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United States – Pennsylvania 2022
Day Date Holiday Notes
Saturday Jan-1 New Year's Day
Monday Jan-17 Martin Luther King Day
Monday Feb-21 President's Day
Monday May-30 Memorial Day
Monday Jul-4 Independence Day
Monday Sep-5 Labor Day
Monday Oct-10 Columbus Day
Friday Nov-11 Veteran's Day
Thursday Nov-24 Thanksgiving Day
Friday Nov-25 Thanksgiving Friday
Sunday Dec-25 Christmas Day
Monday Dec-26 Christmas Holiday
Countrypedia

United States – Pennsylvania
Payroll and Benefits Guide

Last updated: Feb 16, 2022
Currency
United States Dollar (USD)
Payroll Frequency
Monthly
Employer Taxes
13.23%- 26.34%

Papaya Offers Complete Payroll, PEO and Contractor Management Services For United States – Pennsylvania

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Overview

Capital
Harrisburg
Currency
United States Dollar (USD)
Date Format
mm/dd/yyyy
Fiscal Year
1 January- 31 December
Public holidays calendar

Contributions

Employer

Employer Payroll Contributions

1.2905% - 9.00% (Maximum taxable wages is 10,000.00 USD)

Unemployment (State)

3.69% (Maximum taxable wages is 10,000.00 USD)

Unemployment- New Employer (State)

6.20% (Maximum taxable wages is 147,000.00 USD)

FICA Social Security (Federal)

1.45% (Maximum taxable wages is 147,000.00 USD) 

FICA Medicare (Federal)

0.60% -6.00% (Maximum taxable wages is 7,000 USD)

FUTA (Federal Unemployment Tax Act)  The FUTA tax rate is 6.0% with a taxable wage base of 7,000 USD. However, if states operate their unemployment insurance programs in compliance with federal law then the FUTA tax is reduced (credit) by 5.4% to 0.6%.

13.23%- 26.34% Total Employment Cost

Employee

Employee Payroll Contributions

0.06% (there is no cap on taxable wages)

Unemployment (State)

6.20% Maximum taxable wages is 147,000.00 USD)

FICA Social Security (Federal)

1.45% (Maximum taxable wages is 147,000.00 USD) 

FICA Medicare (Federal)

0.90%

Additional tax on earnings over 200,000 USD (High-income earners also pay an additional 0.9 percent in Medicare taxes)

7.71% - 8.61%

Employee Income Tax

State Income Tax
3.07%

Flat Tax Rate for single or joint filers. Includes supplemental wage/bonus tax rate

Employee

Employee Income Tax

Federal Income Tax For Single Taxpayers
10.00%

Up to 10,275 USD

12.00%

10,276 USD to 41,775 USD

22.00%

41,776 USD to 89.075 USD

24.00%

89,076 USD to 170,050 USD

32.00%

170,051 USD to 215,950 USD

35.00%

215,951 USD to 539,900 USD

37.00%

539,901 USD or more

Employee

Employee Income Tax

Federal Income Tax For Married Taxpayers (Joint Filing)
10.00%

Up to 20,550 USD

12.00%

20,551 USD to 83,550 USD

22.00%

83,551 USD to 178,150 USD

24.00%

178,151 USD to 340,100 USD

32.00%

340,101 USD to 431,900 USD

35.00%

431,901 USD to 647,850 USD

37.00%

647,851 USD or more

Employee

Employee Income Tax

Federal Income Tax For Heads of Households
10.00%

Up to 14,650 USD

12.00%

14,651 USD to 55,900 USD USD – 54,200.00 USD

22.00%

55,901 USD to 89,050 USD

24.00%

89,051 USD to 170,050 USD

32.00%

170,051 USD to 215,950 USD

35.00%

215,951 USD to 539,900 USD

37.00%

539,901 USD or more

Employee

Employee Income Tax

Standard Deduction and Personal Exemption
Singles

12,950.00 USD

Married Filing Jointly

25,900.00 USD

Head of Household

19,400.00 USD

Payroll

Payroll Cycle

In general, employees are paid semi-monthly and monthly.

