Important Update to New Pennsylvania 1099-MISC Withholding Requirement

Act 43 of 2017 created a withholding obligation for certain payors of Pennsylvania-source income and lessees of Pennsylvania real estate to non-residents. It also expanded the requirements with respect to when a copy of Federal Form 1099-MISC is required to be filed with the Pennsylvania Department of Revenue.

In response to the PICPA's request to the DOR, the department has agreed to take the following actions:

  • 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.
For more information on the new PA 1099-MISC withholding tax requirements, click here to visit the Pennsylvania Department of Revenue's website.