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“New Hampshire v. Massachusetts Wage Tax Hearing Denied, Issue Far from Settled”

October 7, 2021

Article by Jennifer Karpchuk on “New Hampshire v. Massachusetts Wage Tax Hearing Denied, Issue Far from Settled”


In an article published on October 7, 2021, in CPA Now, Philadelphia-based Shareholder Jennifer Karpchuk discusses a case that the U.S. Supreme Court declined to review this past June. This case potentially could have impacted Pennsylvania’s ability to collect income taxes from nonresidents and the City of Philadelphia’s ability to continue to apply its “requirement of employment” rule for the city’s wage tax.

“Although a hearing was denied, the underlying issues in New Hampshire v. Massachusetts are far from settled,” explains Karpchuk. “Not only is the issue still prevalent with regard to New Hampshire residents who could individually bring claims in Massachusetts courts regarding that state’s policy, but it is also alive in those states and localities that employ “convenience of the employer” rules, including Pennsylvania and Philadelphia.”

She further outlines that many jurisdictions could be affected by a renewed interest in the issue spurred on by New Hampshire v. Massachusetts. Philadelphia maintains its own convenience-of-the-employer rule for purposes of city wage tax.

“New Hampshire’s case shines a spotlight on conveniences-of-the-employer states and localities,” said Karpchuk. “It is possible taxpayers may challenge similar policies in other jurisdictions, including Pennsylvania and Philadelphia.”

To read the full article, you may click here.