Hi everyone, I was wondering if someone could help explain to me what the SCAP Tax means for individuals living in Pennsylvania.
The email I received states - " Certain states have not adopted the federal treatment (currently Alabama, Indiana, New Jersey and Pennsylvania). If you work in one of these states, the full Starbucks Tuition Benefit is taxable for state income purposes and may be subject to applicable state tax withholding. This will be recorded on your paycheck as "SCAP State Tax." In all other state and/or local jurisdictions that have a personal income tax, the benefit is taxable to the extent it exceeds the $5,250 federal exclusion."
I wish I knew what this means and what this will look like on my paycheck, but I genuinely don't.
Thanks everyone!