Pennsylvania Payroll Tax Rates for 2017
Here is a summary of all the changes to Pennsylvania payroll tax rates in 2017. We keep this page updated, but if you’d like to be alerted to more changes to Pennsylvania Payroll Tax rates in future, you can subscribe to our Payroll Tax Alert Service.
If you’d like help with your payroll tax, we’d be happy to give you a quote. You’ll be assigned your very own payroll tax expert and our prices start at $4 per employee per month.
Pennsylvania Income Tax Rate
The withholding rate for 2017 remains at 3.07%
Pennsylvania Unemployment Tax
The employee rate for 2017 is 0.07%. Wages subject to unemployment contributions for employees are unlimited. Wages subject to unemployment contributions for employers increase to $9,750.
Effective January 1, 2017 employers are required to pay unemployment compensation (UC) contributions and reimbursement Statement of Accounts electronically if the total liability owed equals or exceeds $5,000 for a payment period.
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City of Philadelphia Wage Tax
Effective July 1, 2016 tax rates are 3.9004% for Philadelphia residents and 3.4741% for nonresidents. These rates are adjusted by the City of Philadelphia on July 1, of each year.
Pennsylvania Local Tax Rate
Act 32 is a law that reformed and standardized the local earned income tax (EIT) system, which requires uniform withholding of earned income taxes and local services tax with remittance to a single local collector or Tax Officer. For more information, see www.dced.pa.gov.
New Hire Reporting Requirements
All employers in the state of Pennsylvania are required to report basic information about employees who are newly hired, rehired and returning to work after separation of employment or leave of absence, temporary employees, and contracted entities. Employers must report this information within 20 days via the internet at www.cwds.pa.gov. Failure to report a new employee could result in a fine up to $25 per violation. New employers should receive instruction booklets upon registration with the state. Basic employee information which must be provided is as follows:
(1) Employee’s name
(2) Employee’s address
(3) Employee’s social security number
(4) Employee’s date of hire and birth
(5) Employer’s name and address
(6) Employer’s federal identification number
For further information contact us or call the State of Pennsylvania at 1-888-724-4737
2017 Wage Tax Rate Summary for Pennsylvania
| 2017 Current Year | 2016 Prior Year | |
| Minimum Wage | $7.25 | $7.25 |
| | ||
| Unemployment | | |
| Maximum taxable earnings | $9,750 | $9,500 |
| Employee deduction | 0.07% | 0.07% |
2017 Wage Tax Rates for the City of Philadelphia
| 2017 Current Year | 2016 Prior Year | |
| City Wage Tax | ||
| Residents | 3.9004% | 3.9102% |
| Non-Residents | 3.4741% | 3.4828% |
View more rates on our Federal Payroll Tax Update page.
View our End-of-Year Payroll Checklist
