Instructions For Form Pa-40 Nrc-Ae - Consolidated Personal Income Tax Return (Page 5 of 9) in pdf

A Team may, at its option, determine apportioned income using the same number of

total working days for all players irrespective of whether a particular player is with the

Team for an entire quarter or taxable year of such individual. If the Team’s use of

this method of determining apportioned income for a particular individual results in

tax withheld that does not correspond to the compensation subject to withholding, the

Team should inform the individual that he or she should file his or her own individual

nonresident Pennsylvania income tax return and that he or she may not satisfy his or

her individual filing responsibility by participating in the combined return.

Non-Player Personnel or Entertainers

Compensation paid to nonresident non-player personnel or nonresident entertainers

will be apportioned on the basis of working days per year. Working days are

determined in the same manner as set forth in the player’s paragraphs above. Non-

player personnel includes, without limitation: Team employees - such as coaches,

trainers, and any other persons required to travel with and perform services on behalf

of the Team (which encompasses being present with the Team in the

Commonwealth); game officials; and entertainers.

Enter the total number of working days in the year.

Line 1. Divide the total number of working days in PA by the total number of working days in the

year to arrive at the working days apportionment fraction. Calculate the fraction to six

decimal places.

Line 2. Enter the nonresident individual’s Gross Compensation Before Apportionment for the

tax year.

Compensation

Compensation includes, but is not limited to, salary and wage payments,

performance bonuses, single-year and multi-year signing bonuses (whether

conditioned on the performance of present and/or future services), or any similar

compensation paid to nonresident members of Pennsylvania teams.

Special Rules for Compensation for Prior or Future Services

Compensation for prior services rendered (such as performance bonuses,

commissions, vacation pay, overtime pay, and so forth, attributable at least in part to

services performed in a prior tax year) shall be apportioned to Pennsylvania in

proportion to total number of Pennsylvania working days to the total number of

working days in the payment’s accrual period. Compensation for services to be

rendered shall be apportioned to Pennsylvania (once there is no substantial risk of

forfeiture) in proportion to the total number of Pennsylvania working days to the total

number of working days in the payment’s accrual period. Teams may reasonably

estimate the total working days if the payment’s accrual period is more than one year.

Line 3. Multiply Line 2, Gross Compensation Before Apportionment, by Line 1, Apportionment

Fraction, and enter the amount here.

Line 4. Enter the amount of PA Tax Withheld for the nonresident individual.

Mailing Instructions

Mail the completed PA-40 NRC-AE and accompanying PA Schedules NRC-AE-1 to:

PA Department of Revenue

PO Box 280600

Harrisburg, PA 17128-0600

When to file

Mail the completed PA-40 NRC-AE, accompanying PA Schedules NRC-AE-1, and any tax due to the

Department no later midnight, April 17, 2007, unless an extension of time to file is obtained using the

procedure found on Page 6.

Instructions For Form Pa-40 Nrc-Ae - Consolidated Personal Income Tax Return Page 5

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