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HARRISBURG — In a recent development, the Senate Finance Committee has given the green light to a proposal championed by Senator Kristin Phillips-Hill (R-York) aimed at empowering Pennsylvanians with more flexible work options, particularly those engaged with employers outside the state. This move marks a significant stride in tackling the intricate challenges faced by Pennsylvania residents in the ever-evolving landscape of remote work.
The onset of the COVID-19 pandemic necessitated the temporary suspension of regulations affecting Pennsylvania residents working remotely for companies headquartered beyond the state borders. Phillips-Hill’s legislation seeks to institutionalize this exemption permanently, enabling employees to engage in remote work for up to 50% of the year without triggering the Corporate Net Income Tax (CNIT).
“Numerous individuals residing in southern York County are employed by Maryland-based corporations,” elucidated Phillips-Hill. “Despite the availability of remote work alternatives, Pennsylvanians have grappled with tax ramifications that fail to align with the contemporary employment paradigms of 2024. This bill endeavors to address this discrepancy, ensuring that our constituents can fully capitalize on the opportunities afforded by their employers.”
Phillips-Hill underscored the significance of adaptable work arrangements, especially for Pennsylvanians commuting to out-of-state workplaces, over the past four years. The bill aims to alleviate tax-related encumbrances and empower Pennsylvania citizens to leverage the remote work options extended by their employers.
Pennsylvania aims to attract new residents and bolster its workforce by fostering greater flexibility in work arrangements. The legislation will now proceed to the full Senate for further deliberation and consideration.