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PA DOR Act 43 rules for Non-resident 1099-MISC Withholding requirements
Is there a PeopleSoft delivered solution that can be leveraged to comply with the new PA Act 43 withholding rule?
Assuming there is not a delivered solution, has anyone implemented an enhancement that meets the requirement?
We had the same question back in January and I
spent several weeks arguing with Oracle. They stand firm on stating
they do not support local and state taxes. So, that being said we
were able to leverage the withholding functionality to meet this
requirement.
What we did was create a new withholding rule,
type, jurisdiction, BU category, supplier category, and withholding
entity. We then added the new entity to the procurement control
page and to the specific suppliers. We set our PA supplier with the
WH location to hold payments, so the individual payments would only
get picked up when we want to send in one combined payment. This
seems to be working so far (except when the PA supplier was taken
off hold and not put back on). One issue we are going to have is at
year end the only way to get the payments on the suppliers 1099 is
to manually populate the field on the 1099 withholding row on the
supplier location. We have talked about possibly doing a
customization to auto-populate every year because once the 1099s
are complete, you have to also remember to remove/replace for the
next year.
Let me know if you have any questions. My
contact info is below.
Alicia
Kinsey
Manager, Financial Business
Systems
KAR Auction
Services, Inc.
13085 Hamilton Crossing
Blvd.
Carmel, Indiana 46032
Phone: 317-843-4760