Employers will be able to request 2021 Wage Tax refunds on behalf of their employees, as they were able to for 2020 Wage Tax. The special form created for this purpose for 2021 is now available on our website. Updated: 03/08/2022.
There are three different types of refunds for Wage Taxes:
- Wage Tax refund for employees who are salaried
- Wage Tax refund for employees who are commissioned
- Wage Tax refund for taxpayers who meet certain income requirements
Refunds for salaried or commissioned employees
Only non-resident employees are eligible for a Wage Tax refund for work performed outside of Philadelphia. Resident employees are taxable whether working in or out of Philadelphia. However, resident employees may apply for a refund for deductible, non-reimbursed business expenses.
Effective January 1, 2014, all employee Wage Tax refund petitions require documentation to verify any time worked outside of Philadelphia. Employees who request a refund for travel should use our refunds date and location worksheet, and must provide a copy of their Telework Agreement.
Non-resident employees who submit a refund request online must attach a letter from their employer. The letter – signed and on company letterhead – must include the dates the employee was required to work outside Philadelphia.
Use the forms linked on this page to apply for the Wage Tax for salaried or commissioned employees.
If you requested a refund on your return, you do not need to fill out these forms.
Income-based Wage Tax refunds
If you file for Pennsylvania tax forgiveness through PA Schedule SP and are approved, you may also be entitled to receive a refund of employer-withheld City Wage Tax.
Eligible applicants pay Wage Tax at a lower rate. Full instructions, along with a schedule of eligible income amounts and rate reductions, are included in the refund petition form. Applicants must use an additional petition if they have more than four W-2’s.
We encourage all applicants to use the online Wage Tax refund petition. We process petitions submitted online faster, and with fewer errors. Applicants may use a paper income-based Wage Tax refund petition if they prefer.
Philadelphia employers are required to give an income-based Wage Tax refund petition form to employees by February 1. In most cases, employers provide the refund petition at the same time they provide employee W-2’s or comparable forms. Anyone can also download a copy of the form.