...
Summary of differences between federal and state regulations
Income tax withholding
Pennsylvania requires withholding of personal income tax from compensation of resident employees for services performed either within or outside Pennsylvania, and from wages of nonresident employees for services performed within Pennsylvania. Every employer paying compensation subject to withholding must withhold Pennsylvania Personal Income Tax from each payment of taxable compensation to his employees.
If you have employees that are residents of another state, you may withhold state income tax for your employee's resident state, if they are residents of a reciprocal state. Pennsylvania has reciprocal agreements with six states: Indiana, Maryland, Ohio, New Jersey, Virginia, and West Virginia. Unless your employee is a resident of one of these states, you should withhold Pennsylvania Personal Income Tax.
Unemployment taxes
All states finance UC primarily through contributions from subject employers on the wages of their covered workers. In addition, three states (Alaska, New Jersey, and Pennsylvania) collect contributions from employees. These taxes are deposited by the state to its account in the UTF in the Federal Treasury, and are withdrawn as needed to pay benefits.
Many states have adopted a higher tax base than what is provided in FUTA. Hawaii's wage base is usually higher and changes periodically. In all states, an employer pays a tax on wages paid to each worker within a calendar year up to the amount specified in state law. In addition, most of the states provide an automatic adjustment of the wage base if federal law is amended to apply to a higher wage base than that specified under state law. As a result of the many variables in states taxable wage bases and rates, benefit formulas, and economic conditions, actual tax rates vary greatly among the states and among individual employers within a state.
Wages subject to unemployment tax in this state equal $8,000.
Minimum and maximum rates in this state are 0.3 and 9.2 %. Rates apply to experience rated employers only and do not include applicable surtaxes or penalties.
If an employer provides one or more paid leaves of absence to employees for the specific purpose of organ or bone marrow donation, the employer will qualify for the organ or bone marrow donor tax credit. (See HB 153)
State
Contacts
Income tax withholding
Department of Revenue
Unemployment taxes
Department of Labor and Industry
Regulations
Income tax withholding
PA Code Title 61 Chapter 113 Withholding Of Tax
Unemployment taxes
Unemployment Compensation Regulations