Pennsylvania Paycheck Laws: A Comprehensive Guide for Employers
Before providing pay stubs to your employees and contractors in Pennsylvania, it's essential to grasp the relevant laws and regulations governing pay stub issuance. .
This comprehensive guide clarifies the legal framework and requirements applicable to employers in Pennsylvania, ensuring compliance and proper management of pay stub processes.
Pay stub regulations in Pennsylvania
1. Are pay stubs required by law in Pennsylvania?
Employers in Pennsylvania must provide their employees with pay stubs every payday.
2. How often do you need a pay stub in Pennsylvania?
You will need to pay your employees on a semi-monthly basis. As pay stubs are mandatory in Pennsylvania, you will need to provide pay stubs every time you pay your employees.
3. What information can be included on a pay stub in Pennsylvania?
The following information can be included in employee pay stubs:
- Employee information such as name, last 4 digits of social security number, and address
- Employer information such as name, employer identification number (EIN), and address
- Employee's pay rate.
- the number of hours employee worked;
- Tax Deductions
- gross wages;
- Other deductions you have authorized your employer to make.
- Gross earnings before deductions.
- beginning and ending dates of the pay period.
4. Does Pennsylvania have a state income tax?
The State of Pennsylvania requires employers to withhold state income and applicable local income taxes from employee paychecks in addition to employee-withheld unemployment taxes.
5. Are there any other taxes applicable to Pennsylvania?
Yes. Employers with worksites located in Pennsylvania are required to withhold and remit the local Earned Income Tax (EIT) and Local Services Tax (LST) on behalf of their employees working in Pennsylvania.
Information needed to generate pay stubs
To provide employees with accurate pay stubs, the information below is required.
- Employee's eligibility for Pennsylvania SUI
- Employee's exemption status from state withholding
- Employee's filing status and additional state withholding amount
Pennsylvania wage and hour laws
Pennsylvania wage and hour legislation mandates that employers furnish non-exempt employees with essential entitlements, including minimum wage, overtime pay, meal and rest breaks, and paid time-off benefits.
Legal regulations encompass the following aspects:
Minimum Wage
Pennsylvania law requires employers to pay workers at least the specified minimum hourly wage, ensuring compliance with legal standards.
In 2024 Workers must be paid a minimum of $7.25 for each hour they work in Pennsylvania.
Overtime pay
In Pennsylvania, the majority of employees are entitled to receive overtime compensation if they work beyond 40 hours in a week at a rate of 1.5 times their regular hourly wage.
Meal break and rest break
Pennsylvania law does not require employers to provide meal and rest breaks to their employees.
Paid time off and leave
Pennsylvania employers are required to offer their employees both mandatory and discretionary leave benefits.
| Required Leave | Non-Required leave |
|---|---|
| Unpaid | Paid or Unpaid |
| The Family and Medical Leave Act (FMLA) offers eligible employees up to 12 weeks of unpaid maternity/paternity leave. | Vacation leave |
| Jury Duty leave | Bereavement leave |
| Military leave | Holiday leave |
| Witness leave | Voting leave |
| Sick leave |
Pennsylvania state payroll taxes 2024
In Pennsylvania, payroll taxes are categorized as follows:
- Pennsylvania Personal Income Tax(PIT)
- pennsylvania State Unemployment Insurance (UI) tax
Pennsylvania Personal Income Tax(PIT)
Pennsylvania imposes a state personal income tax rate of 3.07%, which is determined by an individual's income level and filing status. Filing statuses include Single, Married Filing Jointly, Married Filing Separately, and Head of Household.
Pennsylvania State Unemployment Insurance (UI) tax
In 2024, The State Unemp͏loyment Tax A͏ct (͏SUTA) rates in Pennsy͏l͏vania range from 1.1419% to 10.3734%. The Additional Contributions Fa͏ctor is at 0.60%, and the Surcharge on employer contribution is at ͏9.20%. Besides, the employee rate has increased from 0.06% to 0.07%.
In 2024, the taxable wage base remains at $10,000.
Pennsylvania tax filing 2024
- Report of New hire Employees
- Report of New hire Independent Contractors
- Filing a Quarterly tax and wage Report(form UC-2 )
- Individual income tax filing (form PA-40)
Report of New hire Employees
Pennsylvania employers must report new hires to the Pennsylvania New Hire Reporting Center within 20 days from the employees' start date of employment.
Report of Independent Contractors
Employers in Pennsylvania are not obligated to report new hire contractors.
How to report employees' new hire in Pennsylvania ?
You have the option to choose from any of the following methods for reporting new hires.
| Online | Fax | |
|---|---|---|
| Employees New Hire Report | Commonwealth of Pennsylvania - New Hire Reporting Program P.O. Box 69400 Harrisburg, PA 17106 Public Phone:888-724-4737 Email: RA-LI-CWDS-NewHire@pa.gov | Fax 1: 866-748-4473 |
Filing a Quarterly tax and wage Report(form UC-2 )
Pennsylvania Unemployment Law stipulates that most employers are accountable for unemployment taxes and must report employee wages on a quarterly basis. This involves submitting a detailed Quarterly Wage and Contribution Report each quarter, and meeting specified filing deadlines to maintain compliance.
| Reporting Period | Due Date |
|---|---|
| Quarter 1 | April 30 |
| Quarter 2 | July 31 |
| Quarter 3 | October 31 |
| Quarter 4 | January 31 |
Individual income tax filing (form PA-40)
The Pe͏nnsylvania revenue department encourages taxpaye͏rs to use a free online service to submit their income tax returns starting on January 29. Taxpayers should remember that the deadline for filing their 2023 income tax re͏tur͏n͏s is April 15, 202͏4.
Have all the information handy?
With SecurePayStubs, you can calculate accurate federal and Pennsylvania state taxes for your employees and generate pay stubs securely.
Processing payroll manually is complex
As a business owner who runs payroll manually, you will need to keep up with ever-changing payroll laws. You already have a lot on your plate and you might not want to get into the complex process of pay stub generation.
With SecurePayStubs' user-friendly Pennsylvania payroll calculator, you can swiftly generate pay stubs for employees and independent contractors. Our paystub generator guarantees precise calculations for federal and Pennsylvania state taxes, enabling you to produce accurate pay stubs in under 2 minutes. Enter the basic employee and employer information, select a pay stub template for free, and let SecurePayStubs calculate the applicable payroll taxes accurately.
Spend less time generating pay stubs and more on your business growth.
This article has been updated from its original publication date of March 29, 2024.