Pennsylvania Payroll Taxes


Pennsylvania Unemployment -UI- Tax:
Unlike Federal Unemployment tax where only the employer pays the UI tax, in Pennsylvania both the employee and the employer pay UI taxes. As of 2018 the first $10,000 of an employee wages are subject to the Employer UI Tax contriubution where as for the employee there is no limit and each employee in Pennsylvania paye 0.06% of its gross wages for the state unemployment tax. Employer is responsible for withholding the employee's share of the UI tax. Employer's UI tax rate is determined by the state unemployment compensation office. Reporting is done quarterly at the Pennsylvania Unemployment Compensation Management System (UCMS) that allows each employer to directly report his/ her Unemployment & Employee UI Withholdings online. Payroll co-op, the free payroll software for small busniness provides you with all the information that you need to file your UI taxes on the state UCMS website.

Pennsylvania Payroll Personal Income tax Withholdings:
Withholding tax rate in Pennsylvania is a flat 3.07% of all taxable compensations of any resident or nonresident employee in the state of Pennsylvania. Employers are responsilbe to withhold the income tax and report it to the state. Filing should be done on line at Pensylvania Department of Revenue website. Employers must register with the Department of Revneue and e-Tides service to use the online filing service.

Payroll co-op creates the paychecks and the information that you need to report your UI taxes to UCMS and income tax withholding at the Department of Revenue website.