Pennsylvania now requires us to withhold 3.07% withholding tax on vendors in Accounts Payable but this is not available in Sage 300CRE to automatically report on 1099-MISC form. We are manually tracking tax payments & need to manually enter information on 1099 form.

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.

Beginning January 1, 2018, anyone that makes the following payments is required to withhold from such payments an amount equal to the tax rate specified per 72 P.S. § 7302 (currently 3.07%):

• Payments of Pennsylvania source non-employee compensation or business income to a non-resident individual or disregarded entity that has a non-resident member and is reported on a 1099-MISC.
• A lessee of Pennsylvania real estate who makes a lease payment in the course of a trade or business to a non-resident lessor.

by: Christine W. | over a year ago | 7 General Enhancements