Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 101 - GENERAL PROVISIONS › Section 101.1 - Definitions

Current through Register Vol. 54, No. 28, July 13, 2024
The following words and terms, when used in this article,
						have the following meanings, unless the context clearly indicates
						otherwise:
Accepted accounting principles and
						practices
-Those accounting principles, systems or practices which are
						acceptable by standards of the accounting profession and which are not
						inconsistent with the regulations of the Department setting forth those
						principles and practices.
Association
-An unincorporated society; a
						body of persons united and acting together without articles of incorporation
						but upon the methods and forms used by incorporated bodies, for the prosecution
						of some common enterprise. The common enterprise shall be the conduct of a
						business, trade or profession or the view to ultimate enhancement in value of
						the property of the association which is either to be returned to the members
						or sold and the profits returned to the members. The term does not include
						associations that are purely charitable or religious organizations,
						recreational or social clubs, and similar agencies.
Business
-An enterprise, activity,
						profession, vocation, trade, joint venture, commerce or other undertaking of
						any nature if engaged in as a commercial enterprise and conducted for profit or
						ordinarily conducted for profit, whether by an individual, partnership,
						association or other unincorporated entity.
Cafeteria plan
-A plan qualifying under
						section 125 of the IRC (26
						U.S.C.A. §
												125).
Casual employe
-An individual who
						performs, or by agreement, refrains from performing, any service of whatever
						nature and is not an employe.
Casual employer
-A person for whom a
						casual employe performs, or refrains from performing, any service, provided
						that, if the person does not make the payment of remuneration, the term also
						includes the person making payment.
Charitable trust
-A trust operated
						exclusively for religious, charitable, scientific, literary or educational
						purposes.
Claimant
-A person who is subject to the
						tax imposed under this article, is not a spouse or child who derives more than
						one-half of their total support from another person.
Department
-The Department of Revenue of
						the Commonwealth.
Dependent
-A spouse or child who derives
						more than one-half of his total support during the entire taxable year from
						another individual. A spouse means a husband or wife. A child means and
						includes a natural child, an adopted child, a stepchild and a grandchild. A
						foster child who during the entire taxable year lives in the claimant's home
						shall be considered to be a child. For purposes of determining support, all
						sources of income are to be considered, whether taxable income or nontaxable
						income. Conditions of blindness or old age may not be a factor in determining
						the number of a claimant's dependents.
Discriminatory plan
-A plan that treats
						highly compensated participants more favorably in coverage, contributions or
						benefits. In determining whether a cafeteria plan is discriminatory, the
						special rules of section 125(g) of the IRC apply.
Dividends
-A distribution in cash or
						property made by a corporation, association or business trust out of
						accumulated earnings and profits, or out of earnings and profits of the year in
						which the dividend is paid. The term does not include a return of
						premium.
Domicile
-The place which an individual
						intends to be his permanent home and to which he intends to return whenever he
						may be absent.
Employe
-An individual from whose wages
						an employer is required under the IRC to withhold Federal Income Tax. For the
						purpose of this definition, the terms "employe," "employer" and "wages" have
						the same meanings as in Chapter 24 of the IRC (26 U.S.C.A. §§
												3401 -
						3406), relating to collection of
						Income Tax at source on wages.
Employe welfare benefit plan
-
(i) A plan established or maintained to
					 provide to eligible employes or their beneficiaries plan benefits, such as:
(A) Medical, surgical or hospital care or
					 benefits in the event of sickness, accident or disability.
(B) Death benefits.
(C) Scholarships.
(D) Personal expense reimbursements,
					 advancements or allowances such as rental vehicle, dependent care, food or
					 housing allowances.