The Fontana Group, Inc.

FAQ


Here are a list of frequently asked questions that we receive.   As always if your question is not addressed below or if you have additional questions please by all means give us a call!  That is why we are here (year round!) to help and assist you with tax and accounting matters.

INDIVIDUAL

Philadelphia School Income Tax - The School District of Philadelphia imposes a tax on various classes of unearned income which are not subject to Philadelphia Business Privilege Tax or Wage Tax.
All residents of the Philadelphia School District who receive this type of income must pay the tax.
If you are a resident for the portion of the year, the amounts are pro-rated for your period of residency.

Philadelphia Earnings Tax - The City Wage Tax, also called the Earnings Tax, is a tax on salaries, wages, commissions and other compensation paid to an employee who is employed by or render services to an employer.  Generally, individuals who work for a company in Pennsylvania will find that the company deducts the Wage Tax from their pay since this is required by law.

All Philadelphia residents owe the City Wage Tax regardless of where they perform services.
Non-residents who perform services in Philadelphia must also pay the Wage Tax.
If you are a resident of Philadelphia or non-resident who works in Philadelphia and your employer is not required to withhold the tax, you must register for an Earnings Tax Account. 

BUSINESS

Business Privilege Tax - Every individual, partnership, association and corporation engaged in a business, profession or other activity for profit within the City of Philadelphia must file a Business Privilege Tax Return, whether or not they earned a profit during the preceding year.

Rental activities are usually considered to be business activities. 

Every estate or trust (whether the fiduciary is an individual or a corporation) must file a Business Privilege Tax Return is the estate or trust is engaged in any business or activity for profit within the City of Philadelphia.

The Business Privilege Tax is based on both gross receipts and net income.

Both parts must be filed. Returns for this tax are due by April 15.

If you maintain a Business Privilege License but do not actively engage in business, you must file the Business Privilege Tax return and indicate that no business occurred.  

If you do not file a return, you will receive a non-filer notice and court costs could be imposed.

A Business Privilege License is required for each business entity.  

Additional Licenses may apply to your specific venture (e.g. Food, Sign, Rental and Profession).

Net Profits Tax -  The Net Profits Tax is levied on the net profits from the operation of a trade, business, profession, enterprise or other activity conducted by individuals, partnerships, associations or estates and trusts. 
(The rental of property, in most cases, is considered the operation of a business.)

The tax is imposed on the entire net profit of any self-employed person who is a resident of Philadelphia regardless of the location of the business. 

It is also imposed on businesses conducted in Philadelphia by non-residents.  

Corporations are exempt from this tax.

Philadelphia Wage Tax - The City Wage Tax, also called the Earnings Tax, is a tax on salaries, wages, commissions and other compensation paid to an employee who is employed by or renders service to an employer.
Generally, individuals who work for a company in Pennsylvania will find that company deducts the Wage Tax from their pay since this is required by law.  

All Philadelphia residents owe the Earnings Tax regardless of where they perform services.
Non-residents who perform services in Philadelphia must also pay the Wage Tax.
All employers having a place of business in Pennsylvania are required to register with the City of Philadelphia within 30 days of becoming an employer of a resident of Philadelphia and they are required to withhold and remit the Wage Tax at the prescribed rate from all residents of Philadelphia in its employ.

The City issues coupon voucher books to employers to simplify their payments.  
If you are a resident of Philadelphia or a non-resident who works in Philadelphia, and your employer is not required to withhold the tax, you must register for an Earnings Tax Account.  



Use and Occupancy Tax - The Business Use and Occupancy Tax is a tax on the business, trade or other commercial use and occupancy of real estate located in Philadelphia.

The tax is due if your business is physically located in Philadelphia, you operate your business from your Philadelphia residence, tenants, sub-tenants or owners use the Philadelphia property for business purposes. 

STATE OF NEW JERSEY

                                                                       Answers to Frequently Asked Questions
Individual


I only lived in New Jersey for part of the year. Which return do I file, resident or nonresident?

Any person who became a resident of New Jersey or moved out of the State during the year and whose income from all sources for the entire year is greater than $20,000 ($10,000 if filing status is single or married/CU partner, filing separate return) must file a New Jersey resident income tax return (Form NJ-1040) and report that portion of their income received while a resident of New Jersey. A part-year resident who received income from New Jersey sources while a nonresident of this State must also file a New Jersey nonresident return (Form NJ-1040NR) if their income from all sources for the entire year exceeds the filing threshold above. Part-year residents (and part-year nonresidents) must prorate all income, exemptions, deductions, and credits, as well as the pension and other retirement income exclusions, if applicable, to reflect the period covered by the return.

Is the Federal Sales Tax deduction applicable for New Jersey income tax purposes.

New Jersey law provides no deduction from income for sales taxes paid.  You may not claim a deduction for sales tax on your New Jersey income tax return. 

Is the Homestead Rebate (property tax reimbursement, FAIR rebate, NJ SAVER rebate) taxable?

For New Jersey gross income tax purposes the homestead rebates, property tax reimbursement payments, FAIR rebates, and NJ SAVER rebates are not taxable, and should not be reported on the New Jersey gross income tax return.

Is unemployment/disability taxable for New Jersey gross income tax purposes?

Unemployment compensation is not subject to New Jersey gross income tax and should not be included on the New Jersey gross income tax return.  Temporary disability received from the State of New Jersey or as third party sick pay is not subject to New Jersey gross income tax return.

Business

How do I start a Business in New Jersey?

If you are planning to start a business in New Jersey, you must register the business with the State of New Jersey at least 15 business days prior to opening. This will enable the State of New Jersey to send you all of the forms and information necessary for you to comply with New Jersey tax laws.

The New Jersey Complete Business Registration Package contains an Application for Business Registration, Form NJ-REG as well as applications for applying for Motor Fuel and Cigarette Licenses and the State of New Jersey New Hire Reporting Form. You will use your Federal Employer Identification Number (FEIN) or your Social Security Number on the application. It is important that you include this number on all returns, checks, and other correspondence that you send to the State of New Jersey.

If you have indicated on your Application for Business Registration that you will be collecting sales tax, remitting use tax, or using New Jersey Exemption Certificates, the State of New Jersey will send you a New Jersey Certificate of Authority for sales tax. This is your permit to collect sales tax, and to issue and receive exemption certificates. The New Jersey Certificate of Authority must be displayed at your place of business. 

If the State of New Jersey determines that you will not have a tax liability to New Jersey, you will receive a letter advising you that your business does not need to be registered. If the nature of your business changes, or a tax responsibility develops, you should submit an amended Application for Business Registration. If you open additional locations for an existing business, you must register each new location with the State of New Jersey.


How can a business change its address?

You can change the address for a business account either online or by filing a paper Form REG-C-L, Request for Change of Registration Information.





The Fontana Group, Inc.
1723 South Broad Street
Philadelphia, PA 19148
Phone - (215) 467-6900
     Fax - (215) 271-2578

Domenic.Fontana@gmail.com