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2019 Pennsylvania Payroll Tax Rates

December 21, 2018 | posted by Abacus Payroll

Abacus Payroll and Alloy Silverstein present  an updated summary of all changes to Pennsylvania payroll tax rates in 2019.

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 payroll, 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.

 

Print Full 2019 Payroll Tax Alert [PDF]


Pennsylvania Income Tax Rate

The withholding rate for 2019 remains at 3.07%

 

Pennsylvania Unemployment Tax

The employee rate for 2019 remains at 0.06%. Wages subject to unemployment contributions for employees are unlimited. Wages subject to unemployment contributions for employers remains at $10,000.

 

FREE Paycheck and Tax Calculators

 

City of Philadelphia Wage Tax

Effective July 1, 2018 tax rates are 3.8809% for Philadelphia residents and 3.4567% for nonresidents. These rates are adjusted by the City of Philadelphia on July 1 of each year.

 

New 2018 Pennsylvania 1099-MISC Withholding Tax

Effective 2018 there is a new withholding requirement for payors of Pennsylvania-source non-employee compensation and business income to non-resident individuals. In addition, lessees of Pennsylvania real estate making “lease payments” to non-resident lessors in the course of a trade or business are required to withhold personal income tax on payments of $5,000 or more annually. The 1099-MISC forms will need to be filed with the Pennsylvania Department of Revenue in January 2019 with boxes 16 and 17 completed, along with the Annual Withholding Statement (PA Form Rev-1667). Details can be found at http://revenue.pa.gov.

 

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 From Abacus Payroll: An HR Help Center starting at $10/month

 

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

 

2019 Wage Tax Rate Summary for Pennsylvania

 

2019 Current Year 2018 Prior Year
Minimum Wage $7.25 $7.25
Unemployment
Maximum taxable earnings $10,000 $10,000
Employee deduction 0.06% 0.06%

 

 

2019 Wage Tax Rates for the City of Philadelphia

(As of July 1, 2018)

2019 Current Year 2018 Prior Year
City Wage Tax
Residents 3.8809% 3.8907%
Non-Residents 3.4567% 3.4654%

View more rates on our Federal Payroll Tax Update page.

 

Print Full 2019 Payroll Tax Alert [PDF]

 

 

 

 

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About the Author: Abacus Payroll

Abacus Payroll, Inc. is a leading provider of payroll solutions for businesses of all sizes. Whether yours is a family-owned small business or a national corporation, we provide payroll, tax and other financial services on time and at an affordable price. Unlike other payroll providers, Abacus Payroll will assign your very own payroll specialist who will understand your payroll needs inside and out. So no more speaking to a different person each time, no more sitting on hold for hours and most importantly no more missed deadlines! Contact us today to see how we can help your business. You can count on us.