1099-MISC Pennsylvania Tax Information

 

1099-MISC Pennsylvania Withholding Requirement   

 

Beginning January 1, 2018, the Pennsylvania Department of Revenue now requires that payments of Pennsylvania source non-employee compensation or business income to a non-resident individual or disregarded entity that has a non-resident member and is reported on a 1099-MISC, have withheld from such payments an amount equal to the tax rate specified at 72 P.S. § 7302 (which is currently 3.07%).

 

Effective June 26, 2018, Villanova University will withhold and remit income tax from all payments made if the vendor meets the above stated requirements.  A Form 1099-MISC will also be filed with the Pennsylvania Department of Revenue noting the full year’s Pennsylvania source non-employee compensation or business income earned and any tax withheld and remitted to the State.

 

  • More information about these changes can be found here.
  • All questions regarding this tax should be addressed by your accountant, or you can contact the PA Department of Revenue.