Only companies with fewer than 10 employees are exempt
The Pennsylvania Independent Regulatory Review Commission (IRRC) recently approved a regulation from the PA Department of Revenue requiring employers that file ten or more employee withholding statements to transmit the data electronically to the Department.
The final regulation changes the method of filing for employers with 10 to 249 employees. Employers with 250 or more employees are already required to file withholding statements online. The Department proposed the rule to improve the efficiency and accuracy of its tax system by further automating the reporting of tax information.
According to the Department’s data, about 86,500 small business employers will be affected by the change, which requires them to file annual withholding reconciliation statements and withholding statements electronically instead of sending the forms in the mail.
The Department considered the effect on small businesses and decided to exempt employers with nine or fewer employees. Employers affected by the new rule will be required to access the Department’s e-TIDES system on the Internet to file. No new software is required.