Township Of Whitemarsh: Tax Savings Opportunity For Residents

Press release from the Township of Whitemarsh:

January 08, 2021

Whitemarsh Township residents who worked in the city of Philadelphia during 2020 and have been required by their employer(s) to work from home have an opportunity to realize significant tax savings in 2021.

The Philadelphia wage tax is currently 3.502% while Whitemarsh’s earned income tax for both the Colonial School District and Township totals 1.25%, potentially a direct savings of some 2.252% on your total taxable income. 

In order to realize this savings, it is important that you contact your payroll or human resource department and request that they establish an account with the Township’s third-party payroll collection agent, Berkheimer Tax Innovations at 610-599-3139 or their website https://www.hab-inc.com/.  

Upon doing so, your employer will then begin to withhold your taxes based on your home as your work location. As noted above, the current wage tax rate is 1%, you will also be subject to the township’s Local Services Tax of $1.00 per week or $52.00 per year.  

If you are self-employed, you should already have a direct account with Berkheimer for the required quarterly payments of both taxes. 

It is important to note that Township residents receive a direct offset for any wage and/or net profits taxes paid to Philadelphia. If you have paid Philadelphia during 2020, it would be applied directly against any liability for taxes properly due to Whitemarsh Township and Colonial School District tax savings in 2021.

This press release was produced by the Township of Whitemarsh. The views expressed here are the author’s own.