Pennsylvania PA Schedule NRH - Compensation Apportionment
Extracted from PDF file 2023-pennsylvania-form-pa-40-nrh.pdf, last modified November 2012PA Schedule NRH - Compensation Apportionment
PA SCHEDULE NRH 2303710053 Non-Resident Apportionment START ➜ PA-40 NRH (EX) 01-24 (FI) PA Department of Revenue 20 OFFICIAL USE ONLY NAME AS SHOWN ON YOUR PA RETURN: SOCIAL SECURITY NUMBER: Enter the name, address and employer identification number of your employer. A separate PA Schedule NRH must be completed for each employer. EMPLOYER’S NAME EMPLOYER’S IDENTIFICATION NUMBER EMPLOYER’S ADDRESS CITY STATE SECTION I ZIP CODE APPORTIONMENT METHODS You must use the business-volume basis when your income depends directly on the amount of business earned or received when in Pennsylvania. Otherwise, use the working-day basis. You may not use both methods in determining apportionment. PART A. WORKING-DAY BASIS (Use only if Business-Volume Basis cannot be used). 1. Total number of days in the tax year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. Total number of nonworking days 1. a. Saturdays, Sundays and holidays (if no work is performed on these days) . . . . . . . . . . . . .a. b. Sick, illness or disability days . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .b. c. Vacation or leave days, with or without pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .c. Total number of nonworking days (Add a, b and c and enter on Line 2.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 3. Total number of days worked in the tax year (Subtract Line 2 from Line 1.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 4. Total number of days worked within Pennsylvania during the tax year (See the instructions.) . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 5. Working-days apportionment fraction (Divide Line 4 by Line 3. Calculate to at least six decimal places.) . . . . . . . . . . . . . . . . . 5. . PART B. BUSINESS-VOLUME BASIS 6. Total volume of business transacted during the tax year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. 7. Total volume of business transacted directly due to activity in Pennsylvania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. 8. Business-volume apportionment fraction (Divide Line 7 by Line 6. Calculate to at least six decimal places.) . . . . . . . . . . . . . . 8. . APPORTIONED COMPENSATION AND/OR EMPLOYEE BUSINESS EXPENSES PART C. PA GROSS-TAXABLE COMPENSATION If the Form W-2 provided by your employer did not show the amount of PA gross-taxable compensation you earned or received in Pennsylvania, or if the amount shown as PA gross-taxable compensation is incorrect, you must apportion the amount on Line 9. If your employer properly reported your PA gross-taxable compensation on your Form W-2, do not complete this part. 9. Gross-taxable compensation from Form W-2 or pay stubs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. 10. Working-days apportionment percentage from Line 5 in Part A above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. 11. Business-volume apportionment percentage from Line 8 in Part B above (Use the percentage from Line 5 or Line 8, but not both.) . . . . 11. 12. Apportioned PA gross-taxable compensation (Multiply Line 9 by either Line 10 or Line 11.) Enter on Line 1A of your PA-40. . 12. . . If you did not incur any allowable employee business expenses, include the amount from Line 12 on Line 1c of your PA-40. If you did incur allowable employee business expenses, you must complete Part D. PART D. ALLOWABLE EMPLOYEE BUSINESS EXPENSES In order to apportion your business expenses for PA purposes, you must complete PA Schedule UE, Allowable Employee Business Expenses. Do not include any expenses on PA Schedule UE which are not allowable under PA law. Read the instructions carefully. 13. Total allowable expenses from PA Schedule UE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13. 14. Working-day apportionment percentage from Line 5 in Part A above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14. 15. Business-volume apportionment percentage from Line 8 in Part B above (Use the percentage from either Line 5 or Line 8, but not both.) . . 15. 16. Apportioned PA-allowable employee business expenses (Multiply Line 13 by Line 14 or Line 15.) Enter on Line 1B of your PA-40. . 16. . . PART E. PA-TAXABLE COMPENSATION If you completed Part C, enter the amount from Line 12 on Line 18.You should not have amounts on both Line 17 and Line 18 unless you received more than one Form W-2 from the same employer. On Line 19, enter any reimbursements for expenses that you received, but not included in your Form W-2. 