Pennsylvania Payroll Tax and Labor Laws

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Pennsylvania Wage and Hour Laws

Minimum Wage

Pennsylvania minimum wage law is currently $7.25 per hour and states that minimum wage shall be paid for hours worked, regardless of the frequency of payment and regardless of whether the wage is paid on an hourly, salaried, or commissioned, piece rate, or any other basis.

Overtime

Pennsylvania overtime law requires that each employee shall be paid for overtime not less than 1.5 times the employee’s regular rate of pay for all hours in excess of 40 hours in a workweek.

Pay Frequency

Pennsylvania law provides that every employer shall pay all wages, other than fringe benefits and wage supplements, due its employees on regularly scheduled paydays designated in advance by the employer. Payment for overtime must be included with wages for the next following pay period.

The waiting time between the end of a pay period and payday must not exceed: (a) the time specified in a written contract between employer and employee, or (b) the standard time lapse customary in the trade, or (c) 15 days.

Pennsylvania Unemployment

Taxable Wage Base ($000s):                                               $10,000

New Employer Rate (% Taxable Wages):                      3.822% Non-Construction, 10.5924% Construction

Pennsylvania Income Tax Withholding

Pennsylvania requires employers to withhold state income tax from their employees' wages and remit the amounts withheld to the Revenue Department.

Every employer that has an office or does business in Pennsylvania that pays compensation must withhold state income tax from each payment of wages to employees. Tax must be withheld from wages of resident employees for services performed either within or outside Pennsylvania and from wages of nonresident employees for services within the state.

Pennsylvania State Resources

Pennsylvania Department of Revenue

Pennsylvania Department of Labor & Industry

Pennsylvania Office of Unemployment Compensation

SurePayroll, Inc. and its subsidiaries assume no liability and make no warranties on or for the information contained on these state payroll pages. The information presented is intended for reference only and is neither tax nor legal advice. Consult a professional tax, legal or other advisor to verify this information and determine if and/or how it may apply to your particular situation.

This website contains articles posted for informational and educational value. SurePayroll is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, SurePayroll. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant. If you require legal or accounting advice or need other professional assistance, you should always consult your licensed attorney, accountant or other tax professional to discuss your particular facts, circumstances and business needs.

Revised 1/1/2024