State guide
How to Register for Pennsylvania Payroll Taxes
Have a dedicated tax manager open your state, local and Philadelphia accounts with you, or use the step-by-step guide below.
Last updated:
At a glance
3.07% flat state withholding
3.8220% newly liable UC rate
Local EIT and LST under Act 32
Philadelphia: register within 30 days
Done for you
State, local and Philadelphia accounts, set up with you
Skip the paperwork. Your dedicated PayAdvisors tax manager registers you with the state and gets your tax IDs for you. In Pennsylvania that includes myPATH, your local EIT collectors and Philadelphia if it applies.
- One named tax manager, reachable directly
- PSD codes and local rates looked up for every worksite and employee
- myPATH, local collector and Philadelphia registrations filed with you
- Every account number and deposit schedule confirmed before payroll
Real, hands-on help from a person who knows Pennsylvania's local tax system. Choose it alone or with managed payroll.
Quick answer
Pennsylvania payroll tax registration at a glance
Pennsylvania splits payroll tax between the state and local tax collectors. One myPATH application sets up your state withholding account with the Department of Revenue and your unemployment compensation (UC) account with the Department of Labor and Industry. Local earned income tax (EIT) and the Local Services Tax (LST) under Act 32 are registered with the local tax collector for each worksite, and Philadelphia runs its own Wage Tax.
State withholding is a flat 3.07%. A newly liable employer pays 3.8220% UC (10.5924% in construction) on the first $10,000 of each worker's wages, and employees contribute 0.07% of all wages with no cap.
Who must register
Who has to register in Pennsylvania
State, local and city rules each apply on their own terms.
| Situation | What Pennsylvania requires |
|---|---|
| You pay compensation to employees working in Pennsylvania | Withhold 3.07% PA personal income tax from residents and nonresidents and file quarterly W-3 returns |
| You have employees in covered employment | Open a UC account, pay employer contributions and withhold the 0.07% employee contribution |
| You have a worksite in Pennsylvania (Act 32) | Withhold local EIT at the higher of the employee's resident rate and the worksite's nonresident rate, plus the worksite's LST, and remit to the worksite's tax collector |
| You are located in Pennsylvania and employ a Philadelphia resident, or anyone who works in Philadelphia | Register with the City of Philadelphia within 30 days and withhold the Wage Tax |
Registration steps
How to register in Pennsylvania
Start with myPATH, then go local.
- File the Pennsylvania Online Business Tax Registration in myPATH. New customers can complete it without logging in. Select employer withholding and Unemployment Compensation, and the application can also capture workers' compensation coverage details.
- Look up every worksite and employee address in the DCED Address Search Application to get PSD codes, EIT rates and LST rates. Save the report.
- Have each employee complete the Residency Certification Form and keep a copy in their file.
- Register with each worksite's local tax collector to get a local tax ID, usually on the collector's website, or with the paper Employer Registration for Local Earned Income Tax Withholding.
- If Philadelphia applies, open a Wage Tax account through the Philadelphia Tax Center within 30 days of becoming an employer of a resident or of someone working in the city. This applies to all employers located in Pennsylvania.
Act 32 is the hard part
One state form, then a local maze
myPATH is quick. The local side means rate lookups, residency forms and a registration with each collector.
On your own
- Comparing resident and worksite EIT rates for each person
- Registering with separate local tax collectors
- Tracking Philadelphia on its own calendar
With your PayAdvisors tax manager
- Your tax manager runs every address lookup with you
- We file each local registration and follow it up
- You get one list of accounts and due dates
Handled by your tax manager.
Prepare
What to collect before you start
Addresses drive the local side.
- Business identity details for myPATH: legal name, FEIN, entity type and start date
- Every Pennsylvania worksite address, including employees who work from home
- Each employee's home address for the resident EIT rate
- Whether anyone lives or works in Philadelphia
- Your expected quarterly state withholding, which sets your deposit schedule
Accounts
What you end up with
Plan on several IDs, not one.
- A Revenue withholding account on a quarterly, monthly, semi-monthly or semi-weekly deposit schedule.
- A UC account with the newly liable contribution rate.
- A local tax ID from the tax collector for each worksite's tax collection district.
- A Philadelphia Wage Tax account, if the city applies.
