The Wage Tax must be filed quarterly and paid on a schedule that corresponds with how much money is withheld from employees' paychecks. If I am a resident of Pennsylvania working in a reciprocal state, how do I claim a withholding exemption from the state I work in?All Philadelphia residents owe the City Wage Tax, regardless of where they work. Non-residents who work in Philadelphia must also pay the Wage Tax. See temporary disability benefits in the section below. The official term for withholding money from a payment is "offset" or "administrative offset. The official term for withholding money from a payment is "offset" or "administrative offset. And State. Withholding. For renters, we assumed that landlords passed all property taxes on to tenants through rent in proportion to the number of units in a building. If your principal place of business is outside the United States, file with the Internal Revenue Service, IRS SSA CAWR, Philadelphia, PA. 19255-0533.