2018 ANNUAL RECONCILIATION OF EMPLOYER WAGE TAX

Who Must File:         All employers who paid taxable compensation to residents of Philadelphia, even if earned
                       outside of Philadelphia, and to non-residents for services performed within Philadelphia.

When To File:          The Annual Reconciliation of Employer Wage Tax for the calendar year 2018 is due on or
                       before February 28, 2019.  Failure to file and pay by this date will result in the
                       imposition of interest, penalty, fines and legal costs.

Where To File:         Sign the Annual Reconciliation return and mail to:  Philadelphia Department of Revenue,
                       P.O. Box 1670, Philadelphia, PA 19105-1670.

Print your numbers legibly to ensure efficient processing.  Photocopies of this return are not acceptable. Regulations, returns and instructions are
available at   www.phila.gov/revenue.  Contact the Department by calling 215-686-6600 or send e-mail to   revenue@phila.gov.
To file this return online, go to https://ework.phila.gov/revenue/.    After submitting the return you must print the resulting confirmation page for your
records.  W-2 data must be submitted in accordance with the requirements specified on Page 2 of these instructions.
If the entity no longer has wage tax withholding responsibilities, use the   Change Form to indicate the termination of wage tax liability and enter the
termination date on the return in the space provided. The Change Form is available online at https://alpha.phila.gov/documents/tax-account-change-form/.  
If the wage tax withholding responsibilities terminated prior to 2018, mail in the Change Form but   do not complete and file a 2018 Wage Tax Reconciliation
return.
Line 3:  Put on this line the amount of tip income reported to the employer by the tipped employees (e.g. IRS Form 4070) and any other tips allocated to
the employees (by the employer) in accordance with applicable U.S. Treasury Regulations.  An employer’s liability for withholding the Wage Tax on
employees’ tip income is based on the wages under the employer’s control (other than tips) and amounts turned over voluntarily to the employer by the
employee to meet the withholding.  Therefore if the employer is unable (due to insufficient funds) to withhold the Wage Tax on any compensation (i.e. both
salary and tips), report those amounts here.    
Line 13:  Tax Due - If the tax due on Line 13 of the Annual Reconciliation of Wage Tax return is $1 or more, make a check payable to "City of
Philadelphia".  Do not remit tax due if less than $1.  Internet filers can pay the tax due via credit card or by e-check.  A user fee is added when paying by
credit card.   E-CHECK IS FREE.
ACH  Debits  and  Credits  are  accepted  for  payment  of  tax.    For  more  information  or  to  enroll  in  this  program  go  to
https://alpha.phila.gov/services/payments-assistance-taxes/paying-city-taxes/. Contact the Electronic Government Unit at 215-686-6582, 6579 or 6628 or
e-mail to   egovservices@phila.gov.
Returned Checks. If your check is returned unpaid for insufficient or uncollected funds, (1) you authorize The City of Philadelphia or its agent to make a
one-time electronic funds transfer from your account to collect a fee of $20; and (2) The City of Philadelphia or its agent may re-present your check
electronically to your depository institution for payment.
Line 16: Tax Overpaid - To obtain a refund of an overpayment of Philadelphia City Wage Tax, you must file a Refund Petition with the Department of
Revenue.  A refund can be the result of an over withholding of tax from the employees' pay by the employer or an overpayment of tax that was not withheld
(a duplicate payment).  If the overpayment is the result of over withholding, a letter signed by a company officer must accompany the Refund Petition
stating that the tax that was over withheld has been refunded to the employee(s) by the company.  If the refund is the result of a duplicate payment,
supporting documentation showing the duplicate payment must accompany your refund petition.
To download a Refund Petition, go to https://alpha.phila.gov/documents/refund-petition-form/.
If you have questions about your filing requirements, application of payments or tax balances due, call Taxpayer Services at 215-686-6600.

                                                          Interest, Penalties and Costs

       Effective January 1, 2014 - All taxes (except Real Estate) bear simple interest.  The annual rate shall be the
       Federal Short-Term Rate effective January 1 of such calendar year (26 § USCA 6621 et. seq.) plus five (5)
       percentage points.

       Penalty will be at the rate of 1¼% of the unpaid tax for each month or fraction thereof.

       See the Department of Revenue web site for current interest rate.

                                                                       Page 1                                      Wage Instructions  7-27-2018

                         W-2 Submission Requirements for 2018

Transmittal Form: The Annual Wage Tax Reconciliation return is the only form that is transmitted with the W2’s.
No other transmittal form is required.

Submitting W2s: Employers with more than 250 W2’s cannot remit on paper. Employers with less than 250
employees are strongly encouraged to remit electronic files and not use paper resources.

If you must submit W2’s electronically they must be submitted via our secure FTP site. The link to the secure FTP is:
https://ework.phila.gov/revenue/. The City will no longer accept CDs and other electronic media through the mail.

After you successfully upload the W2 file, you will see instructions to send contact information to a City email
address. The email address is:   w2.1099@phila.gov.

Online filing of the 2018 Annual Wage Tax Reconciliation return: If you file the 2018 Annual Wage Tax
Reconciliation return online, you must still prepare an electronic W2 file and submit it via the City’s secure FTP site.

Record Format for W2 electronic file: Only the EFW2 (formerly MMREF-1) format is acceptable. This is the same 
format transmitted to the Social Security Administration, as stated in SSA Publication - Magnetic Media Reporting 
and Electronic Filing for 2018. PDF files are not acceptable.

The   RA, RE, RW and   RS records must be included. It is extremely important to follow exactly all Social Security
Administration rules for displaying data. The following information must be included:

   RE record:
 Positions 222-248 – Employer Contact Name
 Positions 249-263 – Employer Contact Phone Number
 Positions 264-268 – Employer Contact Phone Extension
 Positions 269-278 – Employer Contact Fax Number (If applicable enter the employers fax number
                           including area code. Otherwise fill with blanks)
 Positions 279-318 – Employer Contact E-Mail/Internet

   RS record: If the employer is withholding Philadelphia Wage Tax on the employee, then the following
 positions are required (only include   Philadelphia data - do not include data for other jurisdictions):
* “Tax Type Code” – This code   must equal   “C” (position 308).
* “Local Taxable Wages” – Positions 309 to 319   must equal Philadelphia Taxable Wages.
* “Local Income Tax Withheld” – Positions 320 to 330   must equal Philadelphia Wage Tax Withheld.
* “State Control Number” – Positions 331 to 337   must include the   7-digit City Tax Account number.

File name specifications: When you upload the electronic W2 file to the City’s website, please make sure that the
file name includes the name of your company, the 7-digit City Tax Account number, and the tax year.

Test Data:   Philadelphia does not accept test data. If errors are found in your data file or if you have not used the
required EFW2 format, you will be contacted.

For inquiries concerning filing of W2’s, send an e-mail to revenue@phila.gov.

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