Pennsylvania’s Form 1099-MISC Reporting Requirement

Each January, the Internal Revenue Service requires businesses to provide 1099-MISC forms for payments made to independent contractors associated with non-employee compensation.  The IRS also requires that a duplicate copy be filed at a later date with their office, so that the IRS can match the income on the individual’s personal return. Pennsylvania now requires that a 1099-MISC also be filed with the Pennsylvania Department of Revenue for the 2012 tax year.

Under Pennsylvania Act 85 of 2012, entities paying either nonemployee compensation for Pennsylvania-based work or Pennsylvania-source oil/gas lease payments are required to submit copies of federal forms 1099-MISC to the Pennsylvania Department of Revenue.  The forms are required for payments of Pennsylvania-source income to resident and nonresident individuals, entities treated as partnerships for tax purposes or single-member limited liability companies from any entity required to provide form 1099-MISC to the federal government with respect to these payments. The same due dates apply for Pennsylvania as they do for the IRS as will be discussed below.

A business can file the 1099-MISC forms with the Department of Revenue in one of two ways:

  • A business that has a Pennsylvania employer withholding account can submit the forms electronically through e-TIDES. The forms will have to be filed using a multi-import file upload.  This method of transmission is required for these businesses if 250 or more 1099-MISC forms are submitted.  Forms filed electronically are due March 31st (April 1st for this reporting year).
  • If a business does not have a Pennsylvania employer withholding account, they must file the forms by paper and mail to the PA Department of Revenue, P.O. Box 280412, Harrisburg, PA 17128-0412.  Businesses that have a Pennsylvania employer withholding account but file less than 250 1099-MISC forms can use either method. Forms filed by paper are due February 28th.

The same 1099-MISC form used to report Federal payments should also be used for Pennsylvania.  Pennsylvania also follows Federal for applicable payment thresholds. Pennsylvania requires entities to report payments made to a nonemployee contractor when payments of Pennsylvania-source income exceed a total of $600 in a calendar year, similar to the IRS $600 threshold.  As previously discussed, only Pennsylvania-sourced income should be reported to the Pennsylvania Department of Revenue.  However, if this is not possible, Pennsylvania requests that boxes 16, 17 and 18 of the form 1099-MISC be completed.

To learn more about the new Pennsylvania 1099-MISC reporting requirement, please contact the construction professionals of McKonly & Asbury by seeing the author info below.

Michael Eby, CPA

Michael Eby, CPA

Michael Eby (CPA), is a Manager in the firm’s state and local tax consulting and middle-market tax compliance practices. He is also a member of both the American and Pennsylvania Institutes of Certified Public Accountants.

If you have any questions regarding this article or would like to speak to someone about our services, please email Michael at meby@macpas.com.

Michael Eby, CPA

PrimeGlobal


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