Payroll Pennsylvania, Unique Aspects of Pennsylvania Payroll Law and Practice

The Pennsylvania State Agency that overseesEmployer's Federal Employer Identification
the collection and reporting of State income taxesNumber (EIN) This information must be reported
deducted from payroll checks is:Department ofwithin 20 days of the hiring or rehiring.
RevenueThe information can be sent as a W4 or
Bureau of Business Trust Fund Taxesequivalent by mail, or fax.
Employer Tax DivisionThere is a written warning penalty for a late
Department 280904report in Pennsylvania, $25.00 for later violations,
Harrisburg, PA 17128-0904and $500 for conspiracy.The Pennsylvania new
(717) 783-1488hire-reporting agency can be reached at
does not have a state form to calculate state888-724-4737 or on the web at does not allow
income tax withholding.Not all states allow salarycompulsory direct depositPennsylvania has no
reductions made under Section 125 cafeteria plansState Wage and Hour Law provisions concerning
or 401(k) to be treated in the same manner aspay stub information.Pennsylvania requires that
the IRS code allows. In Pennsylvania cafeteriaemployee be paid on regular paydays designated
plans are not taxable for income tax calculation ifin advance.Pennsylvania requires that the lag time
used to purchase health or life insurance; taxablebetween the end of the pay period and the
for unemployment insurance purposes. 401(k) planpayment of wages to the employee not exceed
deferrals are taxable for income taxes; taxablefifteen days.Pennsylvania payroll law requires that
for unemployment purposes.In Pennsylvaniaterminated employees must be paid their final pay
supplemental wages are taxed at a 3.07% flatby next regular payday (by certified mail if
rate.You may file your Pennsylvania State W-2semployee requests).Deceased employee's wages
by magnetic media if you choose to.Theof $5,000 must be paid to the surviving spouse,
Pennsylvania State Unemployment Insurancechild, parent, or sibling (in that order).Escheat laws
Agency is:Department of Labor and Industryin Pennsylvania require that unclaimed wages be
Office of Employment Securitypaid over to the state after three years.There is
Seventh and Forster Sts.no provision in Pennsylvania law concerning record
Labor and Industry Bldg.retention of abandoned wage records.Pennsylvania
Harrisburg, PA 17121payroll law mandates no more than 45% of
(717) 787-7613minimum wage may be used as a tip credit.In
State of Pennsylvania taxable wage base forPennsylvania the payroll laws covering mandatory
unemployment purposes is wages up torest or meal breaks are only that minors under 16
$8000.00.Pennsylvania requires Magnetic mediamust have 30 minutes rest after five hours of
reporting of quarterly wage reporting if thework.Pennsylvania statute requires that wage and
employer has at least 250 employees that theyhour records be kept for a period of not less
are reporting that quarter.Unemployment recordsthan three years. These records will normally
must be retained in Pennsylvania for a minimumconsist of at least the information required under
period of four years. This information generallyFLSA.The Pennsylvania agency charged with
includes: name; social security number; dates ofenforcing Child Support Orders and laws is:Bureau
hire, rehire and termination; wages by period;of Child Support Enforcement
payroll pay periods and pay dates; date andDepartment of Public Welfare
circumstances of termination.The PennsylvaniaP.O. Box 2675
State Agency charged with enforcing the stateHarrisburg, PA 17105-2675
wage and hour laws is:Department of Labor and(717) 787-1894
Industry* has the following provisions for child support
Bureau of Labor Law Compliancedeductions:When to start Withholding? First pay
Labor and Industry Bldg., Rm. 1301period after 14 days from service.
Seventh and Forster Sts.When to send Payment? Within 7 days of
Harrisburg, PA 17120Payday.
(717) 787-5279When to send Termination Notice? "Promptly"
minimum wage in Pennsylvania is $5.15 perMaximum Administrative Fee? 2% of payment.
hour.The general provision in PennsylvaniaWithholding Limits? Federal Rules under CCPA.
concerning paying overtime in a non-FLSAPlease note that this article is not updated for
covered employer is one and one half timeschanges that can and will happen from time to
regular rate after 40-hour week.Pennsylvaniatime.Charles J. Read, CPA has been in the payroll,
State new hire reporting requirements are thataccounting and tax business for 30 years, the last
every employer must report every new hire andfifteen in private practice. Mr. Read is the author
rehire. The employer must report the federallyof "How to Start a New Business".For Professional
required elements of:Employee's namePayroll services at a Budget Price go to a
Employee's addressPaperless Payroll Company.Go to For a full service
date of hirepayroll service bureau with CPA's on staff.See an
Employee's social security numberexcerpt of Mr. Read's interviews from William
Employer's nameShatners "Heartbeat of America" television show
Employers addresson the websites linked above.