The Philadelphia Department of Revenue (PDOR) had announced that effective January 1, 2015, ALL employers are required to provide notice of the federal Earned Income Tax Credit (EITC) program to all Philadelphia resident employees and non-payroll workers (independent contractors) at the “same time” that they receive their 2014 W-2, Form 1099, or other comparable form. It is important to note that this new law applies to not only companies located or doing business in Philadelphia, but also to those businesses not located in Philadelphia that employ or pay residents of the City of Philadelphia.
The PDOR has posted on its website (www.phila.gov/revenue/EITC) the City of Philadelphia’s “2014 Earned Income Tax Credit (“EITC”) form.
The PDOR will allow employers to provide this notification electronically or in hardcopy.
What happens if such notice was not provided to the employee or independent contractor when sent the W-2 or Form 1099-MISC? The PDOR has ruled that the employer must provide the required form to the employee or independent contractor no later than February 7, 2015.
What happens if such notice was not provided to the employee or independent contractor by February 7? The PDOR has stated that this would be evidence of non-compliance of the “same time” requirement, subject to a penalty pursuant to § 19-509 of the Philadelphia Code.
To learn more about this Philadelphia requirement, we invite you to call 610-594-2601 today to make an appointment at our Exton PA CPA office to discuss your situation with an experienced tax professional. You can also schedule a consultation at Click Here.