17. Correct PA gross-taxable compensation from Form W-2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17. 18. Apportioned PA gross-taxable compensation from Part C, Line 12 above (Enter on Line 1A of your PA-40.) . . . . . . . . . . . . . 18. 19. Apportioned reimbursements for expenses not included in your Form W-2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19. 20. Total PA gross-taxable compensation (Add Line 17 and/or Line 18 to Line 19.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20. 21. Apportioned PA employee business expenses from Part D, Line 16 above (Enter on Line 1B of your PA-40.) . . . . . . . . . . . . 21. 22. Net taxable/apportioned PA gross-taxable compensation (Subtract Line 21 from Line 20.) . . . . . . . . . . . . . . . . . . . . . . . . . . . 22. Include the amount from Line 22 on Line 1c of your PA-40. Enclose a copy of this PA Schedule NRH, your completed PA Schedule UE, your form(s) W-2 and your employer letter verifying working days outside Pennsylvania with your PA-40. 2303710053 Reset Entire Form 2303710053 NEXT PAGE PRINT FORM 2303810051 PA SCHEDULE NRH Non-Resident Apportionment START ➜ PA-40 NRH (EX) 01-24 (FI) PA Department of Revenue 20 OFFICIAL USE ONLY NAME AS SHOWN ON YOUR PA RETURN SECTION II SOCIAL SECURITY NUMBER CALCULATION OF PENNSYLVANIA NET PROFITS FROM BUSINESS, PROFESSION OR FARM INCOME If your business, profession or farm income is derived from sources within and outside Pennsylvania and your accounts and records do not clearly reflect the income from within Pennsylvania, complete Section II of this schedule and enclose it with your PA-40. NET PROFITS FROM BUSINESS OR FARM APPORTIONMENT FORMULA Federal Employer Identification Number List all places within and outside Pennsylvania where you operate your business. (1) STREET ADDRESS (2) CITY AND STATE (A) TOTAL EVERYWHERE DESCRIPTION OF ITEMS USED AS FACTORS (B) WITHIN PENNSYLVANIA (3) TYPE OF BUSINESS (C) DIVIDE (B) BY (A) TO OBTAIN DECIMAL – CARRY TO AT LEAST SIX PLACES 1. Real estate and tangible property $ $ 1. . 2. Wages, salaries, commissions and other compensation $ $ 2. . 3. Sales $ $ 3. . 4. Total (Add Line 1 through Line 3 for column C.) 4. . 5. Allocating fraction (express in decimal). Divide Line 4 by 3. If only two of the above factors apply, divide by 2. If only one applies, enter figure from Line 4. 5. . 6. Total net profits from business, profession or farm income for the tax period. 6. $ 7. Net profits from business, profession or farm allocated to Pennsylvania. (Multiply Line 6 by Line 5.) Enter here and include in Line 4 of PA-40. 7. $ 2303810051 Reset Entire Form RETURN TO PAGE ONE 2303810051 PRINT FORM Instructions for PA-40 Schedule NRH Non-Resident Apportionment PA-40 NRH IN (EX) 01-24 WHAT’S NEW Section I, Line 4 and Section I, Line 7 instructions have been updated to include a requirement to include a signed statement from an employer to verify working days or the amount earned while working outside Pennsylvania. WHO MUST USE PA SCHEDULE NRH? A nonresident employee who performs services within and outside Pennsylvania is subject to PA personal income tax only on the net compensation for services performed within Pennsylvania. Your employer should report your PA grosstaxable compensation in the “state” (PA) box on your Federal form W-2, Wage and Tax Statement. If your employer(s) did not report your PA wages, you must complete and submit a PA Schedule NRH. You must fill out this schedule for each employer that: a. Did not report your PA gross-taxable compensation on your Form W-2; or b. Reported an incorrect amount as PA gross-taxable compensation on your Form W-2; or c. You incurred unreimbursed employee business expenses in earning or receiving PA gross-taxable compensation. You must complete Section I of this schedule and submit it with your PA-40. If your employer properly reported the amount of your PA gross-taxable compensation on your Form W-2, and you did not incur unreimbursed employee business expenses, you do not need to complete this schedule. Section I provides two methods of apportioning your PA gross-taxable compensation and your unreimbursed employee business expenses. Part A. Working-Day Basis. If your compensation depends directly on the number of days you performed services in Pennsylvania, use this part. Part