Quick Answer

New employers in Pennsylvania need four registrations before the first paycheck goes out: a federal EIN from the IRS, a state withholding account with the Pennsylvania Department of Revenue through myPATH, a UC account with the Office of UC Tax Services through UCMS, and workers' compensation coverage. Add new hire reporting within 20 days of each hire, and local tax registration if you have employees in a municipality with its own earned income tax.

Last reviewed: July 2026

Hiring your first employee in Pennsylvania triggers a short list of registrations, and the order matters because each one feeds into the next. Skip a step or register out of order and you'll spend time backtracking. Here's the sequence that avoids that.

1. Get Your Federal EIN

Apply for an Employer Identification Number at irs.gov/ein. The online application takes a few minutes and the number is issued the same day. Every registration below asks for this number, so handle it first.

2. Register with the PA Department of Revenue

Register for state withholding through myPATH, the Pennsylvania Department of Revenue's online business tax system. This is the Pennsylvania Enterprise Registration process, and it covers withholding along with any other state tax types your business needs, such as sales tax.

  • Have your EIN, legal business name, entity type, and business address ready before you start.
  • Select "Employer Withholding" as a registered tax type.
  • You'll receive a Pennsylvania withholding account number and access to file and pay through myPATH going forward.

Do this before your first payroll payment. Pennsylvania withholds a flat 3.07% from taxable wages, so once you're registered there's no bracket table to maintain.

3. Register for PA UC Through UCMS

Register with the Office of UC Tax Services at uc.pa.gov using the UC Management System (UCMS). You'll need to create a UCMS user account first, then register your business under it. Have your EIN, entity type, first date of Pennsylvania wages, and owner or officer information on hand.

After you submit, the Department of Labor & Industry issues a UC employer account number, usually within a few business days, along with your assigned new-employer contribution rate. That account number is required on every quarterly UC return going forward. For the full walkthrough of thresholds, timing, and what happens after you register, see our Pennsylvania UC registration guide.

One detail worth flagging here: Pennsylvania UC includes a small employee-paid contribution (0.07% of gross wages, uncapped) on top of your employer rate. Make sure whatever payroll system or spreadsheet you use is set up to withhold both pieces from day one.

4. Report New Hires Within 20 Days

Once you've made your first hire, report them to the Pennsylvania New Hire Reporting Program through PA CareerLink at pacareerlink.pa.gov within 20 days of their start date. This applies to every employer in the state regardless of size or industry, and it feeds a federal database used to locate parents who owe child support.

5. Set Up Workers' Compensation Coverage

Pennsylvania requires workers' compensation insurance for virtually every employer with at least one employee. Get a policy from a licensed carrier, or apply to self-insure through the Bureau of Workers' Compensation if your business qualifies. Coverage needs to be active before the employee's first day, not after. Carrying no coverage exposes you to penalties and direct liability for any workplace injury claim.

6. Check Whether Local Tax Registration Applies

If any employee lives or works in a Pennsylvania municipality outside Philadelphia, you likely owe local earned income tax under Act 32 and need to register with that municipality's Local Tax Collection Bureau. Philadelphia runs its own wage tax system separate from Act 32, with its own registration through the city's Department of Revenue. Our Pennsylvania local income tax guide explains how to find the right rate and collector for each employee's location.

With registrations in hand, running an actual paycheck is easier to get right the first time if you check the numbers against a paycheck calculator and have new hires fill out their federal paperwork through a W-4 helper. Once quarterly filings start, our Form 941 guide covers the federal side of the calendar.

Frequently Asked Questions

What is the first step in Pennsylvania new employer registration?

Get a federal EIN from the IRS before starting any Pennsylvania registration. Every state account you open, from withholding to UC, is tied to that EIN.

Do I need workers' compensation insurance in Pennsylvania?

Almost always, yes. Pennsylvania requires workers' compensation coverage for virtually every employer with one or more employees, and coverage must be in place before the employee's first day of work.

How long does Pennsylvania employer registration take?

An EIN is issued immediately online. myPATH withholding registration is typically approved within a few business days. UC registration through UCMS is also usually processed within a few business days, with the employer account number arriving by mail shortly after.

Is there a fee to register as an employer in Pennsylvania?

No. Registering for an EIN, PA withholding, and PA UC are all free. You only pay actual tax liability and, separately, your workers' compensation insurance premium.

Where Software Helps

Once your accounts are open, Gusto can take over the ongoing work: state withholding deposits, quarterly UC filings, new hire reports, and local tax remittances all run through one system instead of four separate logins.

Legal & Tax Disclaimer

This article is for general informational purposes only and does not constitute legal, tax, or professional advice. Employment laws, tax regulations, and compliance requirements change frequently. The information on this page reflects our understanding as of July 2026 and may not reflect subsequent changes in federal or Pennsylvania state and local law.

Do not act or refrain from acting based solely on the information in this article. Always consult a qualified attorney, CPA, or HR professional familiar with Pennsylvania law before making payroll or compliance decisions for your business.

EB
Eric Bennet
Owner, Pacific Data Services

Eric has worked with Pacific Data Services since 1984, a full-service payroll and bookkeeping firm serving small businesses across the U.S.