Hibou Odoo Suite Enterprise: State of Pennsylvania: Filing State Income Taxes, W2s, and 1099s


Purpose

    The purpose of this documentation is to outline the processes and requirements associated with filing state income taxes as well as how to file W-2s and 1099s, if needed, in the state of Pennsylvania.

    State Income Tax Withholding 

    Pennsylvania does not have a form exactly like the federal W-4 form because Pennsylvania Personal Income Tax is based on a flat tax rate and everyone pays the same rate of 3.07%. Pennsylvania does not have allowances based on the number of dependents claimed, marital status, age, etc.  

    An employee may, however, be entitled to non-withholding of PA personal income tax if they incurred no liability for income tax the preceding tax year and/or they anticipate that they will incur no liability for income tax during the current tax year or as a resident of the reciprocal states of Indiana, Maryland, New Jersey, Ohio, Virginia, or West Virginia and their employer agrees to withhold the income tax from that state. 

    If the employee meets these criteria they should complete Form REV-419 and submit it to their employer's payroll office along with any required documentation.

    State Income Tax Withholding Reporting and Deposits

    Deposits

    Employers currently withhold and remit employees’ taxes on wage and salary income according to the following schedule:

    ScheduleWithholding Amount per QuarterDue Date
    Quarterly$0 - $299The last day of the month following that quarter. 
    Monthly$300 - $99915th day of the following month.
    Semi-Monthly$1,000 - $4,999.99 per quarterWithin 3 banking days of the close of the semi-monthly period.
    Semi-Weekly
    $5,000 or greater per quarter
    ($20,000 per year)
    The Wednesday following the pay dates for employers whose paydays fall on a Wednesday, Thursday or Friday; and on the Friday following the pay dates for employers whose paydays fall on Saturday, Sunday, Monday or Tuesday.

    Reporting

    PA W-3 quarterly reconciliation returns must be filed online at e-Tides or by phone using TeleFile (1-800-748-8299).

    Every employer required to deduct and withhold tax must file a quarterly return of income tax withheld on or before the last day of the month following the end of the quarter.  

    QuarterMonths in QuarterDue Date
    1st QuarterJanuary - MarchApril 30th
    2nd QuarterApril - JuneJuly 30th
    3rd QuarterJuly - SeptemberOctober 31st
    4th QuarterOctober - DecemberJanuary 31st

    Employers that remit withheld taxes on a monthly, semi-monthly, or semi-weekly schedule must file the quarterly reconciliation return, PA W-3.

    W-2 and 1099 Forms

    W-2 and 1099 forms are due to the Department by January 31st of the ensuing tax year and they must be accompanied by an Annual Withholding Reconciliation Statement (REV-1667).

    Number of filingsFiling method
    Filing 10 or More W-2s and or 1099s.Electronically at e-Tides
    Filing Fewer than 10 1099s
     - Electronically at e-Tides or
     - Paper
    Filing Fewer than 10 W-2s
     - Electronically at e-Tides or
     - Telefile 1-800-748-8299 or
     - Paper

    For further details, see the Pennsylvania Department of Revenue 2018 W-2 and 1099 Employer Withholding Reporting Instructions and Specifications Handbook and Employer Withholding Information Guide