Pennsylvania Paycheck Calculator

Use the Pennsylvania Paycheck Calculator to estimate net or “take home” pay for salaried employees. Simply input salary details, benefits and deductions, and any other necessary information as prompted below, and let our tool handle the rest.

What Are Payroll Taxes?

Payroll taxes withheld from employee paychecks fund Social Security and Medicare, to which the employer also makes payroll tax contributions.

The Social Security tax is paid by the employee and the employer at a rate of 6.2% of the employee’s wages. The Medicare tax is also paid by both employee and employer, but at a rate of 1.45%.

Employers are also required to pay taxes under the Federal Unemployment Tax Act (FUTA) and the State Unemployment Tax Act (SUTA). The employer must also collect federal income tax from employee paychecks, and pay that amount to the IRS. The rate is determined by the employee’s tax bracket.

Each state also has specific state payroll taxes that must be withheld and paid.

Pennsylvania Payroll Taxes

There are two Pennsylvania employer payroll taxes to keep track of in addition to Social Security and Medicare. 

Employers contribute to a state unemployment tax account (SUTA) and employees pay state income tax. 

SUTA

Under SUTA, companies must allocate a portion of their payroll taxes toward the state’s unemployment program, which pays out benefits to the unemployed until they find a new job or the predetermined benefit runs out.

All businesses in Pennsylvania are required to pay SUTA taxes. The current taxable wage base is $10,000, with average rates ranging from 1.2905% to 9.9333%. New businesses in Pennsylvania are assigned a SUTA tax rate of 3.6890%. If you are a construction company, you’re assigned a rate of 10.2238%.

Find more information on the Pennsylvania Office of Unemployment Compensation website. 

State Income Tax

The state income tax withholding rate for all employees in Pennsylvania is a flat rate of 3.07%, as detailed on the Pennsylvania Department of Revenue website. 

Paying Payroll Taxes

Just as you need an EIN to pay federal payroll taxes, in Pennsylvania you’ll need to register to pay state withholdings and SUTA taxes with the Department of Revenue.

SUTA taxes are due quarterly. Withholding taxes depend on the following criteria:

• Total withholding is under $300 per quarter: taxes are due the last day of April, July, October, and January.
• Total withholding is $300 to $999 per quarter: taxes are due the 15th day of the following month.
• Total withholding is $1,000 to $4,999.99 per quarter: taxes are due within three banking days of the close of the semi-monthly period.
• Total withholding is $5,000 or greater per quarter: taxes are due on the Wednesday following the pay date for employers with pay dates on Wednesday, Thursday, or Friday; and on the Friday following the pay date for employers with pay dates on Saturday, Sunday, Monday, or Tuesday.

If your business is located in either Philadelphia or Pittsburgh, you will need to register to pay city-specific taxes. Alternatively, your municipality may require certain tax registrations, so be sure to check with your local government for requirements.

Using a Payroll Tax Service

In Pennsylvania, payroll and payroll taxes come with countless laws and restrictions, which is why many business owners turn to a payroll service provider to ensure their business remains fully compliant. It’s usually less expensive than creating a new staff position for managing payroll, and relatively easy.

You’ll just send over your digital timesheets and relevant information, and the service provider will take care of the calculations, payments, and taxes, freeing you up to focus on growing your business. 

We highly recommend hiring a payroll service — as a busy entrepreneur, you won’t regret it!