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UPDATE – PA 1099 Withholding Requirements

Pennsylvania DOR delays the new 1099-MISC withholding requirements

The Pennsylvania Department of Revenue has recognized that additional time will be needed for businesses and the department to be in compliance with the new withholding provisions of Act 43 of 2017, H.B. 542. Initially, the act called for withholding on certain payments exceeding $5,000 to PA non-resident individuals beginning January 1, 2018.  For additional details, see our prior release (http://www.stephanoslack.com/pa-new-1099-withholding-requirements/)

PA has since revised the withholding start date.

The 1099-MISC income subject to the withholding provisions of Act 43 of 2017 will not be subject to assessment for a failure to withhold for a period ending prior to July 1, 2018. However, when tax is withheld, it must be filed and remitted as required by law. The department expects that payors/lessors will file the related 1099-MISC, with boxes 16 and 17 completed, with the department timely in January 2019.

We encourage taxpayers to use this extra time to ensure that internal procedures are updated to be in compliance with the new law. We are here to help with any questions you may have.

For additional information – Link to PA FAQs

http://www.revenue.pa.gov/GeneralTaxInformation/Tax%20Types%20and%20Information/EmployerWithholding
/Documents/1099-MISC_Fact_Sheet.pdf

February 27, 2018