Form Rev-415 As - Employer Withholding Information Guide Page 12
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24Reciprocal Tax Agreements
The Commonwealth of Pennsylvania has reciprocal tax agree-
ments with Indiana, Maryland, New Jersey, Ohio, Virginia and
West Virginia. These agreements provide that:
1. If a Pennsylvania resident employee receives compensation
for services performed in one of these six states, the
employer in that state withholds the Pennsylvania personal
income tax from compensation received and remits that
tax to Pennsylvania.
2. If a nonresident employee from one of these states
receives compensation for services performed within
Pennsylvania, no withholding of Pennsylvania personal
income tax is required provided an Employee’s Non-
Withholding Application Certificate (REV-419 EX) is filed
by the nonresident employee with the Pennsylvania
employer. The Pennsylvania employer withholds the
income tax of the state in which the nonresident employee
resides and pays the tax to that state.
CALCULATION OF WITHHOLDING
For each payroll period, an employer must calculate the tax to
be withheld from an employee’s compensation by multiplying
such compensation subject to withholding by the current per-
centage rate, which can be found by visiting the department’s
Online Customer Service Center at A
payroll period is a period for which a payment of compensation
ordinarily is made to an employee by his employer, and payroll
periods may be daily, weekly, semiweekly, semimonthly,
monthly, quarterly, semi-annually or annually. If an employee
receives supplemental or other compensation, an employer
must determine the tax to withhold by adding the supple-
mental or other compensation for the current payroll period
and multiplying this amount by the withholding rate.
PAYMENT OF TAXES WITHHELD
Every employer withholding tax must pay the tax required to
be deducted and withheld for each quarter to the department
on a quarterly, monthly, semimonthly or semiweekly basis.
The payment schedule is determined as follows:
1. Quarterly: If the aggregate amount required to be
deducted and withheld for each quarterly period reasonably
can be expected to be less than $300, the employer must
remit the tax quarterly on or before the last day of April,
July, October and January for the four quarters ending the
last day of March, June, September and December.
2. Monthly: If the aggregate amount required to be deducted
and withheld for each quarterly period reasonably can be
expected to be $300 or more, but less than $1,000, the
employer must remit the tax monthly on or before the
15th day of the succeeding month for January to
November and on or before Jan. 31 for the month of
December.
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