Answer ID 3599   |    Published 01/20/2019 02:29 PM   |    Updated 03/27/2019 11:51 AM

How does Pennsylvania tax the wages of telecommuter's?

When determining the taxability of income for telecommuters, the Department of Revenue looks to the employment agreement between the employee and their company. If the agreement provides the employee with a physical workspace at the employer’s PA location and the employee elects to perform their work outside of PA, then the income for that employee is allocated to PA. If the employer does not have a physical work space in PA available for the employee to perform their duties and the work is performed outside of PA strictly for the benefit of the employer, the income for that employee is then allocated to the state in which those duties were performed.

Pennsylvania Department of Revenue, Answer ID: 3599