Table Of Contents

Instructions for Completing the Employer Deposit Statement (Form PA-501) Employer Withholding Tax

Line 1 - Gross Compensation:

Enter the amount of compensation subject to PA Withholding tax for the deposit period.

Line 2 - PA Withholding Tax:

Enter the amount of PA Personal Income Tax required to be withheld (or actually withheld, if higher) for the deposit period.

Line 3 - Credits:

Enter the amount of credit for a previous overpayment which is being applied to withholding tax for this deposit period.

Line 4 - Interest:

Interest on late payments is computed daily from the due date until the date paid. Interest is computed by multiplying the late period or unpaid tax multiplied by the days delinquent multiplied by the daily interest rate. The daily interest rate = annual interest rate 365 days. (Note: With the exception of the last period, the annual interest rate is noted on the coupons.)

Payment:

Enter the amount of the payment being remitted for this deposit period. The payment should equal the withholding tax (Line 2) less credits (Line 3) plus Interest (Line 4).