Service 04
Payroll that gets the Wage Tax right.
Paychecks, withholding, quarterly filings and W-2s for teams of 1 to 50, with each employee taxed at the rate that fits where they live.
- Resident and non-resident rates applied per employee
- City, state and federal filings included
In plain words
Why is Philadelphia payroll different?
Every employer in the city withholds Wage Tax, and the rate depends on where each employee lives. As of July 1, 2026 it is 3.735% for Philadelphia residents and 3.425% for non-residents. When someone moves across the city line and nobody updates payroll, the wrong rate comes out of every check until it is caught.
We confirm each employee's home address when they are hired and each January, apply the rate change every July, and file the quarterly Wage Tax returns with the city. Employees who qualify for Pennsylvania tax forgiveness can apply for the city's reduced 1.5% rate, and we help them with the form.
What is included
- Pay runs weekly, every two weeks or twice a month
- Direct deposit and pay stubs employees can open on a phone
- Philadelphia Wage Tax withheld at the right rate and filed quarterly
- Federal Form 941 and Pennsylvania withholding and unemployment filings
- W-2s for employees and 1099s for contractors
- New hire reporting and a yearly address check
How it works
Four steps, no surprises.
Set up
We gather employee details, open or link your city and state accounts and run a test pay cycle.
Each pay run
You approve hours by noon two days before payday. We do the rest.
Each quarter
City, state and federal returns filed, with a copy in your folder.
Each January
W-2s and 1099s delivered by February 1, and rates and addresses checked for the new year.
Fixed prices
What does it cost?
You get a quote in writing before we start, and the invoice matches it.
| Service | What it covers | Price |
|---|---|---|
| Base fee | Any number of pay runs | $95 a month |
| Per employee | Each active employee, each month | $8 |
| Setup | One time, includes city and state accounts | $250 |
| Year end forms | W-2s and 1099s | Included |
| Amended quarterly returns | Per return, for periods before we started | $150 |
Sample prices written for this demo.
Also at Tallybrook
Three more services.
Most clients use two of them.
- No. 01
Individual tax returns
Federal, Pennsylvania and Philadelphia returns for employees, freelancers and landlords.
from$375per return - No. 02
Small business tax
BIRT, Net Profits Tax and federal returns for sole proprietors, LLCs, partnerships and S corporations.
from$1,150per year - No. 03
Monthly bookkeeping
Books closed by the 10th of each month, with a one page report you can read in five minutes.
from$350per month
Sample prices written for this demo.
Questions people ask
Payroll, answered.
What clients ask before they start.
What is the Philadelphia Wage Tax rate?
As of July 1, 2026, the rate is 3.735% for Philadelphia residents and 3.425% for non-residents who work in the city. The rates usually change each July.
My employee lives in New Jersey and works in my Philadelphia shop. Which rate applies?
The non-resident rate. Anyone who works in Philadelphia and lives outside it pays the non-resident Wage Tax on wages earned in the city.
One of my employees works from home in the suburbs. Do I withhold Wage Tax?
If you require that employee to work outside the city, you do not withhold for those days. If the employee chooses to work from home, you do. We document the arrangement so the answer holds up if the city asks.
How often are Wage Tax filings due?
Returns are filed quarterly, due at the end of the month after each quarter. How often you send the withheld money depends on the amount: quarterly for the smallest employers, monthly or more often for larger ones.
Can you take over in the middle of the year?
Yes. We load the year to date figures from your current provider, so W-2s at year end cover all twelve months.
Start here
Tell us what you need.
A few details and a real accountant calls you back within one business day. The first call is free and takes about twenty minutes.
(215) 555-0137Old City, Philadelphia. Monday to Friday, 9 AM to 5:30 PM. Saturday mornings from February through April 15.