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1.  PA/ NJ Reciprocity Agreement no more as of 11/2017

Posted 11-15-2016 11:49

I was wondering if anyone could tell me how they are going to handle this change for their employees that will be charging hours to jobs in both states and they might or might not be actually working at the site in those states?  For example I have Estimators, Coordinators, Acct that will be charging jobs but will not step a foot on the job-site and will be working for the office in PA.  What SWH do I withhold in this case?  The office or the job site location? If your answer is the office because they were not actually on the site how are you planning to prove that to a State Auditor? 

Also I have PM, APM, SR PM that will be charging hours to jobs and they may or may not be on the site in the same week.  Do I hold the SWH on all hours charged based on the location of the job even if they are not on the site?  I have no way of knowing when they charge the hours to the jobs if they are actually on the site or in our office.  

Please let me know how you are planning to address these issues.

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Vikki Grinnan
Exton PA
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2.  RE: PA/ NJ Reciprocity Agreement no more as of 11/2017

Posted 11-16-2016 09:46

Hey Vicky:

Our PR system allows us to code the Super state wh by the job location and any non-job Super payroll - v,s,h - to the resident state.  Estimators and Accountants are resident in the state the office is in; they don't travel in our companies.

PM's are the issue for us. If a PM is resident in PA, and the office is in PA,  and job is in NJ, we will have the PMs note two lines on his/her timecard - one line on site and one line offsite - for the same job.  We will tax accordingly.  In practice, we hard code the PM to the office state, and process the on site time as NJ as indicated on the timecard.

If we have an on site Admin, estimator visit, project accountant, we'd handle similar to PM.

We have a city, Philly, which requires the same effort for local.

Sorry to see NJ stuck with this PIA change.  Best of luck to both of us!

Thanks,

Joe.

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Joseph Mullen CPA
Controller
1301 Services, Inc
Ambler PA
(215) 542-1450