2 days ago
Taxes on tips and overtime pay could be abolished in Pennsylvania
HARRISBURG, Pa. (WTAJ) — Income tax on tips and overtime pay could be a thing of the past in Pennsylvania with two new pieces of legislation being introduced by House Representatives.
Representative Joe Hogan (R-Bucks County) introduced House Bill 1514, which will amend the Tax Reform Code of 1971 to remove wages from tips from being considered taxable income. The bill currently has 17 co-sponsors in the House, all of whom are Republican representatives from across the Commonwealth.
Meanwhile, Rep. Ryan Warner (R-Fayette County) introduced House Bill 1586, which will also amend the Tax Reform Code of 1971. This bill would remove overtime wages from being considered taxable income in Pennsylvania. Warner's bill currently has 12 co-sponsors, including Hogan, all Republican representatives.
'Hundreds of thousands of Pennsylvanians work in the service industry or in a field where overtime hours are offered,' Hogan and Warner wrote in a co-sponsored memorandum. 'For some, it's a part-time job to help bring in more household income. For others, the extra work is needed just to stay afloat.'
Both bills are currently with the House Finance Committee, overseen by Rep. Steve Samuleson (D-Northampton County) and Rep. Keith J. Greiner (R-Lancaster County).
'These working people are the backbone of our economy and deserve a tax cut. The change we will propose will also help businesses retain their employees and encourage out-of-state workers to move to Pennsylvania to benefit from our tax policy.'
Rep. Hogan and Rep. Warner, co-sponsored memorandumCurrently, in Pennsylvania, tipped workers are required to report that income to their employer monthly and claim it as income on their yearly PA-40 tax return.
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