Free Pennsylvania Payroll Tax Calculator

How to Use the Pennsylvania Payroll Tax Calculator (Step-by-Step)

Understanding your paycheck is essential, and our Pennsylvania Payroll Tax Calculator simplifies the process. Follow these easy steps to get an accurate estimate of your net pay:

Step 1: Enter Your Location and Filing Status

Country: Ensure “United States” is selected. (This is pre-filled.)
Province/State: Choose “Pennsylvania” from the dropdown menu. (This is pre-filled.)
Federal Filing Status: Select your current federal filing status (e.g., Single, Married Filing Jointly, etc.) from the dropdown. This reflects how you file your federal taxes.
Federal Allowances: Enter the number of federal allowances you are claiming. This number affects the amount of federal income tax withheld from your paycheck. (Use your W-4 form as a guide.)
Local Withholding Tax (PSD Code): Enter your Pennsylvania local withholding tax code (PSD code). This is necessary for accurate local tax calculations. If you do not know your PSD code, you can search for it on the Pennsylvania Department of Community & Economic Development website, or on the website of your local tax collector.
Local Withholding Tax (Additional Amount): If you are required to withhold an additional amount for local taxes, enter that amount.
State Filing Status: Pennsylvania has a flat income tax rate, so filing status is not required for state income tax calculation.

Step 2: Input Your Pay Information

Annual Pay Periods: Select how often you receive your paycheck (e.g., Bi-Weekly (26), Weekly, Monthly) from the dropdown. This is essential for accurate annual calculations.
Gross Wage/Pay Period: Enter your total earnings before any deductions for the pay period. This is your gross pay.
Pay Date: Select the pay date using the calendar tool. This is for your reference and does not affect the tax calculations.

Step 3: Calculate Your Taxes

Click the “Calculate” button.
The calculator will instantly display your estimated:
- Pay Period Section:
  - Taxable Income: The portion of your income subject to taxes for the pay period.
  - Federal Tax: The estimated federal income tax withheld for the pay period.
  - State Tax: The estimated Pennsylvania state income tax withheld for the pay period.
  - Local Tax: The estimated local income tax withheld for the pay period.
  - Total Tax: The sum of federal, state, and local taxes for the pay period.
- Annual Section:
  - Taxable Income: Your estimated annual taxable income.
  - Federal Tax: Your estimated annual federal income tax.
  - State Tax: Your estimated annual Pennsylvania state income tax.
  - Local Tax: Your estimated annual local income tax.
  - Total Tax: Your estimated total annual taxes.

Step 4: Review and Adjust (If Needed)

Carefully review the calculated results.
If you need to make changes, adjust the input fields and click “Calculate” again.
To start a new calculation with different parameters, click the “New Calculation” button.

Important Notes:

This calculator provides estimates based on the information you provide.
Actual tax amounts may vary based on individual circumstances and additional deductions.
For precise tax calculations, consult a tax professional or refer to official IRS and Pennsylvania Department of Revenue resources.
Keep your W-4 form updated to ensure accurate federal tax withholding.
Ensure you have the correct PSD code for accurate local tax calculations.

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Pennsylvania W-2 and 1099 Filing Requirements for Employers

Annual Reporting Obligations for Wage and Non-Wage Income

Pennsylvania mandates that employers submit annual W-2 wage records and 1099 forms to the Pennsylvania Department of Revenue by January 31st following the applicable tax year.
This requirement encompasses a range of 1099 forms, including:
- 1099-Rs (Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.)
- 1099-MISC (Miscellaneous Income)
- 1099-NEC (Nonemployee Compensation)
Employers must also submit Annual Withholding Reconciliation Statements (REV-1667s).

Mandatory Electronic Filing Through myPATH

Employers who are obligated to file 10 or more W-2s or 1099s must submit these records electronically through the Department of Revenue’s online tax filing system, myPATH.

Clarification on Combined Federal/State Filing (CF/SF) Program

Despite Pennsylvania’s participation in the CF/SF program, employers must still file 1099 forms separately with the state.
This separate state-level filing is required by the January 31st deadline to ensure accurate and timely processing of tax returns, preventing potential delays.