B. Business-Volume Basis. If your compensation depends on the amount of business transacted from the services you performed in Pennsylvania, use this part. YOU MAY NOT USE BOTH METHODS. Use the percentage you calculated and apply it to your PA gross-taxable compensation and your allowable PA unreimbursed employee business expenses. www.revenue.pa.gov PREVIOUS PAGE Section II of PA Schedule NRH is for apportioning income from a business, profession or farm. If you derived your business, profession or farm income from sources within and outside Pennsylvania and your accounts and records accurately reflect income from within Pennsylvania, you must report your PA-taxable income based upon your accounts or records. If you derived your business or farm income from sources within and outside Pennsylvania and your accounts and records do not clearly reflect income from within Pennsylvania, complete Section II of PA Schedule NRH to determine your PA-source business or farm income. In Section II, you calculate a decimal figure that you apply to your total net profit from business or farming. The decimal figure is an average of the sum of three fractions: tangible property; wages, salaries and commissions; and sales. LINE INSTRUCTIONS SECTION I APPORTIONMENT METHODS PART A WORKING-DAY BASIS LINE 1 Report the total number of days in the taxable year you worked for your employer. For example, a complete year would be 365 days. LINE 2 Enter the total number of nonworking days during the taxable year. Nonworking days include weekends and holidays, as long as no work is performed on those days, as well as vacation days, sick days, leaves of absence due to illness or disability and days working for other employers or yourself. LINE 3 Subtract Line 2 from Line 1 to determine your working days during the taxable year. LINE 4 Report the total number of days you performed services or worked within Pennsylvania. PA-40 NRH NEXT PAGE 1 NOTE: You are deemed to have worked outside Pennsylvania if your employer required you to perform your job duties outside Pennsylvania. If you work outside Pennsylvania for your own personal convenience or for tax purposes, such work days are to be included in the total for this line. IMPORTANT: To avoid delays in the processing of your return, a signed statement from your employer must be submitted with Schedule NRH that includes the number of days worked outside of Pennsylvania to verify the information reported on this schedule. NOTE: You must explain the reason you feel the amount on your Form W-2 is incorrect in a separate statement with this schedule. LINE 10 If you used the working-day apportionment method, enter the percentage from Line 5. LINE 11 If you used the business-volume apportionment method, enter the percentage from Line 8. LINE 5 LINE 12 Calculate your apportionment fraction for days worked in Pennsylvania by dividing Line 4 by Line 3. Calculate to six decimal places. Calculate your apportioned PA gross-taxable compensation by multiplying Line 9 by either Line 10 or Line 11. PART B BUSINESS-VOLUME BASIS LINE 6 Report the total amount of business you transacted for your employer within and outside Pennsylvania during the taxable year. LINE 7 Report the total amount of business you transacted for your employer based on the services you performed within Pennsylvania during the taxable year. NOTE: If the services you performed in Pennsylvania directly resulted in business transactions outside Pennsylvania, include such business in the total for this line. IMPORTANT: To avoid delays in the processing of your return, a signed statement from your employer must be submitted with Schedule NRH that provides the actual amount earned while working outside Pennsylvania to verify the information reported on this schedule. LINE 8 Calculate your apportionment fraction for business volume directly related to your services performed in Pennsylvania by dividing Line 7 by Line 6. Calculate to six decimal places. PART C PA GROSS-TAXABLE COMPENSATION LINE 9 From your Form W-2, enter your gross compensation if your employer failed to separately report your PA earnings (or the correct amount of PA-taxable compensation). 