You don’t have to pay Philadelphia wage tax on days worked outside the City of Philadelphia. If you were remote the whole time then your employer should have withheld Earned Income Tax from your resident municipality rather than wage tax from the City of Philadelphia.
Regardless of what happened, EIT returns should probably have been filed from 2017-2020. Most jurisdictions have mandatory filing and would give you a credit for Philadelphia wage tax on the EIT return.
File EIT returns for those years.
It would be helpful to get corrected W-2s for a number of reasons:
- EIT returns require a copy of the W-2 and original W-2 will incorrectly show Philadelphia wage tax withheld. It may delay processing if you don’t put that on your EIT return (and you should not, since it was never paid).
- The local Philadelphia wage may be higher than your EIT wage so if there is not a local EIT wage, Berkheimer or whomever may give you an issue if you use a different amount than was on the W-2 for Philly.
You should not have to file anything with Philadelphia. Your employer did not have an account with the City so Philly never received any withholding. If anything comes back in the future, you can send an explanation with a copy of your EIT returns.
Finally, you should get your Philly withholding back from your employer or ADP.
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