tax Tip Wages Nonresident

  • City Uncollected Tax Tip Wages Resident

  These balances report wages from which no city tax was withheld. You must perform balance adjustments on these balances to populate the data for the tax extracts.

No school district info is required.