Back Disclaimer

Payroll and Benefits Guide United States – Pennsylvania

Last updated: Mar 03, 2026

Currency
United States Dollar (USD)
Employer Taxes
13.349%-27.029%
Payroll Frequency
Monthly/Semi-monthly.
Employee Costs
8.62%
Capital
Harrisburg
Date Format
mm/dd/yyyy
Fiscal Year
1 January - 31 December
video poster

Contribution

Employer Payroll Contributions
1.41% – 9.69% State Unemployment Insurance (SUI), applied on the first 10,000 USD of an employee’s wages for the calendar year.The applied % varies based on the employer’s experience rating.
3.689% State Unemployment Insurance (SUI) – New Employer, applied on the first 10,000 USD of an employee’s wages for the calendar year.
6.20% Federal Insurance Contributions Act (FICA) - Social Security, applied on salary up to 176,100 USD per year.
1.45% Federal Insurance Contributions Act (FICA)  – Medicare. An additional 0.9% should be withheld from employees earning above 200,000 USD per year.
0.60% – 6.00% Federal Unemployment Tax Act (FUTA), applied on salary up to 7,000 USD per year. Employers who pay their state unemployment tax in full and on time are eligible for a 5.4% tax credit, reducing the FUTA rate to 0.6%.
13.349%- 27.029% Total Employment Cost

 

Employee Payroll Contributions
0.07% State Unemployment Insurance (SUI)
6.20% Federal Insurance Contributions Act (FICA) - Social Security, applied on salary up to 176,100 USD per year.
1.45% Federal Insurance Contributions Act (FICA)  – Medicare.

An additional 0.9% should be withheld from employees earning above 200,000 USD per year.

7.72% – 8.62%    Total Employee Cost
State Employee Income Tax Annual
3.07% Flat Tax Rate for single or joint filers. Includes supplemental wage/bonus tax rate.
Federal Employee Income Tax Annual
Federal Tax – Singles
10.00% Up to 11,925 USD
12.00% 11,925 – 48,475 USD
22.00% 448,475 – 103,350 USD
24.00% 103,350 – 197,300 USD
32.00% 197,300 – 250,525 USD
35.00% 250,525 – 626,350 USD
37.00% Above 626,350 USD
Federal Tax – Married, Joint Filing
0.00% Up to 23,850 USD
12.00% 23,850 – 96,950 USD
22.00% 96,950 – 206,700 USD
24.00% 206,700 – 394,600 USD
32.00% 394,600 – 501,050 USD
35.00% 501,050 – 751,600 USD
37.00% Above 751,600 USD
Federal Tax – Heads of Households
10.00% Up to 17,000 USD
12.00% 17,000 – 64,850 USD
22.00% 64,850 – 103,350 USD
24.00% 103,350 – 197,300 USD
32.00% 197,300 – 250,500 USD
35.00% 250,500 – 626,350 USD
37.00% Above 626,350 USD
Standard Deduction and Personal Exemption
15,000 USD Single
30,000 USD Married Filing Jointly
22,500 USD Head of Household

Minimum Wage

General

Pennsylvania’s minimum wage is the same as the federal minimum wage, which is 7.25 USD per hour.

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

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

Overtime

Pennsylvania adheres to the Fair Labor Standards Act (FLSA), and work exceeding 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.

Leave

Annual Leave (vacation)

Public holidays are not mandatory paid days off, but employers commonly allow workers to take federal holidays as paid days off.

Some companies might also agree to allow workers to take off state holidays; workers can find specific state holiday dates from their local government.

Usually when an agreed public holiday falls on a weekend, a day off in lieu is given on the Friday before or the Monday after the holiday.

Date Day Holiday Notes
1 January 2026 Thursday New Year’s Day Standard holiday
19 January 2026 Monday Dr. Martin Luther King, Jr. Day Standard holiday
16 February 2026 Monday Presidents’ Day Standard holiday
25 May 2026 Monday Memorial Day Standard holiday
19 June 2026 Friday Juneteenth National Independence Day Standard holiday
3 July 2026 Friday Independence Day (Observed) Standard holiday
7 September 2026 Monday Labor Day Standard holiday
12 October 2026 Monday Columbus Day / Indigenous Peoples’ Day Standard holiday
11 November 2026 Wednesday Veterans Day Standard holiday
26 November 2026 Thursday Thanksgiving Day Standard holiday
27 November 2026 Friday Day after Thanksgiving
25 December 2026 Friday Christmas Day Standard holiday

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, employers in Philadelphia 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, if they 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 four 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.

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

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.

An employer’s policy or employee contract governs whether earned or unused vacation is paid on separation. 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) 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 upon 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.

Minimal Statutory Termination Costs 

Some states require PTO balances to be paid out during termination, also any bonuses or commissions that were promised in the employment contract

Immigration

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/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 one year and can be extended to a maximum of three years.
  • H-2B – For temporary non-agricultural work. These visas are limited to citizens of qualified countries. Usually valid for up to one year and can be extended to a maximum of three years.
  • L – For intercompany transfers (people transferred from a foreign company to a U.S. 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.
  • 0 – For people with extraordinary ability 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 employer can establish that the potential employee is a multinational executive/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 State sales tax rate of 6%. Some areas apply an additional Local sales tax of up to 2%.

Stay up to date on payroll & employment law changes

Version History

February 16, 2022
Payroll contributions and personal income tax rates have been updated.
More

Questions & Answers

Subscribe
Notify of
guest
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Download this guide to read later

Payroll and Benefits Guide in United States – Pennsylvania

Download Free Guide

See how Papaya can help you automate your global payroll or EoR whilst staying 100% compliant with local labor laws

While Papaya has made efforts to ensure the accuracy and timeliness of the information provided here, Papaya does not offer any warranties or representations, whether express or implied, regarding its correctness. The information is subject to change without prior notice. Additionally, the content of this publication may be affected by changes in (tax or others) laws in various jurisdictions. None of the information in this publication should be construed as a commercial offer or solicitation, or as a recommendation or any specific transaction. It should not be considered as a substitute for engaging in a legal, tax, financial, investment, or accounting consultancy. Papaya is not responsible for any loss or damage incurred from the use of or reliance on the information provided herein.
Download this guide to read later

Payroll and Benefits Guide
in United States – Pennsylvania

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

Download free guide
exit-popup
All questions are answered by our in-house compliance department working in conjunction with our local in-country partner for this specific country

Public Holidays Calendar

United States – Pennsylvania
Download:
CSV
PDF
ICS
Date Day Holiday Notes
1 January 2026 Thursday New Year’s Day Standard holiday
19 January 2026 Monday Dr. Martin Luther King, Jr. Day Standard holiday
16 February 2026 Monday Presidents’ Day Standard holiday
25 May 2026 Monday Memorial Day Standard holiday
19 June 2026 Friday Juneteenth National Independence Day Standard holiday
3 July 2026 Friday Independence Day (Observed) Standard holiday
7 September 2026 Monday Labor Day Standard holiday
12 October 2026 Monday Columbus Day / Indigenous Peoples’ Day Standard holiday
11 November 2026 Wednesday Veterans Day Standard holiday
26 November 2026 Thursday Thanksgiving Day Standard holiday
27 November 2026 Friday Day after Thanksgiving
25 December 2026 Friday Christmas Day Standard holiday