New 1099 Tax Requirements in PA, Maryland Sick & Safety Leave Update

Below are a few recent and important updates to be aware of:

New 1099 Tax Requirements in PA

Pennsylvania has issued a new personal income tax withholding requirement alongside filing Form 1099.

Here’s what it means for PA businesses: Effective January 1, 2018, PA businesses who pay non-employees who do not live in PA (such as out-of-state contractors) $5000 or more per year, are now required to withhold a 3.07% personal income tax on each payment.

  • If a PA business is unsure of the total amount of payments that will be paid to non-employees who do not live in PA, it is recommended that the business withhold and remit personal income tax from all payments made to the out of state non-employee.
  • Failure of a payor to withhold and remit the required amount of personal income tax will result in the payor becoming liable for the personal income tax it failed to properly withhold, plus interest and penalties.

For FAQs and to learn more, click here to download the official PA Department of Revenue documentation. You can also view the latest informational notice here.

We can answer questions about these new requirements, help you stay compliant, and even keep track of these new taxes for you. Get in touch with us here:

Maryland Sick and Safety Leave Update

Effective February 11, 2018, the Maryland Healthy Working Families Act requires employers with 15 or more employees to provide up to 40 hours of paid sick and safe leave to employees each year, while employers with less than 15 employees must provide up to 40 hours of unpaid sick and safe leave annually.

An employee accrues earned sick and safe leave at a rate of at least one hour for every 30 hours the employee works. But an employee is not entitled to earn more than 40 hours of earned sick and safe leave in a year or accrue more than 64 hours of earned sick and safe leave at any time.

To learn more, check out this information from the Maryland Department of Labor, Licensing & Regulation.

Recommended Posts