Form-Specific File Specifications

File specifications for W-2s and 1099s vary depending on the specific form.
Employers must consult the myPATH Employer Withholding Multi-Import/File Upload File Specifications section to ensure they are using the correct file format for upload.

Defining Employer and Withholding Responsibilities

In Pennsylvania, an employer is defined as any individual, partnership, association, corporation, government body, or other entity that employs one or more individuals and is required to withhold federal income tax from their wages.
Employers are responsible for withholding and remitting employee taxes on wage and salary income according to established schedules.

Tax Remittance Schedules Based on Quarterly Withholding

Quarterly:
- If the total withholding is less than $300 per quarter, taxes are due on the last day of April, July, October, and January.
Monthly:
- If the total withholding is between $300 and $999 per quarter, taxes are due on the 15th day of the following month.
Semi-Monthly:
- If the total withholding is between $1,000 and $4,999.99 per quarter, taxes are due within three banking days of the close of the semi-monthly period.
Semi-Weekly:
- If the total withholding is $5,000 or more per quarter ($20,000 per year), taxes are due on:
  - The Wednesday following pay dates for employees paid on Wednesday, Thursday, or Friday.
  - The Friday following pay dates for employees paid on Saturday, Sunday, Monday, or Tuesday.

Additional Employer Reporting Requirements

Employers must file reconciliation returns for each quarter.
Employers are required to provide wage and tax statements (W-2s) to all employees and file W-2 transmittals.

Pennsylvania Payroll Tax Rates: A Detailed Overview

Pennsylvania State Income Tax (SIT)

Pennsylvania employs a flat income tax rate of 3.07%. This means that all residents, regardless of their income level, are subject to this uniform tax percentage on their taxable income.

Key Details Regarding Pennsylvania SIT:

Flat Rate: The 3.07% rate is consistently applied to all taxable wages.
Supplemental Withholding Computation: Pennsylvania does not utilize a supplemental withholding computation.
Valid Filing Statuses: While federal filing statuses are relevant for federal taxes, Pennsylvania’s flat rate system does not require specific filing statuses for state income tax withholding.
Exemptions: Pennsylvania does not offer personal exemptions for state income tax.
Form W-4: The federal Form W-4 is used for federal income tax withholding. However, for Pennsylvania SIT, allowances are not applicable as employers are required to withhold the flat 3.07% rate on all gross wages.
Reconciliation Frequency: Pennsylvania state income tax reconciliation is conducted annually.

Pennsylvania State Unemployment Insurance (SUI)

The Pennsylvania State Unemployment Insurance (SUI) program provides financial assistance to eligible workers who experience unemployment through no fault of their own, as defined by Pennsylvania state law, and who meet the state’s eligibility criteria.

Pennsylvania SUI Tax Details:

Taxable Wage Base: The taxable wage base for Pennsylvania SUI is $10,000. This means that only the first $10,000 of an employee’s annual wages are subject to SUI tax.
Employee Subject to Tax: Employees are subject to a 0.07% contribution on their total gross wages.
Rates for Experienced Employers: Experienced employers are assigned SUI tax rates that range from 1.419% to 10.3734%, depending on their experience rating.
Rates for New Employers: New employers are assigned a standard SUI tax rate of 3.82%.
Effective Period: The SUI tax rates are effective for the calendar year.
Voluntary Contributions Allowed: Employers have the option to make voluntary contributions to the SUI fund. These contributions must be made within 120 days of the start of the calendar year and 30 days after the mailing of employer SUI rates.

Pennsylvania Payroll Tax Details: Disability, Leave, and Local Taxes

Pennsylvania State Disability Insurance (SDI)

Pennsylvania does not mandate employers to collect State Disability Insurance (SDI) tax.
Therefore, there are no mandatory payroll deductions for SDI benefits at the state level.

