Effective for taxable compensation paid on or after 7-1-10, the Philadelphia wage tax rate is reduced to 3.928% from 3.9296% for residents and to 3.4985% from 3.4997% for nonresidents. The tax is to be withheld and remitted at the rate in effect on the date of the paycheck, e.g., wage tax for a paycheck dated 7-1-10 for the period 6-16-10 to 6-30-10 must be withheld at the rates effective as of 7-1-10, instructs the Philadelphia Department of Revenue (DOR). Future annual rate reductions enacted last year that were supposed to go into effect 2010 to 2013 have been suspended [DOR, Important Notice: Wage Tax Rate Reduction, 5-27-10].