[BruceY100]

I live in NJ. I work at a company that has a location in PA. Do I pay my SDI / UC tax to Pa or NJ? Which state would I report to if I were to be laid-off?

Can someone explain this statement to me in simpler terms?

"This employee was coded with a primary of NJ for PP1, for the 1st check of the year he has NJ SDI taken from his paycheck for $18.53. In PP2 his state tax set up was changed to primary of NJ and secondary of PA, so PA SDI started to be taken out of his pay and the NJ SDI shows as PRV YTD SDI."
Also what is PP1 PP2 :confused: Thank You Bruce

[AtlantaTaxExpert]

I am not sure how NJ and PA assess these taxes, and how any reciprocity agreement between these two states may affect the withholding.

It would be best if you posed the question to either state's tax department.

[ebaines]

Is this a notice from your payroll department? I suspect that "PP1" and "PP2" means "Pay Period 1" and "Pay Period 2" respectively. Also, "PRV YTD SDI" is "Previous year-to-date SDI."

As an NJ resident you should be having NJ tax withheld, not PA tax - reason being that NJ and PA have a reciprocity agreement that allows residents who live in NJ and work in PA to pay only NJ tax - and vice versa. See:

Income Tax - PA/NJ Reciprocal Income Tax Agreement - NJ Taxation

It references a form to fill out for your employer so that they will withhold NJ income tax, not PA tax.

As for SDI - I'm not 100% sure on this, but I believe that SDI is NOT part of the reciprocity agreement, and hence you pay it to PA since that is where you work. But you may want to ask your payroll department.

[BruceY100]

Does PA have a short term disability insurance program? Is it mandatory to pay into this each pay period? BruceY100