Pennsylvania New Employer Information
Congratulations on your decision to become a new employer in Pennsylvania! You will need a few things in place before you run your first
payroll:
Federal and State Tax Accounts
Federal Tax Accounts:
- Although it is not required, we suggest you register for the EFTPS (Electronic Federal Tax Payment System).
- The Electronic Federal Tax Payment System (EFTPS) is an easy way to pay your federal taxes online or view any tax filings made on your behalf by Patriot’s payroll services.
- To find out more about EFTPS, please read our article, “What Is EFTPS?”
State of Pennsylvania Tax Accounts:
- Pennsylvania new employers will need to register their business with the state of Pennsylvania to obtain both:
- State Income Tax (SIT) account with the Department of Revenue for payroll withholding taxes
- State Unemployment Insurance (SUI) account with the Department of Labor and Industry for unemployment taxes
- You can register online through Revenue e-Services Center online PA100 for both of these accounts. For tax-specific registration assistance, contact the state at (717) 787-1064.
- SUTA is the state unemployment tax assessment assigned to businesses to fund state unemployment funds.
- The total Pennsylvania new employer SUTA contribution rate is 3.5% (non-construction employers) and 9.7% (construction employers). This amount increases or decreases based on the Surcharge adjustment. Between 2018-2022, the total contribution rate for newly liable employers is 3.6890 (non-construction) and 10.2238% (construction). You can find more information on Pennsylvania’s Office of Unemployment Compensation website.
- Employers in Pennsylvania will receive a new State Unemployment Tax Assessment (SUTA) rate every year.
- To learn more about SUTA please read our article, “What Is SUTA Tax?”
Setting Up Your New Employee:
- Fill out the required Form I-9 for employee verification for working in the USA.
- The employee will complete the first section of Form I-9 and the second section is completed by the employer.
- You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information, please read, “Form I-9 In a Nutshell”
- Pennsylvania employees are required to complete a Residency Certification Form upon hire (and with any subsequent change in address) to confirm the PSD Codes and EIT Rates being used by the employer for the employees’ local taxing purposes.
- You will need to save this form along with your other employee information.
- You can learn more on the PA Department of Community and Economic Development website.
- Pennsylvania’s minimum wage is $7.25 per hour.
- By law you are required to post the minimum wage poster for your employees where they can read it.
Once you have all the necessary information, you will be able to set up your payroll for your business.
You will want to keep all payroll records for at least three years. For more information, please read our help article, “What Employers Should Know About Employee Payroll Records.”
Let us know if you have any questions. We are here to help!
Disclaimer: This is not an all-inclusive list for new employers. Please visit appropriate federal, state and local government websites for more information.
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