Reciprocal Tax Question (Live in NJ, Work in PA)
I work for a textile manufacturer, and the industry has been in varying levels of decline for my entire career (30+ years). Last month one of our biggest competitors closed their doors for good, which has prompted lots of "what if" discussion among my coworkers. Yesterday some of us were talking about unemployment, and it caused me to investigate a little further into my situation.
I'm the only person in my PA company who lives in NJ. I know there's a reciprocal tax agreement between the States, and I have assumed that since my taxes are paid in NJ, I would collect unemployment from NJ. But the NJ website says if I work in PA, I would collect from PA. Is that true? Seems really weird to me that my UI payments go to NJ, but I would collect from PA if (godferbid) I were to be laid off.
Monty You generally collect unemployment benefits from your worked-in state. For you that is PA.
Carol Lenz If you work in PA., your unemployment paycheck deduction is probably going to the State of Pennsylvania. Look at your pay stub. If it says NJSUI, then it would be NJ, but PA SUI gets remitted to Pennsylvania. Just look at your pay stub for that info.
Lonesome Dove When I was outsourced from my job in PA a couple of years ago, even though I am in NJ, I had to file unemployment through PA, since the job was there. And, even worse, the unemployment payout in PA was for less that NJ would have been if I was eligible in NJ.
The Rhyme Animal My pay stub says New Jersey UI. That's what seems weird to me. I get that I would file in PA if my UI was being paid to PA, but it's not.
I'm thinking maybe I need to have a chat with our HR person when she gets back from vacation, just to make sure my taxes are being paid correctly. As I said, I'm the only person in the company who lives out of state. Could be they've made a mistake.
In my case,I looked at an old pay stub from when I worked in PA, it was going to PA-SUI, so perhaps your job either screwed it up, or the rules have changed. Hope you get to file in NJ, you will get more.
One discussion, sounds messy:
https://www.google.com/amp/s/ttlc.intuit.com/community/state-taxes/discussion/my-pa-based-employer-withheld-nj-fli-nj-sdi-and-nj-sui-i-m-a-nj-resident-do-i-need-to-file-to-get-a/00/710263/amp
OnTheEdge @ The Rhyme Animal:
Again, just to be clear, I’m not filing. This is just my own speculation/investigation following a conversation that went on at work after a competitor went out of business. Now I just want to be sure my payroll is being handled correctly.
The reciprocal agreement is only on income tax. Your UI may not be paid to NJ at all. Like you mentioned, your HR is the exact people you need to talk to.
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