Should the payment date be semi-monthly, the employer must make the salary payment within 10 days of the end date of the pay period.

13th Salary

There are no provisions in the law regarding 13th salaries.

Working Hours

General

T.he workweek is a maximum of 40 hours per week or 8 hours per day.

Overtime

Pennsylvania adheres to the Fair Labour Standards Act (FLSA), and work in excess of 40 hours per week is considered overtime and paid at the rate of 150% of the regular pay. If employees are scheduled to work on weekends or rest days, no additional payment is required. However, should an employer request an employee to work in exceptional circumstances on these days, then overtime is paid at the rate of 150% of the regular pay.

Working Week

Monday–Friday

Leave

Paid Time Off

Pennsylvania does not have any state laws that govern paid leave. However, it is common for employers to decide whether to offer paid or unpaid vacation leave.  This must comply with employment law and must be stipulated in the collective bargaining agreements.

Public Holidays

There are 12 public holidays.

Sick Days

Sick leave falls under the Family and Medical Leave Act (FMLA) which provides leave for an employee with a serious health condition that makes them unable to perform the essential functions of their job.

It is common for an employer to follow the FMLA which provides certain employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons (maternity leave, serious illnesses, or if the employee needs to care for a spouse or child).

Employees are eligible for FMLA if they have worked for their employer for at least one year, completed a minimum of 1,250 hours over the past year, and worked at a location where the company employs 50 or more employees within 75 miles.

In addition to the FMLA, in Philadelphia, employers must provide one hour of paid sick leave for every 40 hours worked, up to a maximum of 40 hours of paid sick leave.

In Pittsburgh, employers with less than 15 employees may provide unpaid leave for the first year of employment, increasing to one hour of paid sick leave for every 35 hours worked, up to a maximum of 24 hours of paid sick leave a year.

Maternity Leave

Maternity leave falls under the FMLA (see sick leave) which allows a mother:

  • Twelve working weeks of leave in any one year for a child’s birth and to care for the newborn child within one year of birth.

Paternity Leave

Paternity leave falls under the FMLA (see sick leave), which allows fathers:

  • Twelve working weeks of leave in any one year for a child’s birth and to care for the newborn child within one year of birth.

Parental Leave

Parental leave falls under the FMLA (see sick leave), which allows for:

  • Leave for the adoption or foster care of a child and care for the newly placed child within one year of placement.
  • Any qualifying necessity arising out of the fact that the employee’s spouse, son, daughter, or parent is a covered military member on “covered active duty.”

Other Leave

Leave for the care of an employee’s spouse, child, or parent who has a severe health condition falls under the FMLA (see sick leave).

Alternatively, an employee may take 26 working weeks of leave during a single one-year period to care for a covered servicemember with a serious injury or illness if the eligible employee is the service member’s spouse, son, daughter, parent, or next of kin (military caregiver leave).

Other leave under Pennsylvania law includes:

  • Employers must provide their full-time employees job-protected, unpaid time off from work to perform jury duty, are a witness in a case, responding to a subpoena, or acting as a plaintiff or defendant in the courts. Employees must provide a copy of the jury summons to the employer as evidence of requirement.
  • Employees who are registered to vote receive up to 4 hours of unpaid leave to vote in any municipal, county, state, federal primary, or general election.
  • In addition to the federal USERRA, Pennsylvania law provides protection against discrimination for members of U.S. armed forces, reserves, National Guard, commissioned corps of the public health service, and any other category of persons designated by the president in a time of war or emergency.  It also entitles members of the National Guard or the U.S. armed forces to attend military training for up to 15 days of unpaid leave per year. These members also have reinstatement rights to their former positions if they are still qualified and have satisfactorily completed the training.

Termination

Termination Process

Except in mass dismissals or as provided for in an employment contract or a collective bargaining agreement, U.S. law does not impose a formal notice period to terminate an individual employment relationship, and employment is stipulated as “at will.” This means that either the employer or the employee may end the employment relationship without giving either notice or reason, provided it is not illegal, notable discrimination on the grounds of a category protected by law, etc., and as per the Federal Worker Adjustment and Retraining Notification Act (WARN).

