On September 2, 2016, New Jersey Governor Chris Christie (R) notified Pennsylvania that New Jersey terminated the reciprocity agreement between the two states. As a result of the termination, a Pennsylvania employer will be required to pay New Jersey withholding tax on the wages of a Pennsylvania resident employee attributed to work performed in New Jersey. Also, a New Jersey employer will be required to pay Pennsylvania withholding tax on the wages of a New Jersey resident employee attributed to work performed in Pennsylvania.
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