Section 7316.2 - Withholding Tax Requirement for Nonemployer Payors(a) To the extent not already required to withhold tax on payments under section 316.1, a person that:(1) makes payments of income from sources within this Commonwealth described in section 303(a)(1) or (2) to either a nonresident individual or an entity that is disregarded under section 307.21 that has a nonresident member; and(2) is required under section 335(f)(1) 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).
(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.Amended by P.L.1242021 No. 25, § 3.1, eff. 6/30/2021.Added by P.L. TBD 2017 No. 43, § 13, eff. 12/29/2017.