The Wage Tax must be filed quarterly and paid on a schedule that corresponds with how much money is withheld from employees' paychecks. Tax filing and payment details for people who work in Philadelphia but don't have City Wage Tax withheld from their paycheck.See below for answers to common questions about debt and judgment collection and how to protect yourself from aggressive debt collectors. Then, your employer must legally withhold a certain amount of your wages to pay your debt and send that money to the court clerk for your debt. The bankruptcy estate's trustee is responsible for withholding tax on any payments subject to withholding under Pennsylvania law. You can discharge income taxes that came due three years before filing for bankruptcy as long as it has been at least two years since you filed the tax forms. I just discovered that my employer has been taking out Philadelphia withholding from my paycheck for quiet a while. At Sadek Bankruptcy Law Offices, we realize that every situation is different. You must give Form NJ-W4 to your employees to fill out and return to you. After you hit No, you will be prompted to fill out the information for what local tax you paid and how much.