Knowledge and Insights

State of PA Changes 1099-MISC Withholding Tax Requirements for 2018

July 2018

Tax Block Letters on Top of Coins

The State of Pennsylvania issued changes to 1099-MISC tax withholding requirements for individuals and businesses for 2018. Details can be found on this resource document provided by the Pennsylvania Department of Revenue (A – link to doc), which contains links to additional information and State websites.

Essentially, if a Pennsylvania company is paying a non-resident person or single member LLC for services, it should be withholding 3.07% effective no later than July 1,, 2018.  Also, if it is paying rent to a non-resident individual, estate or trust, it should withhold on the payments made pursuant to a lease to that non-resident.

Please contact your tax advisor or any of the tax professionals at Mercadien with inquiries related to Pennsylvania’s new 1099-MISC withholding requirements, or for assistance with your tax planning and preparation needs.