2 PA-40 NRH PREVIOUS PAGE Follow the instructions in Part C to transfer the amount from Line 12 to Line 1c of your PA-40 or to Part E. PART D ALLOWABLE EMPLOYEE BUSINESS EXPENSES LINE 13 Report the amount of your total unreimbursed employee business expenses from PA Schedule UE. These expenses include those you incurred within and outside Pennsylvania in performing the services for your employer. LINE 14 If you used the working-day apportionment method, enter the percentage from Line 5. LINE 15 If you used the business-volume apportionment method, enter the percentage from Line 8. LINE 16 Calculate your apportioned unreimbursed employee business expenses by multiplying Line 13 by either Line 14 or Line 15. If you complete Part D, you must complete Part E. PART E PA-TAXABLE COMPENSATION LINE 17 If your employer used the correct PA gross-taxable compensation amount on your Form W-2, enter that amount. LINE 18 If you apportioned your PA gross-taxable compensation, enter the amount from Part C, Line 12. www.revenue.pa.gov NEXT PAGE LINE 19 If your employer reimbursed you for some of your expenses, but not in the exact amount or on a per diem basis, and that reimbursement is not already included in your form W-2, enter the amount of your reimbursements multiplied by the percentage from Line 5 or Line 8 on this line. LINE 20 Add all completed lines above and enter the total here. This is your apportioned PA gross-taxable compensation. LINE 21 Enter the amount of your apportioned unreimbursed employee business expenses from Part D, Line 16. LINE 22 Subtract Line 21 from Line 20. This is your net PA-taxable compensation. Transfer this amount to Line 1c of your PA-40 and include it with any other PA-taxable compensation. SECTION II CALCULATION OF PENNSYLVANIA NET PROFITS FROM BUSINESS, PROFESSION OR FARM INCOME List all places within and outside Pennsylvania where you operate your business, giving the street address, city and state. Also indicate the type of business. LINE 1 Real Estate and Tangible Property In Column (A), TOTAL EVERYWHERE, enter the average value of the real and tangible personal property you owned or rented and used in your trade or business within and outside Pennsylvania. In Column (B), WITHIN PENNSYLVANIA, enter the average value of the real and tangible personal property you owned or rented and used in your trade or business in Pennsylvania. In Column (C), enter the decimal figure which results from dividing the dollar amount in Column (B) by the dollar amount in Column (A). Property you owned is valued at its original cost with no allowance for depreciation. The average value is determined by adding the total value at the beginning of the year to the total value at the end of the year and dividing by two. The department may require averaging of monthly values to reflect the average value of property. Property you rent is valued at eight times the gross annual rental rate. Gross annual rental rate does not include property subleased and not used to carry on the business. LINE 2 Wages, Salaries, Commissions and Other Compensations In Column (A), TOTAL EVERYWHERE, enter total www.revenue.pa.gov PREVIOUS PAGE compensation paid within and outside Pennsylvania during the entire year. In Column (B), WITHIN PENNSYLVANIA, enter total compensation paid in Pennsylvania during the entire year. In Column (C), enter the decimal figure which results from dividing the dollar amount in Column (B) by the dollar amount in Column (A). Compensation is paid in Pennsylvania if: 1. The individual performs service entirely within Pennsylvania; or 2. The individual performs services within and outside Pennsylvania, but the service performed outside Pennsylvania is incidental to the individual’s service performed within Pennsylvania; or 3. Some of the service the individual performs within Pennsylvania, and either the base of operations, or if there is no base of operations, the place from which the service is directed or controlled is within Pennsylvania; or the base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual is a resident of Pennsylvania. Base of operations refers to the place or fixed center from which the individual works. An individual’s base of operations may be a business office or a place at which the employee is to receive directions and instructions if the contract of employment so specifies. In the absence of more controlling factors, an individual’s base of operations may be the place to which business mail, supplies and equipment are sent, or the place where business records are maintained. LINE 3 Sales In Column (A), TOTAL EVERYWHERE, enter your total sales within and outside Pennsylvania during the entire year. In Column (B), WITHIN PENNSYLVANIA, enter your total sales within Pennsylvania during the entire year. In