IMPORTANT: Change to Work Addresses in Workday Due to Remote Working

In summary:

  • Effective June 1, 2020, Non-Philadelphia residents will no longer have Philadelphia City Wage tax withheld from their pay, but instead will have any local taxes withheld for the tax jurisdiction in which they reside.
  • At the end of the calendar year, Non-Philadelphia residents can make a claim directly with the City, for Philadelphia City Wage Tax withheld from their pay while they worked outside the City, for the period March 13 through May 31, 2020.
  • To ensure you are properly taxed, workers should access Workday on June 1st, to review and update their tax information.

FULL MESSAGE:

The following is being sent on behalf of Jack Heuer, Vice-President of Human Relations and MaryFrances McCourt, Vice President of Finance and Treasurer.

The University continues remote working to address the health and well-being of its employees during the Coronavirus 19 pandemic.  As remote work progresses toward 90 days and more, we are now moving forward with making a change in Workday to update work addresses to home to ensure compliance with state and local tax withholding requirements. The good news is that the University has identified a method to make a systemic change to update work address. This systemic change will take the burden off the schools and centers to manually make these changes, as we previously thought.

For employees residing outside of Philadelphia who are working remotely, their work address in Workday will be updated to be the same as their primary home address effective June 1, 2020.  Work addresses will not be changed for identified groups of individuals in functional areas that cannot perform their job functions remotely, as follows:

  • FRES, Business Services, and Public Safety union staff;
  • Penn Child Care Center employees;
  • Certain ULAR and EHRS employees (identified by the Provost’s Office); and
  • Certain Ryan Hospital employees (identified by the Vet School)
  • Individuals identified as essential employees to HR

No change in work location will be made for students; temporary employees; individuals on STD, LTD or scholarly academic leave; or for individuals with a primary home address outside of the U.S.

Note that this change will affect pay dates after June 1, 2020.  The change will not be retroactive to March 13, 2020.

Impact to employees

  • Employees residing in Pennsylvania
    • Non-Philadelphia residents – will no longer have Philadelphia City Wage tax withheld from their pay but instead will have any local taxes withheld for the tax jurisdiction in which they reside.
    • Philadelphia residents – will not have their work location changed as there would be no change to their tax withholding.
  • Employees residing outside of Pennsylvania
    • Employees who live in reciprocal states (New Jersey, Ohio, Maryland, Virginia, West Virginia and Indiana)
      • Who have elected to be taxed in their state of residence instead of the state in which they work (PA) – will no longer have Philadelphia City Wage Tax withheld from their pay and will instead have any local taxes withheld for the tax jurisdiction in which they reside.  Additionally, any credit received against state tax withholding for Philadelphia City Wage Tax withheld will be adjusted for the change in local tax withholding.
      • Who have NOT elected to be taxed in their state of residence, but are instead taxed in the state in which they work (PA) – will no longer have Philadelphia City Wage Tax or Pennsylvania state tax withheld, but will instead have state and local tax withheld based on the state and locality of where they reside.
    • Employees who live in non-reciprocal states – will no longer have Philadelphia City Wage Tax or Pennsylvania state tax withheld and will instead have state and local tax withheld based on the state and locality of where they reside.
  • Workday Tasks to be Completed by Employee – For individuals residing outside of Pennsylvania
    • To ensure they are properly taxed, workers should access Workday on June 1 to review and update their tax information.  Individuals whose work address has been changed will receive a notice in Workday of a To-Do task “Address Change: Possible Updates Needed to Tax Elections.”  Workers should click on the “BSI Tax Withholding Form Employee” link and review and complete the appropriate state or local tax forms displayed.  Individuals should also click on the “Pick Other Forms” button to determine if additional forms are available to be completed.  For additional information, refer to the Self Service: Access Tax Withholding Forms tip sheet
  • City Wage Tax Refunds
    • Non-residents of Philadelphia may make a claim directly with the City at the end of the year for Philadelphia City Wage Tax withheld from their pay while they worked outside the City for the period March 13 through May 31, the remote work period prior to the effective date of the work location change.  The completed petition form must include the following:
      • W-2 showing Federal, State, Medicare and Local wages
      • Statement of dates worked outside the City of Philadelphia signed by both the employee and the employer
      • Signatures from both the employee and the employer
  • Any refund claim must be filed within three (3) years from the date the tax was paid or due, whichever date is later. 
  • For any days worked outside Philadelphia, the employee may be liable for taxes in other jurisdictions within Pennsylvania or in another state. It is the employee’s responsibility to determine whether they have any such liability, to file the appropriate tax forms, and to make any payments due to such other jurisdictions.

If you have any questions, please contact the Employee Solution Center at hcmsolutioncenter@upenn.edu.

The Penn Employee Solution Center is now available to help with your HR/payroll questions. Knowledgeable Solution Center Specialists are available Monday through Friday, during business hours, to answer your questions. The number to call is 215-898-7372 or you may send an email to hcmsolutioncenter@upenn.edu.

This entry was posted in Uncategorized. Bookmark the permalink.