Cargo Van Non resident PA tax.

[Pro3500]

Anyone paid this yet?
Please be aware that Pennsylvania law now requires a withholding of 3.075 percent on non-wage Pennsylvania sourced income payments made to nonresident Pennsylvania contractors or disregarded entities/single-member LLCs who operate vehicles with a GVW below 10,001 pounds. Pennsylvania sourced income includes income from shipments with a pickup and/or delivery in the state.

The withholding tax will apply when an owner has exceeded $5,000 of sourced income in a calendar year. After you hit the $5,001 threshold, all Pennsylvania sourced income to follow will also be subject to the withholding tax.

 

[Grizzly]

Anyone paid this yet?
Please be aware that Pennsylvania law now requires a withholding of 3.075 percent on non-wage Pennsylvania sourced income payments made to nonresident Pennsylvania contractors or disregarded entities/single-member LLCs who operate vehicles with a GVW below 10,001 pounds. Pennsylvania sourced income includes income from shipments with a pickup and/or delivery in the state.

The withholding tax will apply when an owner has exceeded $5,000 of sourced income in a calendar year. After you hit the $5,001 threshold, all Pennsylvania sourced income to follow will also be subject to the withholding tax.

Can you provide a reference? Where are you seeing this?

How is this going to be enforced? So many regs not being followed by the under 10K lbs crowd, add this to the pile ...

 

[Turtle]

It's been in effect for like 20 years and I never heard of anyone in expediting having to pay it.

Nonresident Withholding

www.revenue.pa.gov

 

[Pro3500]

Fedex took monies from my settlement check for it. Just seems this a tax they should be paying not me. This should be passed on to the shippers and consignees in PA. Just keep chiseling away.

 

[Turtle]

Interesting. I guess with FedEx having such a large physical presence in the states is makes them subject to it.

 

[beachbum]

Can you provide a reference? Where are you seeing this?

How is this going to be enforced? So many regs not being followed by the under 10K lbs crowd, add this to the pile ...

Like what regs are the under 10k lbs aren’t we following? Going to love this one

 

[Grizzly]

Like what regs are the under 10k lbs aren’t we following? Going to love this one

How's insurance compliance for starters?
Apologies, we just took a hard left turn on this thread ...

 

[FlyingVan]

Landstar also collects a tax (I believe they call it ad valorem tax, or something like that) on all their vehicles, including the under 10k vehicles for every mile driven in 3 states, I believe TN, AR and KS. I'm only pointing this out because companies can and will collect anything they want even for under 10k vehicles.

I love working with smaller companies. Not that much crap going around.

 

[Worn Out Manager]

Yes, the tax is real and there may be more larger companies collecting. But for small guys, the checks are coming from brokers all over the country, in my case all to an Ohio carrier. My 1099 comes from OH and goes to NJ.

Sent from my moto z3 using EO Forums mobile app