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§ 7316.2. Withholding tax requirement for nonemployer payors

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 72 P.S. Taxation and Fiscal AffairsEffective: June 30, 2021

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 72 P.S. Taxation and Fiscal Affairs
Chapter 5. Tax Reform Code of 1971 (Refs & Annos)
Article III. Personal Income Tax (Refs & Annos)
Part VII. Withholding of Tax
Effective: June 30, 2021
72 P.S. § 7316.2
§ 7316.2. Withholding tax requirement for nonemployer payors
Currentness
(a) To the extent not already required to withhold tax on payments under section 316.1,1 a person that:
(1) makes payments of income from sources within this Commonwealth described in section 303(a)(1) or (2)2 to either a nonresident individual or an entity that is disregarded under section 307.213 that has a nonresident member; and
(2) is required under section 335(f)(1)4 to file a copy of form 1099-MISC or 1099-NEC with the department regarding the payments;
shall deduct and withhold from the payments an amount equal to the net amount of the payments multiplied by the tax rate specified under section 302(b).5
(b) Withholding of tax by payors is optional and at the discretion of the payor with respect to payees who receive payments of less than $5,000 annually from the payor.
(c) This section shall not apply to payments made by a payor to a payee if the payor is:
(1) The United States or an agency or instrumentality thereof; or
(2) The Commonwealth or an agency, instrumentality or political subdivision thereof.
(d) The department may prescribe regulations to implement and clarify the withholding requirement set forth in this section.

Credits

1971, March 4, P.L. 6, No. 2, art. III, § 316.2, added 2017, Oct. 30, P.L. 672, No. 43, § 13, effective in 60 days [Dec. 29, 2017]. Amended 2021, June 30, P.L. 124, No. 25, § 3.1, imd. effective.

Footnotes

1
72 P.S. § 7316.1.
2
72 P.S. § 7303.
3
72 P.S. § 7307.21.
4
72 P.S. § 7335.
5
72 P.S. § 7302.
72 P.S. § 7316.2, PA ST 72 P.S. § 7316.2
Current through Act 11 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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