with respect thereto shall be considered the tax of the payor.
All taxes deducted and withheld from payees pursuant to section
316.2 or under color of section 316.2 shall constitute a trust
fund for the Commonwealth and shall be enforceable against such
payor, his representative or any other person receiving any part
of such fund.]
Section 4. Section 321.1 of the act is amended to read:
Section 321.1. Bulk and Auction Sales and Transfers,
Notice.--[(a) An employer] A person that is liable for filing
returns in accordance with the provisions of this part and
either sells or causes to be sold at auction, or sells or
transfers in bulk, fifty-one per cent or more of any stock of
goods, wares or merchandise of any kind, fixtures, machinery,
equipment, buildings or real estate held by or on behalf of the
employer shall be subject to the provisions of section 1403 of
"The Fiscal Code."
Section 5. Section 321.2 of the act is repealed:
[Section 321.2. Payor's Failure to Withhold.--If a payor
fails to deduct and withhold tax as prescribed under section
316.2 and thereafter the tax which may be credited is paid, the
tax which was required to be deducted and withheld shall not be
collected from the payor, but the payor shall not be relieved of
the liability for any penalty, interest or additions to the tax
imposed with respect to such failure to deduct and withhold.]
Section 6. The act is amended by adding a section to read:
Section 323.1. Annual Withholding Return.--A person required
to withhold tax under this part shall file an annual withholding
return in a time and in such manner as the department may
prescribe showing the total payments subject to withholding and
the total amount of tax deducted, withheld and remitted.
Section 7. Sections 324.1 and 324.2 of the act, amended
October 30, 2017 (P.L.672, No.43), are amended to read:
Section 324.1. Amount of Withholding Tax.--(a) The amount
of tax withheld [from nonresidents and the amount of the
withholding tax payable] under section 324 shall be equal to the
income from sources within this Commonwealth of the partnership,
association or Pennsylvania S corporation which is allocable to
nonresident partners, members or shareholders multiplied by the
tax rate specified in section 302(b).
(b) There shall not be taken into account any item of
income, gain, loss or deduction to the extent allocable to any
partner, member or shareholder who is not a nonresident.
[(c) There shall not be taken into account any share of
income of nonresident partner, member or shareholder from
sources within this Commonwealth to the extent that the amount
was subject to withholding under section 324.4 and to the extent
withholding actually occurred under section 324.4 by the time
withholding is required to be made by the partnership,
association or Pennsylvania S corporation under section 324.]
Section 324.2. Treatment of Nonresident Partners, Members or
Shareholders.--[(a)] Each nonresident partner, member,
2018/90AJM/HB2413A09950 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51