The reciprocal agreement only applies to state income tax. Deductions, such as SDI, are not part of the reciprocal agreement.
It is not recommended that you switch back to withholding New Jersey income tax as a Pennsylvania resident. If you are a Pennsylvania resident working in New Jersey, and your employer withholds New Jersey income tax, you must file for a refund from that state. You must also pay the amount of tax due to Pennsylvania by the due date. In addition, if you earned more than $8,000 from your out-of-state employer, you should be making estimated payments to Pennsylvania in order to avoid an estimated underpayment penalty on your state tax return.
I am a PA resident. I work in a reciprocal agreement state.
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