Does my Texas-based business have to file a Pennsylvania return for employees who live in Pennsylvania?

by Scott Rubinsky, CPA | Mar 13, 2018

I own a business based in Texas. I have one employee and one contractor who live in Pennsylvania. They work remotely in nonsales positions. I pay Pennsylvania employment taxes on the employee. Does my company have to file a tax return in Pennsylvania also?

The company will not have to file Pennsylvania returns as long as it is not soliciting in Pennsylvania, no products and services are provided there, and no products are shipped into the state.

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Answered by: Scott Rubinsky, CPA, is a sole practitioner in Huntingdon Valley, Pa.

The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
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