I am a NJ resident who works in Philly.
The Philly local wage tax is withheld at 3.44% of my pay and is fixed . I am allowed to use that as a dollar for dollar credit on my NJ state tax return.
NJ law says that an employer doesn’t have to withhold state tax if they are withholding other localities at a rate equal or greater than NJ.
Based on my current paychecks I will end up with state wages of $100k and Local Wothhokding of $3400.
I will also have a few hundred dollars withheld from NJ to make up the necessary difference in tax.
my question is can a w2 be issued with a low state withholding to income rate?
i.e state wages of $100k, withholding of $250
