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Pennsylvania Statutes Title 72 P.S. Taxation and Fiscal Affairs § 7316.2. Withholding tax requirement for nonemployer payors

Current as of January 01, 2026 | Updated by Findlaw Staff

(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 307.21   3 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.

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.
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Cite this article: FindLaw.com - Pennsylvania Statutes Title 72 P.S. Taxation and Fiscal Affairs § 7316.2. Withholding tax requirement for nonemployer payors - last updated January 01, 2026 | https://codes.findlaw.com/pa/title-72-ps-taxation-and-fiscal-affairs/pa-st-sect-72-7316-2/

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