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but are not limited to: players and non-player personnel such as coaches, trainers, owners and other team

support staff.

Officials

Officials include nonresident individuals officiating or judging any of the games of the professional sports

teams or entertainment activities. Officials also include any employees of the professional sports team league

offices or broadcasters of the games of the professional sports teams.

Entertainment Entity

An entertainment entity is defined as any business association, partnership, corporation, S corporation or

tax-exempt organization that employs nonresident individuals who perform services within the context of the

normal business operations within the Commonwealth of Pennsylvania. Examples of entertainment entities

include, but are not limited to, NASCAR drivers, musical groups or individual singers, comedy performers,

golfers, other personal service corporations, circuses, off-Broadway musicals or plays, dancing troupes or

individual dancers, boxing, dog and horse shows, ice skating, etc.

NOTE: Entities may obtain additional information concerning withholding of PA Personal Income Tax in the

brochure, Pennsylvania Employer Withholding (REV-580), and register to withhold by completing the PA

Enterprise Registration Form (PA-100). Both documents can be found at the Department’s Web site at

Qualified Individual Documentation Requirements

The entity must complete a PA Schedule NRC-AE-1 for each of its nonresident individuals. The entity must

maintain for inspection at its principal office the following:

1. The list of all electing and non-electing nonresident individuals with all pertinent information for the

nonresident individuals such as the name, address, Social Security Number, apportioned compen-

sation, tax due before application of payments and credit, share of tax withheld or payments and

share of overpayment, if any.

2. One of the following:

a. A certification that each of the nonresident individuals on a PA Schedule NRC-AE-1 has elected

and agreed to file as a participant in a PA consolidated group return for the taxable year; or

b. A copy of the agreement that evidences that each of the qualified nonresident individuals on a PA

Schedule NRC-AE-1 elected to file as a participant in a PA consolidated group return for the tax-

able year.

Effect of a Consolidated Group Return

Unless rejected, the Department considers the PA-40 NRC-AE a group of separate PA returns that meet the

individual filing requirements of the Pennsylvania law. The Department’s acceptance of a PA-40 NRC-AE is

tentative and subject to revocation upon audit or review. The Department retains the right at any time to re-

quire nonresident individuals to file a PA-40 form. The Department also retains the right to withdraw and mod-

ify the authority to file a PA-40 NRC-AE. A participating nonresident individual may not change his or her

election to file from PA-40 NRC-AE to a PA-40 or from a PA-40 to a PA-40 NRC-AE after filing the PA tax

returns unless the entity files an amended PA-40 NRC-AE, removing the nonresident individual from those

electing to be included in the consolidated filing and (if required) the nonresident individual files a separate

PA-40 return.

GENERAL INSTRUCTIONS

Identification Information

File the PA-40 NRC-AE under the FEIN, name and address of the entity. Input for the name of the entity is

limited to 50 characters (including spaces).

Final Return

If the entity is out of business, fill in this oval. Enter the date the entity went out of existence and explain the

reason for filing the return.

Number of Nonresidents Electing

Enter the number of nonresident individuals electing to file on the PA-40 NRC-AE form.

Form Pa-40 Nrc-Ae - Pa-40 Nrc-Ae, Consolidated Personal Income Tax Return For Qualified Electing Nonresident Professional Athletes, Non-Player Personnel, Officials And Entertainers Page 2

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