Pennsylvania New Employer Information
Federal and State Tax Accounts
Federal Tax Accounts:
- Apply for an EIN (Employer Identification Number) with the IRS online.
- The IRS will assign you a unique nine-digit number to identify your business. To read more about applying for an EIN, read our help article, “Your Step-by-step Guide on How to Apply for EIN.”
- Although it is not required, we suggest you register for the EFTPS (Electronic Federal Tax Payment System).
- The Electronic Federal Tax Payment System (EFTPS) is an easy way to pay your federal taxes online or view any tax filings made on your behalf by Patriot’s payroll services.
- To find out more about EFTPS, please read our article, “What Is EFTPS?”
State of Pennsylvania Tax Accounts:
- Pennsylvania new employers will need to register their business with the state of Pennsylvania to obtain both:
- State Income Tax (SIT) account with the Department of Revenue for payroll withholding taxes
- State Unemployment Insurance (SUI) account with the Department of Labor and Industry for unemployment taxes
- You can register online through myPATH to register your business with the department. For tax-specific registration assistance, contact the state at (717) 787-1064.
- SUTA is the state unemployment tax assessment assigned to businesses to fund state unemployment funds.
- The total Pennsylvania new employer SUTA contribution rate for 2023 is 3.8220% (non-construction employers) and 10.5924% (construction employers). This amount increases or decreases based on the Surcharge adjustment. You can find more information on Pennsylvania’s Office of Unemployment Compensation website.
- Employers in Pennsylvania will receive a new State Unemployment Tax Assessment (SUTA) rate every year.
- To learn more about SUTA please read our article, “What Is SUTA Tax?”
- Pennsylvania has many local taxes. Be sure your small business has registered for any local taxes your business is affiliated with by checking with local tax agencies. New employers can fill out this form to register as an employer.
- Pennsylvania has set up several Tax Agents to handle the local Earned Income Tax (EIT). You will need to register with the correct Tax Agents for your EIN (Employer Identification Number) based on your locality.
- Click here to find your Tax Agent.
- If you don’t know your local municipality, you can click here, or read the PA Department of Revenue article: “How do I find out where to file and pay my local taxes?”
- For more information about registering as an employer please visit Pennsylvania Department of Community and Economic Development, Local Income Tax information Employers/Payroll Providers section.
Setting Up Your New Employee:
- Fill out the required Form I-9 for employee verification for working in the USA.
- The employee will complete the first section of Form I-9 and the second section is completed by the employer.
- You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information, please read, “Form I-9 In a Nutshell”
- Employees need to fill out the federal Form W-4, Employee’s Withholding Certificate for both federal and Pennsylvania income taxes.
- For more information, read our help article, “Updates to the Income Tax Withholding Tables and What You Need to Know.”
- Pennsylvania employees are required to complete a Residency Certification Form upon hire (and with any subsequent change in address) to confirm the PSD Codes and EIT Rates being used by the employer for the employees’ local taxing purposes.
- You will need to save this form along with your other employee information.
- You can learn more on the PA Department of Community and Economic Development website.
- Pennsylvania’s minimum wage is $7.25 per hour.
- By law you are required to post the minimum wage poster for your employees where they can read it.
Once you have all the necessary information, you will be able to set up your payroll for your business.
You will want to keep all payroll records for at least three years. For more information, please read our help article, “What Employers Should Know About Employee Payroll Records.”
Let us know if you have any questions. We are here to help!
Disclaimer: This is not an all-inclusive list for new employers. Please visit appropriate federal, state and local government websites for more information.
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