Payroll Pennsylvania, Unique Aspects of Pennsylvania Payroll Law and Practice

The Pennsylvania State Agency that oversees the- date of hire
collection and reporting of State income taxes- Employee's social security number
deducted from payroll checks is:- Employer's name
Department of Revenue- Employers address
Bureau of Business Trust Fund Taxes- Employer's Federal Employer Identification Number
Employer Tax Division(EIN)
Department 280904This information must be reported within 20 days of
Harrisburg, PA 17128-0904the hiring or rehiring.
(717) 783-1488The information can be sent as a W4 or equivalent by
Pennsylvania does not have a state form to calculatemail, or fax.
state income tax withholding.There is a written warning penalty for a late report in
Not all states allow salary reductions made underPennsylvania, $25.00 for later violations, and $500 for
Section 125 cafeteria plans or 401(k) to be treated inconspiracy.
the same manner as the IRS code allows. InThe Pennsylvania new hire-reporting agency can be
Pennsylvania cafeteria plans are not taxable forreached at 888-724-4737 or on the web at
income tax calculation if used to purchase health or lifePennsylvania does not allow compulsory direct deposit
insurance; taxable for unemployment insurancePennsylvania has no State Wage and Hour Law
purposes. 401(k) plan deferrals are taxable for incomeprovisions concerning pay stub information.
taxes; taxable for unemployment purposes.Pennsylvania requires that employee be paid on
In Pennsylvania supplemental wages are taxed at aregular paydays designated in advance.
3.07% flat rate.Pennsylvania requires that the lag time between the
You may file your Pennsylvania State W-2s byend of the pay period and the payment of wages to
magnetic media if you choose to.the employee not exceed fifteen days.
The Pennsylvania State Unemployment InsurancePennsylvania payroll law requires that terminated
Agency is:employees must be paid their final pay by next regular
Department of Labor and Industrypayday (by certified mail if employee requests).
Office of Employment SecurityDeceased employee's wages of $5,000 must be paid
Seventh and Forster Sts.to the surviving spouse, child, parent, or sibling (in that
Labor and Industry Bldg.order).
Harrisburg, PA 17121Escheat laws in Pennsylvania require that unclaimed
(717) 787-7613wages be paid over to the state after three years.
The State of Pennsylvania taxable wage base forThere is no provision in Pennsylvania law concerning
unemployment purposes is wages up to $8000.00.record retention of abandoned wage records.
Pennsylvania requires Magnetic media reporting ofPennsylvania payroll law mandates no more than 45%
quarterly wage reporting if the employer has at leastof minimum wage may be used as a tip credit.
250 employees that they are reporting that quarter.In Pennsylvania the payroll laws covering mandatory
Unemployment records must be retained inrest or meal breaks are only that minors under 16 must
Pennsylvania for a minimum period of four years. Thishave 30 minutes rest after five hours of work.
information generally includes: name; social securityPennsylvania statute requires that wage and hour
number; dates of hire, rehire and termination; wages byrecords be kept for a period of not less than three
period; payroll pay periods and pay dates; date andyears. These records will normally consist of at least
circumstances of termination.the information required under FLSA.
The Pennsylvania State Agency charged withThe Pennsylvania agency charged with enforcing Child
enforcing the state wage and hour laws is:Support Orders and laws is:
Department of Labor and IndustryBureau of Child Support Enforcement
Bureau of Labor Law ComplianceDepartment of Public Welfare
Labor and Industry Bldg., Rm. 1301P.O. Box 2675
Seventh and Forster Sts.Harrisburg, PA 17105-2675
Harrisburg, PA 17120(717) 787-1894
(717) 787-5279*
The minimum wage in Pennsylvania is $5.15 per hour.Pennsylvania has the following provisions for child
The general provision in Pennsylvania concerningsupport deductions:
paying overtime in a non-FLSA covered employer is- When to start Withholding? First pay period after 14
one and one half times regular rate after 40-hourdays from service.
week.- When to send Payment? Within 7 days of Payday.
Pennsylvania State new hire reporting requirements- When to send Termination Notice? "Promptly"
are that every employer must report every new hire- Maximum Administrative Fee? 2% of payment.
and rehire. The employer must report the federally- Withholding Limits? Federal Rules under CCPA.
required elements of:Please note that this article is not updated for changes
- Employee's namethat can and will happen from time to time.
- Employee's address