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Taxes
Pennsylvania Payroll Taxes 2026: Complete Overview for Employers
PA flat 3.07% state income tax, SUI via PA UC system, local earned income tax, and Local Services Tax — all explained.
Practical, accurate resources for Pennsylvania small business owners — covering payroll taxes, local income tax, labor laws, and compliance.
PA flat 3.07% state income tax, SUI via PA UC system, local earned income tax, and Local Services Tax — all explained.
Register at uc.pa.gov using the PAMS system. Employer account number, quarterly UC-2 filing, and when registration is required.
New employer rate 3.822%, experienced employer range 1.419%–10.3189%, wage base $10,000, and PA UC trust fund explained.
Every PA municipality has its own EIT rate. Withhold based on work location, not residence. Tax Collection Districts and DCED oversight explained.
PA minimum wage $7.25/hr — same as federal since 2009. Philadelphia $15/hr. Tipped minimum $2.83/hr. Pittsburgh's attempt struck down.
Semi-monthly pay required, final pay next regular payday, Wage Payment and Collection Law, strict deduction rules, and pay stub requirements.
FICA, Social Security, Medicare, FUTA, federal withholding — the complete breakdown of what employers owe.
Get your EIN, register with the state, set up withholding, new hire reporting — the complete first-payroll checklist.
IRS classification rules, Pennsylvania-specific considerations, misclassification penalties, and when each classification applies.
IRS lookback period, deposit thresholds, next-day rule, EFTPS, and penalties for late deposits.
Federal and state new hire reporting requirements, what to report, how to file, and penalties for non-compliance.
FLSA, IRS, and Pennsylvania recordkeeping requirements — what to keep, how long, and why it matters.
ALE threshold, penalties for non-compliance, 1094-C/1095-C filing, small business exemption, and SHOP marketplace.
Misclassifying workers, wrong withholding, missed deposits, ignoring state law — the mistakes that add up fast.
Detailed comparison of Gusto, Paychex, QuickBooks Payroll, and ADP for Pennsylvania small businesses.
Federal OT after 40 hrs/week, Pennsylvania overtime rules, exemptions, and salary thresholds for 2026.