HARRISBURG – A measure aimed at providing greater flexibility for Pennsylvanians who work for an employer in another state has been approved by the Senate Finance Committee, according to the bill’s prime sponsor, Sen. Kristin Phillips-Hill (R-York). This reform is a significant step forward in addressing the complexities faced by Pennsylvania residents amidst the evolving landscape of remote work.
The COVID-19 pandemic prompted the temporary suspension of regulations impacting Pennsylvania residents who worked from home for corporations based outside of the Commonwealth. Phillips-Hill’s legislation seeks to permanently codify this exception, allowing employees to work from home for up to 50% of the year without triggering the Corporate Net Income Tax (CNIT).
“Many citizens across southern York County are employed by corporations based in Maryland,” Phillips-Hill explained. “Despite the availability of remote work options, Pennsylvanians have been hindered by tax implications that do not reflect the employment norms of 2024. This bill aims to rectify that, ensuring that our neighbors can fully embrace the opportunities provided by their employers.”
According to Phillips-Hill, the past four years have underscored the importance of adaptable work arrangements, especially for Pennsylvanians who commute to out-of-state employers. This bill aims to alleviate tax-related burdens and enable Pennsylvania citizens to fully benefit from the remote work options offered by their employers.
By providing greater flexibility in work arrangements, Pennsylvania aims to attract new residents and support the needs of its workforce. The legislation will go to the full Senate for consideration.
Contact: Kiersten Laird
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