The Wage Tax must be filed quarterly and paid on a schedule that corresponds with how much money is withheld from employees' paychecks. Employers are required to withhold the Philadelphia resident rate for employees who live and work in Philadelphia.Employee contributions are based on an individual's total (gross) wages and are not limited to the taxable wage base in effect for employer contributions. Description: Use this instruction sheet, employer certification letter template, and cover page when requesting a nonresident Wage Tax refund. Complete Form W-4 so that your employer can withhold the correct federal income tax from your pay. Give Form W-4 to your employer. Complete the form in accordance with the instructions. O Both the employee and their supervisor must sign the form if a paper form is submitted. The makeup of this levy has changed, with proportionally more of the tax coming from Philadelphians and proportionally less from nonresidents. You must withhold New Jersey tax if your employee does not complete the certificate.