PHL Non-resident Tax
 

I was told by a union rep that the approximate 3.5 percent Philadelphia non-resident income tax would not apply to pilots commuting to PHL. 3.5 percent was taken out of my most recent pay (it was not applied in the previous months I have been based there).

This will amount to nearly $1000 per month! Payroll has been inconsistent and vague in responding to my questions on the application of this tax. I will change bases to avoid paying this if it is my only choice.

Why don't you talk to a tax professional out there? I mean you're making $28,500 a month...or is 116 credit at the topped out rate keeping you too busy?

Also, from what I've heard, its a city tax. If you work in the city you pay the tax, kind of like Denver's BS tax

Talk to tax pro.
I was based there for four years. Never paid the tax.

Any PHL based pilots at other airlines paying this?

I didn't pay it at republic, and I haven't paid it yet at frontier. I live on the Jersey side.

I have spoken to several tax pros and all seem to be at a loss. The sarcasm of the post about my working too much to look into this matter is not appreciated. My point of the post is to learn more of what others are seeing and their circumstances—e.g., are other pilots at Frontier that commute to PHL subject to this tax? At this point, it doesn’t matter if a tax pro believes I shouldn’t be paying the tax since Frontier is taking it out of my pay anyway.

I guess my point is I’m hoping to learn of something from other pilots that can be beneficial in possibly getting relief from the tax—or at least have the rate reduced to be more reflective of spending about an hour a week of actually working at the airport.

Sounds like a mistake by payroll. Email Brenda k. She will either stop taking it out if your paycheck or provide a written explanation as to why your paying it. She’s not vague or inconsistent. At all.

Was over payroll’s head... they forwarded me to a payroll specialist. Here was the response I received:

“The city tax that you are required to pay is the non-resident city tax because you only work in Philadelphia. Unfortunately there is not a refund you can request through the company, but maybe when you file your taxes at the end of the year you can talk to a CPA to see if you would be eligible for a refund. The city tax is required to be paid by the employee.”

I did some independent research on this. It seems to fall under the “double taxation” clause in the tax code. I believe if your already paying city tax in your home state then you maybe able to request a refund. For those that live in a tax free state, I think you maybe out of luck.

I spoke with an AA Captain yesterday. He was unaware of any additional tax coming out of his check. He lived in RDU.

Someone mentioned it here I thought. That AA has a maintenance building outside of city (off-airport) that they use for their business address for their PHL based employees, to circumvent the city tax.

This was a long drawn out battle at Republic with their Philly base. The pilots eventually got the company to stop withholding the tax though. At one point I believe Republic was withholding 2 separate local taxes (one for Philadelphia and one for Tinicum Township).

Anyway, the website that addresses who has to pay is here...

https://dced.pa.gov/local-government/local-income-tax-information/local-services-tax/

The form that must be submitted to Frontier payroll (once annually) is here...

https://dced.pa.gov/download/lstexemptioncertificate-4-pdf/?wpdmdl=57778

Payroll at Republic instructed PHL based pilots as follows...

“For those that based in PHL:

Check #2

Your municipality is Tinicum, the PSD code is 230504 and the $ amount to enter is less than $12,000.

Please return to [email protected]

For both on the 2nd page fill out the primary employee information requested.

Sign, date and return to us.”

I’m not sure if those codes are the same at Frontier but I would guess yes. Once this form is turned into payroll at Frontier, they are legally required to stop withholding.

Hope this helps.