Form Rev-414 - Individuals Worksheet - Pa Department Of Revenue (Page 5 of 10) in pdf

REV-413(P/S) EX (07-16)

PA DEPARTMENT OF REVENUE

InstructIons for WIthholdIng PA PersonAl

Income tAx from nonresIdent oWners by

PArtnershIPs And PA s corPorAtIons

PART 1. GENERAL INSTRUCTIONS

FINAL CATCH-UP PAYMENT OF NONRESIDENT WITHHOLDING

If the tax of the nonresident owners exceeds the nonresident quar-

Partnerships and PA S corporations with taxable PA-source income are:

terly withholding tax payments, the partnership or PA S corporation

• Jointly liable with their nonresident partners and shareholders for

must pay the deficiency by the date prescribed for filing the entity's

payment of tax on such income to the extent allocable to the

PA-20S/PA-65 Information Return.

nonresidents; and

When submitting the final nonresident withholding (catch-up)

• Authorized and required to withhold such tax from their nonresident

payment for nonresident owners that are individuals, estates, or

owners and remit the tax to Pennsylvania.

trusts, print the entity's federal employer identification number

The imposition of the tax against the partnership or PA S corporation

(FEIN) and 2017 Final Nonresident Withholding on the check or

does not change the filing requirements or the tax liability of its

money order made payable to the PA Dept. of Revenue.

nonresident owners.

When using approved software, you must include the 2017

The nonresidents take credit for the tax withheld on their annual

Nonresident Withholding Payment substitute voucher with a check

returns and treat their income from the partnership or PA S corporation

or money order and submit with the PA-20S/PA-65 Information

as income subject to withholding in calculating any other personal

Return, PA-40 NRC or extension request.

estimated taxes. The nonresidents may not deduct their personal

Fed/State e-File

estimated tax payments from the tax imposed on the partnership or

The final nonresident withholding (catch-up) payment can only

PA S corporation.

be filed electronically when submitted with the return. Visit

NONRESIDENT PARTNER OR SHAREHOLDER

for more information.

The terms nonresident partner and nonresident PA S corporation

COLLECTION OF NONRESIDENT WITHHOLDING

shareholder include only owners that are nonresident individuals,

If the partnership or PA S corporation maintains a drawing account

nonresident inter vivos or testamentary trusts or nonresident

for, or makes distributions or guaranteed payments to its nonresi-

decedents' estates.

dent partner or shareholder and the withdrawals or distributions are

The entity may rely on its business records to determine the identity,

sufficient to cover the tax withheld, Pennsylvania law authorizes and

the place of residence and the distributive share of income and losses

requires the entity to deduct the tax from the drawing account or

of each partner or shareholder. The entity may rely on such records,

distribution when credited. Otherwise, the time and manner of

collection of the tax withheld shall be a matter of settlement between

unless and until the entity receives a notice furnished under federal

the partnership or PA S corporation and its partners or shareholders.

temporary regulation § 1.6031(c)-1t.

PART 3. STATEMENT OF NONRESIDENT WITHHOLDING

PART 2. PAYMENT OF NONRESIDENT WITHHOLDING

Each entity with income from sources within Pennsylvania must pro-

All partnerships and PA S corporations must collect and pay

vide each of its nonresident owners with a PA-20S/PA-65 Schedule

nonresident quarterly withholding tax. Use Part A and Part B of the

NRK-1 showing the owner’s income (losses), credits and tax withheld.

REV-414(P/S), PA Nonresident Withholding Tax Worksheet for

Partnerships and PA S Corporations to figure the correct amount of

PART 4. FORMS COMPLETION INSTRUCTIONS

2017 nonresident quarterly withholding tax. If the aggregate 2017

Use the REV-414 (P/S), PA Nonresident Tax Withholding Worksheet

nonresident quarterly withholding tax will be less than $500, the

for Partnerships and PA S Corporations, to determine the nonresident

entity must pay within 30 days of the close of the taxable year.

quarterly withholding amount. Use the PA-40ES (P/S) pre-printed

If the aggregate 2017 nonresident quarterly withholding tax will be

form from the department or PA-40ESR (F/C), Declaration of

$500 or more, the entity may either pay all of the nonresident tax

Estimated or Estimated Withholding Tax for Fiduciaries & Partnerships,

tax forms to pay the 2017 nonresident quarterly withholding.

with the first payment or pay in installments when due. Use this table

to determine the amount and due date for each installment of

Use Part A and Part B of the REV-414(P/S), PA Nonresident Tax

nonresident tax. If the due date falls on a Saturday, Sunday or legal

Withholding Worksheet for Partnerships and PA S Corporations, to

holiday, the due date is the next business workday. Interest on under-

figure the correct amount of 2017 nonresident quarterly withholding

payments of nonresident quarterly withholding tax shall run from the

to pay. Use Part C to keep a record of nonresident quarterly

due date to the 30th day following the close of the taxable year.

withholding payments made and the amount of remaining

The entity should pay the following percentages of the withholding by the date shown or the

next business day if the due date falls on a Saturday, Sunday or holiday.

If the entity can reasonably determine

The required number

that its aggregate nonresident

of withholding

withholding will exceed $500 for the

installments is:

By the 15th day

taxable year:

By the 15th day

of the 1st month

of the 4th month

of the 7th month

of the 10th month

after the close of

the tax year

Before the 1st day of the 4th month

25%

After the last day of the 3rd month-

50%

25%

before the 1st of the 7th month

After the last day of the 6th month-

75%

25%

before the 1st of the 10th month

After the last day of the 9th month

100%

07 PDR 105018

Form Rev-414 - Individuals Worksheet - Pa Department Of Revenue Page 5

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