Determination engine

Which state do you actually withhold in?

Reciprocity, convenience-of-the-employer, nonresident thresholds and unemployment localization, applied together to one employee's facts. Every answer cites the state source it came from.

Withhold Virginia income tax.

Pennsylvania and Virginia have a reciprocal agreement, so the work state stands down once the exemption certificate is on file.

Income tax withheld to

Virginia

Graduated, top rate 5.75%

Employee certificate

REV-419

Employee's Nonwithholding Application Certificate

Unemployment insurance

Pennsylvania

Localized under factor 1: Localization.

Reciprocal agreement

Yes

Pennsylvania exempts Virginia residents.

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File REV-419 with the employer

Reciprocity is not automatic. Until the employee files REV-419 (Employee's Nonwithholding Application Certificate) you are legally required to withhold Pennsylvania tax. Keep the signed form on file; it is not sent to the state.

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Withhold Virginia income tax instead

Under the agreement the employee is taxed only by their state of residence. You will need a Virginia withholding account.

Reciprocity does not cover Pennsylvania local taxes

Roughly 2,470 municipalities and 469 school districts levy an Earned Income Tax (EIT) and/or a Local Services Tax (LST), withheld by employers under Act 32. Philadelphia's Wage Tax is separate from the Act 32 system. CRITICAL: the PA/NJ reciprocal agreement does NOT cover the Philadelphia Wage Tax -- New Jersey residents working in Philadelphia still owe it.

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Pennsylvania withholds an employee unemployment contribution

Pennsylvania withholds employee UC contributions of 0.07% (70 cents per $1,000) on ALL gross wages - there is no employee wage cap, unlike the $10,000 employer taxable wage base.

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Employer registrations you will need

Virginia — Income tax withholding: Virginia Department of Taxation
Pennsylvania — Unemployment insurance: Pennsylvania Department of Labor and Industry, Office of UC Tax Services

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Get the form

REV-419 — Pennsylvania (official state source)

Pennsylvania profile Virginia profile Full write-up for this pair

Change the inputs

Withholding determination

Answer six questions. The result is a shareable link, so you can paste it into a ticket or an email.

Employee lives inState of residence

Work is performed inWhere the employee physically sits

Employer is based inWhere the work is directed from

Days in the work stateThis calendar year, leave blank if unknown

Wages from work-state daysUS dollars, leave blank if unknown

Arrangement Works remotely rather than at an employer location Remote work is an employer necessity, not employee preference

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This is a determination aid, not advice. StateSide encodes published state rules and applies them mechanically to the facts you enter. It does not know your entity structure, your nexus history, your equity compensation, or the dozens of exceptions that turn a clean rule into a judgement call. Every determination cites the state source it came from — verify against that source, and take anything consequential to a payroll tax professional before you act on it.