City of Philadelphia announces Wage Tax rate decrease for both residents and nonresidents starting July 1, 2021

  • The new Wage Tax rate for residents of Philadelphia is 3.8398% (.038398).
  • The new Wage Tax rate for nonresidents who are subject to the Philadelphia City Wage Tax is 3.4481% (.034481).

 

What this means for you

Any paycheck that you issue with a pay date after June 30, 2021, must have Philadelphia City Wage Tax withheld at the new rates for residents and nonresidents.

What you need to know about the Advance Child Tax Credit payments in 2021

Important changes to the Child Tax Credit will help many families get advance payments of the credit starting this summer. The IRS will pay half the total credit amount in advance monthly payments beginning July 15. You will claim the other half when you file your 2021 income tax return. These changes apply to tax year 2021 only.

It is important to note that the monthly payments are an advance of your 2021 tax credit, according to the IRS. The monthly payments you receive will be deducted from the amount you would normally claim at the end of the year.

For this reason, we suggest consulting with your tax preparer. You may have to change your federal withholding to prevent owing federal taxes for 2021. Doing this now can avoid any surprises when filing your 2021 personal tax return.

PTO Tracking

U.S. businesses throw away enough scrap paper annually to fill nearly 20 Sears Towers from top to bottom.

Payroll Service Solutions will track your employees’ paid time off, whether it be sick days, personal days, or vacation time. We can track how much time each employee earns and uses, and show the remaining balances clearly printed on the employee’s pay stub. Let us take this potential headache away from you so you can focus on your business. Call PSS today at 215-624-0922 to set this up!

Get Rewarded with the PSS Referral Bonus Program

We are offering a $50 Amazon gift card for each new client that you refer to us. To earn one (or more), simply tell your friends and associates about PSS and the services we offer.

If they would like to learn more about all of our services, have them contact Lisa Cerrone by emailing lisac@payrollservicesolutions.com or call 215-624-0922 and provide their contact information; she will then explain anything that is unclear and get them signed up, letting you know this has happened.

When your referral successfully becomes a new customer, our team will send you a $50 Amazon Gift Card or you can choose to apply a $50 credit to your account.

This is a win-win: We can all use some extra cash and your signed-up referral gets to experience our excellent customer service and support.

Financial Planning/Goal Planning

What do the stock market and gymnastics have in common? The answer: planning and determination.

Fun Fact #1: In the year 2000, the S&P 500 peaked at its highest the stock market had ever seen. Since then, the market volatility has been anything but predictable. We have seen record highs just before the bubbles burst. In 2007, the market returned record highs only to see significant lows in 2008. As of the close of trading June 11, 2021, the market is at its highest its ever seen.

  • Despite the highest of the highs and the lowest of the lows, investors who hung in there and stayed the course have averaged a 9% rate of return year after year. (Source: BTN Research)

 

Fun Fact #2: Gymnasts constantly meet personal highs and lows throughout their careers.

  • Much like financial planning, meeting your personal goals requires hard work and dedication. Gymnast Simone Biles is no exception to this rule. She won her first senior U.S. women’s all-around title in 2013 at age 16. Biles won her seventh senior US women’s all-around title in 2021 at age 24. The seven titles are the most earned by any American female gymnast in history. (Source: USA Gymnastics) Her success illustrates that anyone can meet their own goals with determination and planning.

 

Moral of the story: With the right planning and determination, you can achieve your personal and financial goals. If you are interested in reviewing your financial goals to see whether you are on track, call PSS at 215-624-0922 so we can set up your free consultation.