§ 153.25. Payroll factor.
(a) General. The payroll factor is a fraction, the numerator of which is the total amount of compensation paid in this Commonwealth during the tax period by the taxpayer to its employes and the denominator of which is the total amount of compensation paid everywhere during the tax period by the taxpayer to its employes.
(b) Effect of method of accounting. If the taxpayer uses either the cash or accrual method of accounting in reporting its taxable income to the IRS, the total amount paid to individuals for a tax period is determined upon the basis of the accounting method of the taxpayer.
(c) Effect of denial of deduction for wages and salaries. The payroll factor shall include compensation whether or not included as part of the deduction for wages and salaries of the taxpayer. Reference should also be made to § 153.12 (relating to altering Federal taxable income).
Source The provisions of this § 153.25 adopted June 9, 1978, 8 Pa.B. 1579, amended February 20, 1981, effective June 23, 1979, 11 Pa.B. 726. Immediately preceding text appears at serial page (36125).
Cross References This section cited in 61 Pa. Code § 153.29 (relating to corporation tax: interest in partnership/joint venture).
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