By Michele Vetlov
In order to boost the state's revenues, Governor Christie withdrew from a decades old tax agreement with Pennsylvania back in September. It left many business owners and employees anxious about 2017 income taxes and filings. Read in our past blog post about the repercussions of withdrawing from the agreement.
On November 22, Gov. Christie announced that the reciprocal agreement with Pennsylvania will remain in place. New Jersey and Pennsylvania residents that work in opposite states can continue to have their wage withholding based on their state of residency.
Gov. Christie signed legislation that will streamline New Jersey's pharmacy benefit system. This modification will save the State's taxpayers millions of dollars. Governor Christie said. “By addressing a potential $250 million budget deficit from growing healthcare costs, we are now able to save an income tax reciprocity agreement with Pennsylvania that protects tens of thousands of hard working New Jerseyans from having to pay more income taxes.”
As a Manager specializing in tax at Wiss & Company, Michele Vetlov works with business owners to ensure they are compliant with state and local tax law and eligible for a variety of incentives. If you have any questions about the reciprocal agreement, reach out to Michele Vetlov at firstname.lastname@example.org or 973.994.9400.