Column (C), enter the decimal figure which results from dividing the dollar amount in Column (B) by the dollar amount in Column (A). Sales of tangible personal property are in Pennsylvania if: (1) The property is delivered or shipped from outside Pennsylvania to a purchaser in Pennsylvania, other than the U.S. government, regardless of the free on board point or other conditions of the sale; or (2) The property is shipped from Pennsylvania to any place and the purchaser is the U.S. government. Sales, other than sales of tangible personal property, are in Pennsylvania if: (1) The income-producing activity is performed in Pennsylvania; or (2) The income-producing activity is performed within and outside Pennsylvania, and the greater proportion of the income-producing activity is performed within Pennsylvania (based on cost or performance). PA-40 NRH NEXT PAGE 3 LINE 4 Add lines 1, 2 and 3. LINE 5 Average - Divide the amount on Line 4 by the number of factors which apply; i.e. the number of entries in Column (A). Example: If you entered amounts only for property and sales in Column (A), you would divide the amount on Line 4 by 2. 4 PA-40 NRH PREVIOUS PAGE LINE 6 Enter the total net profits from business or farm income for the tax year from PA Schedule C or PA Schedule F. LINE 7 Multiply the amount shown on Line 6 by the allocating fraction shown on Line 5. This is the portion of your net profits from business or farm income subject to tax in Pennsylvania. Include the amount in Line 4 of PA-40. www.revenue.pa.gov RETURN TO FORM
PA Schedule NRH - Compensation Apportionment (Form and Instructions) (PA-40 NRH)
More about the Pennsylvania Form PA-40 NRH Individual Income Tax TY 2023
This form requires your employer's information along with the number of days you have worked in Pennsylvania and the total amount of business transacted within that tax year. It also details who is required to fill out this form.
We last updated the PA Schedule NRH - Compensation Apportionment in February 2024, so this is the latest version of Form PA-40 NRH, fully updated for tax year 2023. You can download or print current or past-year PDFs of Form PA-40 NRH directly from TaxFormFinder. You can print other Pennsylvania tax forms here.
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File Now with TurboTaxRelated Pennsylvania Individual Income Tax Forms:
TaxFormFinder has an additional 174 Pennsylvania income tax forms that you may need, plus all federal income tax forms. These related forms may also be needed with the Pennsylvania Form PA-40 NRH.
Form Code | Form Name |
---|---|
Form PA-40 | Pennsylvania Income Tax Return |
Form PA-40 SP | PA Schedule SP - Special Tax Forgiveness |
Form PA-40 A | PA Schedule A - Interest Income |
Form PA-40 PA-V | PA-40 Payment Voucher |
PA-40 ES (Individual) | Declaration of Estimated Personal Income Tax |
PA-40 | Income Tax Return |
Form PA-40 UE | PA Schedule UE - Allowable Employee Business Expenses |
Form PA-40 B | PA Schedule B - Dividend Income |
Form PA-40 ES (P/S/F) | PA-40 ES Partnership, PA S Corporation and Fiduciary - Declaration of Estimated Withholding Tax |
Form PA-40 C | PA Schedule C - Profit or Loss From Business or Profession |
View all 175 Pennsylvania Income Tax Forms
Form Sources:
Pennsylvania usually releases forms for the current tax year between January and April. We last updated Pennsylvania Form PA-40 NRH from the Department of Revenue in February 2024.
About the Individual Income Tax
The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.
Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!
Historical Past-Year Versions of Pennsylvania Form PA-40 NRH
We have a total of thirteen past-year versions of Form PA-40 NRH in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
PA Schedule NRH - Compensation Apportionment (Form and Instructions) (PA-40 NRH)
PA Schedule NRH - Compensation Apportionment (PA-40 NRH)
PA Schedule NRH - Compensation Apportionment (PA-40 NRH)
PA Schedule NRH - Compensation Apportionment (PA-40 NRH)
PA Schedule NRH - Compensation Apportionment (PA-40 NRH)
PA Schedule NRH - Compensation Apportionment (PA-40 NRH)
PA Schedule NRH - Compensation Apportionment (PA-40 NRH)
PA Schedule NRH - Compensation Apportionment (PA-40 NRH)
PA Schedule NRH - Compensation Apportionment (PA-40 NRH)
PA Schedule NRH - Compensation Apportionment (PA-40 NRH)
PA Schedule NRH - Compensation Apportionment (PA-40 NRH)
Schedule NRH (PA-40 NRH)
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