July 1, 2019 Updates to Philadelphia Wage Tax and New Jersey Minimum Wage

July 1, 2019, brings changes to the paychecks of employees in the city of Philadelphia and the state of New Jersey.

Philadelphia Wage Tax

In Philadelphia, city residents and employees who live outside city limits but whose companies are located in Philadelphia will see a reduction in the Philadelphia City Wage Tax.

The Philadelphia Wage Tax affects all businesses that operate within the city as well as businesses outside of the city who hire Philadelphia residents.

Any paycheck issued with a pay date after June 30, 2019, must withhold the Philadelphia City Wage Tax at these new rates:

  • The new Wage Tax rate for residents of Philadelphia is 3.8712% (.038712).
  • The new Wage Tax rate for non-residents of Philadelphia who are subject to the Philadelphia City Wage Tax is 3.4481% (.034481).

If you are a Philadelphia-based business who does not collect the Wage Tax on behalf of your employees, or if you work for a business in Philadelphia and do not have the Wage Tax collected on your behalf, you – the employee – are responsible for paying an Earnings Tax directly to the City of Philadelphia. These rates will also lower as of July 1, 2019:

  • 3.8712% (.038712) for Philadelphia residents
  • 3.4481% (.034481) for non-residents

New Jersey Minimum Wage

On July 1, 2019, New Jersey will start a path to increase the state minimum hourly wage from $8.85 to $15.00 by the year 2024. This will be accomplished according to a timeline of steady, incremental increases. The amount of these increases differs according to the business category, to allow for implementation without a negative impact on the business. What this means is while most employers will be required to pay a new minimum hourly wage of $10.00 with annual increases of $1.00 for the following five years to reach $15.00 per hour, businesses deemed as “Seasonal & Small Employers” with fewer than six employees and “Agricultural Employers” will increase the minimum hourly wages they pay on a different scale. A full explanation is provided via this chart.

Workers who receive tips on top of their wages will see their hourly rates rise from the current $2.13 per hour to $5.13 per hour by January 2, 2022. Their cash wage tips must equal the minimum wage.

We are happy to answer any questions you might have regarding these updates or any other issue related to your payroll. Call 215-723-4881 or contact us online.

Elm Terrace Gardens Technical Support Request

Computer Recycling Program

In an effort to support our environment, provide our customers with a cost-effective, easy way to dispose of their unused computer equipment and comply with local equipment disposal laws, we are announcing a new computer equipment recycling program. Here’s how it works:

At your request, we will recycle your used computer equipment for you. Computers will have their hard drives rendered inoperable (so that there is no possibility of anyone extracting data from them). We will then transport your equipment to a certified computer equipment recycling center for proper disposal.

To encourage as much participation in this program as possible, we are keeping the fee for this service to a minimum. To have your computers recycled, simply:

  1. Complete the form below, indicating the quantity of each item to be recycled
  2. Drop your equipment off at our office (along with this form), or give your equipment to one of our staff persons when they are at your office for another engagement
  3. We will send you an invoice for the service fee

Computer Equipment Recycling Program (PDF)

Canon Capital Technical Support Request

Note: Please use this form for NEW support requests only. Do not use for general correspondence or for checking the status of an existing request as this will create duplicate entries in our ticketing software.

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Team Canon Capital Represents at the Indian Creek Foundation 2019 Roll, Stroll, and Run

The weather was gorgeous on Saturday, June 15, for the 2019 Indian Creek Foundation Roll, Stroll, and Run.

Team Canon Capital was represented by Sarah Hughes, one of our CPAs; Payroll processer/tax preparer Linda Covel; Linda’s sister-in-law Mary Jane Yoder; and Linda’s daughter-in-law Courtney Covel.

Sarah placed first in the Women’s Division and second overall in the 5K portion of the event, with a time of 20:56!

We were proud to be among the sponsors for this annual event, a fundraiser that benefits Indian Creek Foundation’s mission of supporting people with intellectual and developmental disabilities by providing them with opportunities to enrich their lives and the lives of those in their communities.

(Pictured L-R: Sarah Hughes, Linda Covel, Mary Jane Yoder, Courtney Covel)

2019 IRS Standard Mileage Rates on the Rise

As you keep records for the 2019 tax year, we want to make sure you are aware of this year’s IRS standard mileage rates. As of January 1, 2019, the standard mileage rates for the use of a vehicle (car, van, pick-up truck, or panel truck) for business, charitable, medical, or moving purposes are:

  • 58 cents for every mile of business travel driven (an increase of 3.5 cents from the 2018 rate)
  • 20 cents per mile driven for medical or moving purposes (an increase of 2 cents from the 2018 rate)
  • 14 cents per mile driven in service of charitable organizations (no change from the 2018 rate)

If you rely on mileage deductions for tax filing, save time and stress by considering the many apps and online mileage trackers we discuss in this blog.

If you have questions about this topic or any of our other business service offerings, please don’t hesitate to call 215-723-4881 or contact us online.

Client Technical Support Request

Note: Please use this form for NEW support requests only. Do not use for general correspondence or for checking the status of an existing request as this will create duplicate entries in our ticketing software.

Alderfer, Rebecca

Administrative Assistant

Becky joined Canon Capital in 2002.  Prior to Canon Capital, she worked for an auto dealership and computer software company.  She attended Montgomery County Community College for business.  Becky is active in church and teaches Sunday school.  She resides in Tylersport with her husband and has three children and eight grandchildren.  Becky also enjoys making crafts and baking.

Technologies

Canon Capital Technologies has put together a staff of talented, knowledgeable, and experienced technology consultants who pride themselves in providing the very best, yet sensible, solutions available for each business we work with.

Whenever your business needs help with applying technology to improve communications, boost productivity, or increase revenue, just call on our experienced staff of technology consultants.

In today’s fast paced, ever-changing, Internet-connected world, you can turn to us to help your business keep up with it all. You can rely on us to be there for you!