The employment contracts of executives and other highly skilled individuals often incorporate a just cause termination clause which mandates that the employer may only terminate the employee for “cause” and lists the permissible grounds. In such cases, the parties negotiate the foundations for a “just cause” termination.

Notice Period

In Pennsylvania, most employees are employed at will, and either party can terminate the employment relationship without notice. In TexPennsylvania payout of unused vacation time is not required by law. Still, employers will generally pay an employee for unused vacation days, provided the employee gave some advanced notice of resignation.  There is no official notice period. Still, in general practice, two weeks’ notice is a minimum requirement.

In mass dismissal cases the Worker Adjustment and Retraining Notification Act (WARN Act) must be followed, and employers must give 60 days’ notice to impacted employees.

Severance Pay

Except as otherwise provided in an employment contract or collective bargaining agreement, employers are not required to make severance payments to terminated employees. Employers who choose to offer severance would need to have the provisions within the employee’s contract and agreed by both parties. Many employers choose to offer severance pay based on the employee’s length of employment.

Probation Period

No legal provision governs a formal trial or probation period. However, it is common practice for employers to set a performance evaluation after an initially stated period of employment of 90 days.

VISA

VISA

Foreign nationals without permanent resident status or a work visa are not permitted to work in the United States. An employer seeking to hire a foreign national may file a petition with the United States Department of Homeland Security or the United States Citizenship and Immigration Services (USCIS) for an employment visa on behalf of the prospective employee. If the petition is approved, the prospective employee must obtain a visa stamp from a United States embassy or consulate (Canadian citizens are exempt from this requirement).  To get a temporary U.S. work visa, an employer must file a petition with U.S. Citizenship and Immigration Services (USCIS). An approved petition must be part of the visa request.

The types of visas include:

  • H-1B: For applicants with a college degree hired to do specialized work. The visa is valid for three years and can be extended for an additional three years. The visa is connected to the employer that filed the petition. If there is a change of employer, the new employer must repeat the process. There are 65,000 H-1B visas available each year.
  • H-1B1: For applicants with a college degree from Chile and Singapore. The US government grants up to 1,400 visas to Chilean citizens and 5,400 from Singapore each year.
  • H-2A:  For temporary or seasonal agriculture work. It is limited to citizens of qualified countries. Usually valid for up to 1 year and can be extended to a maximum of 3 years.
  • H-2B: For temporary non-agricultural work. These visas are limited to citizens of qualified countries. Usually valid for up to 1 year and can be extended to a maximum of 3 years.
  • L: For intercompany transfers (people transferred from a foreign company to a US branch of the company). The applicant must have been employed at the company for a year before the transfer and work in a managerial level position or higher with specialized knowledge.
  • O: For people with extraordinary abilities in science, arts, education, business, or athletics.

The standard procedure is to obtain a short-term work visa and then apply for an immigrant visa after the employee has started working in the United States.

For those seeking employment-based immigrant visas:

  • E-1: Highest priority employment for those with extraordinary ability in science, arts, education, business, and athletics
  • E-2: For those with advanced degrees or exceptional ability
  • E-3: For skilled workers and professionals, as well as unskilled workers
  • E-4: Members of certain immigrant groups
  • E-5: Immigrant investors in US companies (substantial investment)

Alternatively, an employer may sponsor a potential employee’s application for permanent resident status, referred to as a “green card” if the employee can establish that the potential employee is a multinational executive or manager transferee, has unique skills, or has been offered a job in the United States. The employer must have been unable to recruit a U.S. worker who meets the position’s minimum requirements.

All employers are obligated to verify that all individuals they employ are authorized to work in the United States.

VAT

General

Pennsylvania has a set sales tax rate of 6%, however, in some counties and cities, the sales tax may vary (i.e. Allegheny County is an additional 1% and purchases made in Philadelphia is an extra 2.00%).

Version History

February 16, 2022
Payroll contributions and personal income tax rates have been updated.
Stay up to date on payroll & employment law changes

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