Pennsylvania has more than one type of employer tax rate, but determining your business’s rates can be difficult. Below, you will find a PA employer withholding guide to figure out just how much you should withhold and pay in the form of Unemployment Contribution taxes.
The Pennsylvania Department of Revenue has a helpful Employer Withholding Information Guide, which provides general information about withholding personal income tax in the state. This is an excellent resource for employers who want information about your withholding requirements, tax collection, withholding calculation, and paying withheld taxes. That said, there is not much information about calculating withholding; it provides only the current personal income tax percentage rate, 3.07%. There are no mentions of the PA SUI rate and anything to do with unemployment insurance. That said, this PA employer withholding guide is a great place to start if you have questions about the PA withholding tax rate.
Current Tax Rates in Pennsylvania
The PA Employer Withholding Guide provides information about the personal income tax percentage rate, but what about the other taxes employers should understand? The Pennsylvania Department of Revenue has a separate resource for these taxes. See their Current Tax Rates guide to look up any tax you might need to know – from Inheritance and Estate Tax to PA Sales Tax.
Unemployment Tax Rates in Pennsylvania
No PA employer withholding guide is complete without a mention of the state’s unemployment compensation rates. At the end of each calendar year, a Contribution Rate Notice, Form UC-657, is mailed to employers to show the rate effective for the upcoming year. The percentage is applied to taxable wages and determine the amount of employer contributions due. If you wish to appeal your UC tax rate, you can file a written appeal within 90 days of the mailing date.
As in most state, the Pennsylvania Unemployment Compensation rate differs between businesses. There are standard rates for positive reserve account balances, negative reserve account balances, construction businesses, non-construction businesses, and an experience-based rate. For more information about your business’s US rate, check the State’s Office of Unemployment Compensation resource, a PA employer withholding guide in and of itself.
Figuring Out Your Employer Withholding Forms with AMS
Once you’ve determined your appropriate tax rates, it’s time to fill out the actual forms. There is a range of employer withholding forms you will need to understand. Employers can find a full list on the Pennsylvania Department of Revenue’s website. When you determine which forms are necessary, AMS Payroll ($129) and our Forms Filer Plus ($49) are excellent resources for completing this process.
If you’re unsure how a semi-automated payroll software can assist with withholding and forms filing, see below for a list of highlighted software features.
- Imports data from QuickBooks, Excel, PeachTree, and Tab-Delimited Text Files
- Prints checks individually or by date range
- Creates an SSN Verification file
- Automatically calculates federal, state and local payroll taxes
- Easy Payer and Employee Setup
- Automatic saving feature ensures data is never lost
- Support for end-of-year reporting, tax form preparation, and electronic filing
- Back-end data hosting feature allows users to generate and store critical payroll information
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