Philadelphia recently changed their enforcement of the "City Wage Tax" to protect against such things. If you were hired for a position in the city you must pay the tax if your WFH is 40 miles from city limits. They're currently threatening all business small and large with an audit if they don't comply. We've been through four different accounting firms who all told us the same thing.

It's unfortunate but it's still better than paying the tax and making the commute.