I am preparing a PA-41 estate tax return for a estate that is considered a resident of PA.   There are two beneficiaries who are residents of MD.  Therefore, they are to receive Schedule NRK-1, reporting to them, as non-residents of PA, there respective shares of estate income.   At least I think I have this part right so far.

The software if I am completing things correctly is showing their income on Schedule NRK-1, but is also calculating the amount of PA income tax owed, and saying that tax is withheld.   This seems odd to me. 

Example.   NRK- for particular beneficiary that lives in MD shows income from Estate or Trusts line 1 in section II of $32,533.   Then on line 2 of Section II, "PA nonresident tax withheld" the amount is $999.

Must the Executor of the estate actually withheld PA income tax for this, and pay that into PA Dept of Revenue?  If so, what are the mechanics of that, and how is that done.   All seems rather odd.