Pennsylvania Paid Sick Leave (PSL) Tax

Pennsylvania does not require employers to collect Paid Sick Leave (PSL) taxes.
The state does not have a statewide program providing paid sick leave to employees.
However, local jurisdictions within Pennsylvania have implemented their own PSL programs, including:
- Allegheny County
- Philadelphia
- Pittsburgh

Pennsylvania Paid Family and Medical Leave (PFML) Tax

Pennsylvania does not require employers to collect Paid Family and Medical Leave (PFML) taxes.
The state does not have a statewide program providing PFML benefits.

Pennsylvania Local Earned Income Tax (EIT)

Employers in Pennsylvania are required to withhold and remit a Local Earned Income Tax (EIT) on behalf of their employees.
EIT rates vary based on both the employer’s location and the employee’s residence, each identified by a Political Subdivision (PSD) code.
The higher of the two rates (resident PSD or work PSD) is used for withholding.
The work PSD determines the state-based tax collector receiving the withheld funds and is used for wage reporting.
The resident PSD is used on quarterly tax returns to allocate funds to the appropriate local township or municipality.

Pennsylvania Local Services Taxes (LST)

Certain local townships or municipalities in Pennsylvania require employers to withhold and remit a Local Services Tax (LST).
LST rates vary based on the employee’s work location.
Not all local jurisdictions impose an LST.
Annual LST amounts typically fall into one of three categories:
- $10.00 annual amount, withheld from the employee’s first paycheck.
- $52.00 annual amount, withheld as $1.00 weekly, adjusted for pay frequency.
- $156.00 annual amount, withheld as $3.00 weekly, adjusted for pay frequency.
Employees earning less than $12,000 annually are exempt from LST.

Philadelphia Local Taxes (Wage Tax)

The city of Philadelphia imposes its own income tax, known as the Philadelphia Wage Tax, in place of the state’s EIT.
Wage Tax rates are:
- 3.75% for city residents.
- 3.44% for nonresident employees.
Philadelphia requires employers to report the entity type of their company on quarterly returns. The entity types are:
- TST – Trust
- IND – Individual/Sole Proprietor
- CRP – Corporation
- PART – Partnership
- EST – Estate
- GOVT – Government
- NONP – Nonprofit
- DIS – Disregarded Entity

Pennsylvania Tax Information: Reciprocal Agreements and Minimum Wage

Pennsylvania Reciprocal Agreements

Pennsylvania has established reciprocal agreements with several neighboring states, which significantly impacts tax obligations for individuals who live and work across state lines. These agreements stipulate that workers residing in one of these states but employed in Pennsylvania are only required to pay income taxes to their state of residence.

Currently, Pennsylvania has reciprocal agreements with the following states:

Indiana
Maryland
New Jersey
Ohio
Virginia
West Virginia

For residents of these states employed in Pennsylvania, it is essential to complete and submit a REV-419 form to their employer. This form allows the employer to accurately withhold income taxes for the employee’s state of residence, ensuring compliance with the reciprocal agreement.

Pennsylvania Minimum Wage Rates

Pennsylvania’s minimum wage rates align with the federal minimum wage standards. Here is a breakdown of the current rates:

Minimum Wage:
- Pennsylvania Rate: $7.25 per hour
- Federal Rate: $7.25 per hour
Tipped Minimum Wage:
- Pennsylvania Rate: $2.83 per hour
- Federal Rate: $2.13 per hour
Actual Tip Credit:
- Pennsylvania Rate: $4.42 per hour
- Federal Rate: $5.12 per hour

Disclaimer: The content provided on this webpage is for informational purposes only and is not intended to be a substitute for professional advice. While we strive to ensure the accuracy and timeliness of the information presented here, the details may change over time or vary in different jurisdictions. Therefore, we do not guarantee the completeness, reliability, or absolute accuracy of this information. The information on this page should not be used as a basis for making legal, financial, or any other key decisions. We strongly advise consulting with a qualified professional or expert in the relevant field for specific advice, guidance, or services. By using this webpage, you acknowledge that the information is offered “as is” and that we are not liable for any errors, omissions, or inaccuracies in the content, nor for any actions taken based on the information provided. We shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to, use of, or reliance on any content on this page.

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