Pennsylvania Payroll Tax Rates for 2016
Here is a summary of all the changes to Pennsylvania payroll tax rates in 2015. 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 2016 remains at 3.07%
Pennsylvania Unemployment Tax
The employee rate for 2016 is 0.07%. Wages subject to unemployment contributions for employees are unlimited. Wages subject to unemployment contributions for employers increase to $9,500.
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City of Philadelphia Wage Tax
Effective July 1, 2015 tax rates are 3.9102% for Philadelphia residents and 3.4828% 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 reforms and standardizes the local earned income tax (EIT) system, which requires uniform withholding of earned income taxes and remittance to a single local collector or Tax Officer. For more information visit the Pennsylvania Department of Community & Economic Development.
New Hire Reporting Requirements
All employers in Pennsylvania are required to report basic information about employees who are newly hired, re-hired, who return to work after separation of employment, or who are returning from a required leave of absence without pay greater than 30 days. Employers can report this information 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:
(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
2016 Wage Tax Rate Summary for Pennsylvania
| 2016 Current Year | 2015 Prior Year | |
| Minimum Wage | $7.25 | $7.25 |
| | ||
| Unemployment | | |
| Maximum taxable earnings | $9,500 | $9,000 |
| Employee deduction | 0.07% | 0.07% |
2016 Wage Tax Rates for the City of Philadelphia
| 2016 Current Year | 2015 Prior Year | |
| City Wage Tax | ||
| Residents | 3.9102% | 3.920% |
| Non-Residents | 3.4828% | 3.4915% |
View more rates on our Federal Payroll Tax Update page.
