2021 PA State Withholding Tax Rate 

At Haefele Flanagan, we are dedicated to ensuring that you have the support and guidance necessary to comply with complicated tax laws. We are committed to making sure your taxes align with your financial goals while minimizing penalties. 

2021 Tax Highlights

We have summarized the major changes, as of this date, which will affect your payroll tax calculations effective January 1, 2021. Check our website, www.hfco.com, for periodic updates.

PA Withholding of Nonemployee Compensation And Business Income

Anyone that pays Pennsylvania source non-employee compensation or business income to a nonresident individual or pass-through entity with a nonresident member and who is required to file a Federal Form 1099-MISC with the Department of Revenue is required to withhold an amount equal to the Pennsylvania personal income tax rate. Withholding is optional if the payee received less than $5,000.

PA Withholding On Some Lease Payments

Anyone leasing Pennsylvania real estate making lease payments in the course of their trade or business to a non-resident lessor must withhold an amount equal to the personal income tax rate. Withholding is optional for amounts under $5,000 annually. Lease payments include: rents, royalties, bonus payments, damage rents, and other payments made pursuant to a lease.

2020 PA State Withholding Tax Rate 

2020 Tax Highlights

We have summarized the major changes, as of this date, which will affect your payroll tax calculations effective January 1, 2020. 

PA Withholding of Nonemployee Compensation And Business Income

Anyone that pays Pennsylvania source non-employee compensation or business income to a nonresident individual or pass-through entity with a nonresident member and who is required to file a Federal Form 1099-MISC with the Department of Revenue is required to withhold an amount equal to the Pennsylvania personal income tax rate. Withholding is optional if the payee received less than $5,000.

PA Withholding On Some Lease Payments

Anyone leasing Pennsylvania real estate making lease payments in the course of their trade or business to a non-resident lessor must withhold an amount equal to the personal income tax rate. Withholding is optional for amounts under $5,000 annually. Lease payments include: rents, royalties, bonus payments, damage rents, and other payments made pursuant to a lease.

2019 PA State Withholding Tax Rate 

2019 Tax Highlights

We have summarized the major changes, as of this date, which will affect your payroll tax calculations effective January 1, 2019.

PA Withholding of Nonemployee Compensation And Business Income

Anyone that pays Pennsylvania source nonemployee compensation or business income to a nonresident individual or pass through an entity with a nonresident member and who is required to file a Federal Form 1099-MISC with the Department of Revenue is required to withhold an amount equal to the Pennsylvania personal income tax rate. Withholding is optional if the payee received less than $5,000.

PA Withholding On Some Lease Payments

Anyone leasing Pennsylvania real estate making lease payments in the course of their trade or business to a non-resident lessor must withhold an amount equal to the personal income tax rate. Withholding is optional for amounts under $5,000 annually. Lease payments include: rents, royalties, bonus payments, damage rents, and other payments made pursuant to a lease.

If you have any questions, please contact:

Fred Schutz,
Director-Tax Department
P: 856-722-5300, ext. 201
E:fred.schutz@hfco.com
Teri Niedermayer
Senior Accounting Tech
P: 856-722-5300, ext. 516
E:teri.niedermayer@hfco.com
Brian Vinciguerra
Small Business Manager
P: 856-722-5300, ext. 501
E:brian.vinciguerra@hfco.com

Additional Resources

The information contained herein is general in nature and is based on authorities that are subject to change. It is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Haefele, Flanagan & Co., PC to the reader. This material may not be applicable to, or suitable for, the specific circumstances or needs, and may require consideration of non-tax and other tax factors. Contact Haefele, Flanagan & Co., PC prior to taking any action based upon this information. Haefele, Flanagan & Co., PC assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information obtained herein.