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New Pennsylvania Personal Income Tax Withholding Requirements


New Rules for Lessees of Real Estate Every lessee of Pennsylvania real estate (other than a lessee of residential property) that makes a lease payment to a nonresident landlord, or an agent thereof, is required to withhold PIT at the rate of 3.07 percent ...


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The withholding requirement is mandatory if the business or individual makes payments of $5,000 or more annually to a particular payeeHowever, the business or individual may choose to make such withholdings even if the total annual payments are less than $5,000If a business or individual payor is unsure of the total amount of payments that will be made to a nonresident payee during the year, it is recommended that the payor withhold and remit the PIT from all payments made to the nonresident payee. Failure of a payor to withhold and remit the required amount of PIT will result in the payor (as well as any representative thereof or any other person receiving any portion of the withheld amounts) becoming personally liable for the amount of PIT it failed to properly withhold, plus interest and penalties thereonIf the payor does not withhold PIT as required and the tax is later paid by the nonresident payee, the payor will still be liable for any applicable interest and penalties. Registration and Due Dates A lessee that withholds PIT on lease payments to Pennsylvania nonresident lessors and any individual or business that withholds PIT on payments of Pennsylvania source non-employee compensation or business income to nonresident payees is required to: Apply for a 1099-MISC withholding account by completing electronically a Pennsylvania Enterprise Registration Form (Form PA-100); Electronically file quarterly withholding returns and annual reconciliations with the Pennsylvania Department of Revenue (PA DOR) via e-TIDES; Electronically remit the withheld monies via e-TIDES; and File an annual withholding statement (Form 1099-MISC) with the nonresident lessor or nonresident payee (as applicable) and the PA DOR showing the total amount of payments made and the amount of PIT withheldThe nonresident lessor or payee will need to file a copy of the withholding statement with its PIT return. Quarterly withholding returns for the quarters ending on the last day of March, June, September, and December must be filed on or before the last day of April, July, October, and January, respectivelyAnnual withholding reconciliations and the Forms 1099-MISC must be filed on or before January 31 of the year following the tax year during which the payments and withholdings were madeThe withheld monies must be remitted to the PA DOR according to the following schedule: Quarterly — If total withholding is under $300 per quarter, the taxes are due the last day of April, July, October, and January. Monthly — If total withholding is $300 to $999 per quarter, the taxes are due the 15th day of the following month. Semi-Monthly — If total withholding is $1,000 to $4,999.99 per quarter, the taxes are due within three banking days of the close of the semi-monthly period. Semi-Weekly — If total withholding is $5,000 or greater per quarter ($20,000 per year)Due dates are listed on the Form REV-1716 published annually by the PA DOR.   Cozen O'Connor - Heidi RSchwartz and Cheryl AUpham Back Forward View original Forward Print Save ShareFacebookTwitterGoogle PlusLinked In Follow Please login to follow content. Like var lex_script_article_filtersave = true; Filed under USA Real Estate Tax Cozen O'Connor Tagged with Pennsylvania IRS Lease Income tax Tax withholding in the United States Popular articles from this firm How Should Employers Respond to #MeToo? * New Tax Bill May Require Real Estate Professionals to Rethink Long-Held Tax Truths * USCIS Confirms No Procedural Changes for H-1B FY2019 Cap Season * It's Easier Than Ever to Not Compensate Interns, But There's a Catch * The State AG Weekly Update February 1, 2017 * If you would like to learn how Lexology can drive your content marketing strategy forward, please email enquiries@lexology.com. 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"I have enjoyed receiving the Lexology newsfeeds over the last few months and in general find the articles of good quality and relevantI like the fact that the email contains a short indication of the subject matter.. "I have enjoyed receiving the Lexology newsfeeds over the last few months and in general find the articles of good quality and relevantI like the fact that the email contains a short indication of the subject matter of the articles, which allows me to skim the newsfeed very quickly and decide which articles to read in more detail." Marion Rich Director of Legal & Contractual Affairs British Constructional Steelwork Assoc Ltd Back to Top RSS feeds Contact Submissions About Testimonials Cookies Disclaimer Privacy policy Login Register Follow on Twitter Search

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