IF YOUR BUSINESS MAKES PAYMENTS TO NON-RESIDENTS OF PA
Be aware that the PA DOR has SIGNIFICANTLY changed its requirements for submission of Federal Form 1099-MISC and withholding on Pennsylvania-Source Non-Employee Compensation, Business Income and Lease Payments
Businesses that fail to comply can result in additional taxes owed to the PA DOR.
Beginning January 1, 2018, anyone that pays PA-source non-employee compensation or business income to a non-resident individual or disregarded entity that has a non-resident member and is required to file a Federal Form 1099-MISC with the DOR, such taxpayer is required to withhold from such payments an amount equal to the tax rate specified at 72 P.S. 7302 (currently, 3.07%). Withholding is optional for payors [Read more…] about IF YOUR BUSINESS MAKES PAYMENTS TO NON-RESIDENTS OF PA