Instructions For Form Pa-40 Nrc-Ae - Consolidated Personal Income Tax Return (Page 4 of 9) in pdf

PA-40 NRC-AE. Provide the telephone number where the Department may call between 8:30 a.m. and 4

p.m. eastern time.

Preparer/Company Name, Telephone Number, SSN or PTIN and Firm FEIN

If a paid preparer was engaged to prepare this tax return, the preparer should enter his or her name or

business name, telephone number, and his or her SSN or PTIN and the company’s FEIN in the spaces

provided on the return.

INSTRUCTIONS FOR PA SCHEDULE NRC-AE-1

PA Nonresident Schedule of Apportioned Compensation and PA Tax Withheld

On the PA Schedule NRC-AE-1, complete the pertinent information for each nonresident individual

whether or not they elect to participate in the filing of the PA-40 NRC-AE. A separate schedule is

required for every nonresident individual. This form is required for all entries of information and taxpayer

data. Substitute forms or formats are not acceptable.

Enter the following Information:

a. Enter the entity’s FEIN and name. Input for the name of the entity is limited to 50 spaces

(including spaces).

b. Enter the Social Security Number, last name, first name, middle initial, and mailing address

where the taxpayer can be reached for each nonresident individual who performs services in

PA whether or not that individual elects to participate in the filing of this PA-40 NRC-AE.

c. Enter the nonresident individual’s U.S. Postal Service two-digit residency state abbreviation.

If a nonresident individual’s residency state is different from their mailing address state,

please be sure to include the correct U.S. Postal Service residency state abbreviation.

d. Fill in the oval if the nonresident individual is a resident of a reciprocal state. No additional

entries of information are required on this form if the oval is filled in.

e. Enter the total number of working days in PA as determined from the following instructions:

Players

Compensation paid to nonresident players will be apportioned on the basis of

“working days” pursuant to Personal Income Tax regulations (61 Pa. Code § 113.2),

except that a working day shall include a Saturday, Sunday or holiday upon which

the Player must engage in services in the context of a game, practice, training, or

promotional activities for the Team, but shall not include absence due to illness,

injury, vacation or leave without pay. In the event that a player is required to engage

in rehabilitation or other treatment aimed at furthering the Team’s purpose, a day

attributable to this activity by the player can be counted as a “working day.” A

Pennsylvania “working day” means and includes a day when a nonresident player or

non-player personnel who would ordinarily travel with his Team to Pennsylvania to

perform services but remains outside Pennsylvania solely for his own convenience

and not out of business necessity of the Team. Additionally, on a day when the

player either travels from a point outside this Commonwealth to a place within the

Commonwealth or departs from this Commonwealth, it is a “Pennsylvania working

day” if the player does any of the following in Pennsylvania: plays in a game, attends

practice, training, a Team meeting, engages in rehabilitation or other activity aimed at

furthering the sports Team’s objective.

Compensation paid to nonresident players shall be allocated to Pennsylvania on the

basis of a single apportionment fraction, the numerator of which is the number of

Pennsylvania working days employed in Pennsylvania, and the denominator of which

is the total number of working days during the taxable year. Where the

compensation paid or the number of duty days in a particular period is not

representative of the year as a whole, the League and Team can use a reasonable

alternative allocation method to eliminate the distortion as may be approved by the

Department. However, only under extraordinary circumstances will the Department

approve different methods for different players.

Instructions For Form Pa-40 Nrc-Ae - Consolidated Personal Income Tax Return Page 4

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