USA State Taxes

PENNSYLVANIA (PA)

 

STATE INCOME TAX (SIT)

Description Amount Effective Date Website Deposit Method / Frequency / Threshold Forms
Wage Withholding 3.07%  

Department of Revenue - Employer Withholding

 

Register for employer withholding tax online through the Online (PA-100).

Quarterly $0 - $299.99 / quarter due last day of following month. EFT

Monthly $300 - $999/quarter. Due 15th of following month

Semi-Monthly $1,000-$4,999.99. Due in 3 business days

Business Tax E-Services

Forms

Online - Employer Deposit Statement PA-501

Online - Quarterly Reconciliation W3

 

No state equivalent to W4 since flat rate.

Supplemental Wage / Bonus Rate 3.07%  

 

 

Notes: Must electronically file the PA W3 employer withholding tax return claiming zero wages for the quarter.

Reciprocal states are Indiana, Maryland, New Jersey (til Dec 31, 2016), Ohio, Virginia or West Virginia.

Semi-weekly $5000 or more.

 

STATE UNEMPLOYMENT INSURANCE (SUI)

Description Amount Effective Date Website Deposit Method / Frequency / Threshold Forms
Maximum Taxable Earnings

$10,000

Unchanged from 2023 Department of Labor & Industry Office of Unemployment Compensation

 

Employee Withholding

 

Register for UC

Quarterly Check

Online reporting only applicable for < 100 employees, File upload through the employer portal, or File Transfer Protocol (FTP). If >100 employees must use FTP.

Lookback period is Jul-Jun.

 

Payment made at Unemployment Compensation Management System (UCMS) with Keystone ID

Forms

UI Quarterly Tax Form - UC-2

Quarterly Report of Wages Paid - 2A

Employee Deduction

Wages paid x 0.06%

Unlimited  

Employer Tax Rate

(Includes 9.2% surcharge, 0.0% interest tax factor & 0.60% additional contribution tax

1.419 - 10.3734% 2024

New Employment Rate - Standard

(Includes 9.2% surcharge)

3.82% Unchanged from 2023
Voluntary Contribution Permitted Yes  

 

 

NEW HIRE REPORTING

Website Frequency / Method Forms
New Hire Same as federal requirements.

11+ Employees - File upload or SFTP.

<10 Manual data entry on site

Register for Keystone ID and password and report online at PA Career Link

 

 

LOCAL WITHHOLDING TAXES

Description Amount Website Deposit Method / Frequency / Threshold Forms
Pennsylvania (Local Earned Income Tax (EIT)

An individual employee’s local Earned Income Tax (EIT) Rate is determined by comparing the employee’s “Total Resident EIT Rate” (for the municipality in which the employee lives) to the “Work Location Non-Resident EIT Rate” (for the municipality in which the employee works). The applicable EIT rate owed and to be withheld is always the higher of the two rates.

Local rates by address

Local Income Tax Information

 

Quarterly - Paid to Tax Collection Districts (TCDs)

Employer Quarterly Return

Residency Certification Form required from employees (Addendum to Federal W-4).

Local Services Tax (LST) - PA Worksite municipality

All employers with work sites within the taxing jurisdiction are required to deduct the LST from their employees at the site of employment if the tax is listed in the Official Tax Register.

Typically $1/week.

Local Services Taxes

Register with each local tax collector e.g. Berkheimer or Keystone etc.

Quarterly - Paid to Tax Collection Districts (TCDs). Due 30 days after quarter.

If the combined rate of a municipal and school LST exceeds $10, it must be assessed and collected in installments based on payroll periods.

Forms

Exemption Certificate

 

Philadelphia Wage Tax

(For either: A resident of Philadelphia, or A non-resident of Philadelphia who performs services for an employer in Philadelphia)

3.8398% for residents of Philadelphia, or 3.4481% for non-residents

(2022)

Philadelphia Wage Tax

Register with City of Philadelphia

Quarterly - < $350/month. Mail with coupons.

Monthly - > than $350 < $16,000/month. Mail with coupons.

Semi-monthly - $16,000 or more per month (bi-monthly payroll deductions). Must file ACH Debit or Credit.

Weekly - $16,000 or more per month. Must file ACH Debit or Credit.

Remittances to Department of Revenue.

Forms - see website

Pittsburgh City and School District Earned Income Taxes & Local Taxes

(applied to people who earn income and net profits and are City and School District residents.

Pittsburgh Resident 3.0% (0.03) - (1% for city and 2% for school district).

Mt. Oliver Resident 2.0% (0.02)

Non-Pennsylvania residents who work within the City 1.0% (0.01)

Pittsburgh Department of Finance

Online registration. See JTS.

Quarterly estimates are due

Collected by Jordan Tax Services

Local Services Tax Quarterly - LS-1

Annual Reconciliation - W2-R

Pittsburgh Payroll Expense Tax Tax Rate of 0.0055   Quarterly Payroll Expense Tax ET-1

 

 

WEBSITES

 

 

Disclaimer: This information is for reference only. To ensure accurate set up, we highly recommend that the information is verified with the applicable federal and state/provincial agencies. TimeTrex makes no claims, guarantees, or promises about the accuracy, current status, or completeness of the information provided. In no event shall TimeTrex be liable for any errors or omissions with respect to any resource information.

 

Last updated Jan 2024