2026 numbers
Pennsylvania payroll tax rates for 2026
State rates are fixed. Local EIT and LST rates vary by address.
| Item | 2026 figure |
|---|---|
| PA personal income tax withholding | 3.07% flat |
| Newly liable UC rate, non-construction | 3.8220% |
| Newly liable UC rate, construction | 10.5924% |
| UC taxable wage base | First $10,000 per employee |
| Employee UC withholding | 0.07% of gross wages, no wage cap |
| Experience-based UC range | 1.4190% to 10.3734%, including the 9.2% surcharge and the 0.60% Additional Contributions tax |
| Local Services Tax | Capped at $52 per person per year; rates above $10 require a low-income exemption under $12,000 |
| Philadelphia Wage Tax (from July 1, 2026) | 3.735% residents, 3.425% nonresidents |
Pitfalls
Pennsylvania mistakes to avoid
Local withholding causes most first-year notices.
- Withholding only the home-city EIT rate. Act 32 requires the higher of the resident rate and the worksite's nonresident rate.
- Taking LST in one lump. If the combined LST is over $10, collect it pro rata across pay periods.
- Ignoring the LST exemption certificate. Stop withholding LST when an employee gives you an exemption certification.
- Forgetting home-based workers. DCED counts the residence of a home-based employee as a worksite.
- Waiting on Philadelphia. The city gives you 30 days to register and no longer takes paper Wage Tax returns.
Related duties
Other Pennsylvania employer obligations
Separate programs, same start date.
- Workers' compensation. Coverage is mandatory once you employ at least one employee, unless every employee falls under a statutory exclusion. See LIBC-200.
- New hire reporting. Report new and rehired employees to the Pennsylvania New Hire Reporting Program within 20 days of their first day of paid work.
- Minimum wage. $7.25 an hour, with overtime at one and a half times the regular rate after 40 hours in a week for most employees.
Filing calendar
Pennsylvania deadlines after registration
Four different filers expect to hear from you.
- State withholding deposits: quarterly under $300 a quarter, monthly by the 15th for $300 to $999, semi-monthly within three banking days for $1,000 to $4,999.99, and semi-weekly at $5,000 or more.
- W-3 quarterly return and REV-1667 annual reconciliation: with W-2s; 10 or more income statements must be filed through myPATH.
- Local EIT and LST: quarterly returns and payments within 30 days after each quarter, and the W2-R annual reconciliation by the last day of February.
- Philadelphia Wage Tax: quarterly returns on the Philadelphia Tax Center (Q3 2026 is due October 31), with payments quarterly, monthly, semi-monthly or weekly by amount withheld. No separate annual reconciliation.
- UC: quarterly wage and tax reports to Labor and Industry.
Official links
Pennsylvania agency links
Official forms, rates and guidance.
Pennsylvania registration questions
How do I register for Pennsylvania payroll taxes?
Use the Pennsylvania Online Business Tax Registration in myPATH for state withholding and UC, then register with the local tax collector for each worksite, and with Philadelphia if it applies.
What is Act 32?
The statewide system for local earned income tax. Employers withhold EIT at the higher of the resident and worksite rates and remit to the worksite's tax collector.
How do I find the right local rates?
Use the DCED Address Search Application to get PSD codes plus EIT and LST rates for each address.
What is the Local Services Tax?
A per-person local tax capped at $52 a year. When the combined rate is over $10, it is collected across pay periods and people earning under $12,000 there are exempt.
Who has to withhold Philadelphia Wage Tax?
All employers located in Pennsylvania that employ Philadelphia residents, or nonresidents who work in Philadelphia. Register within 30 days; the rates from July 1, 2026 are 3.735% for residents and 3.425% for nonresidents.
Do employees pay unemployment tax in Pennsylvania?
Yes. Employees contribute 0.07% of gross wages, with no cap, and you withhold it.
I am the only employee of my S corporation. What do I need in Pennsylvania?
If you take wages, you need state withholding, a UC account and local EIT and LST for your worksite, which can be your home office. A dedicated tax manager can work through the state and local pieces with you as part of our S corp payroll package.
Is workers' compensation required for one employee?
Yes, unless every employee is excluded under Pennsylvania's workers' compensation law.
How is registration priced?
Most states issue two IDs, one for withholding and one for unemployment insurance. Pricing depends on the states and accounts involved. We'll quote it on a quick consultation.
Is this tax advice?
No. This guide summarizes official Department of Revenue, Department of Labor and Industry, DCED and City of Philadelphia material. For your own facts, ask your CPA or tax advisor.
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Next step
Let us set up Pennsylvania with you
A dedicated tax manager covers myPATH, every local tax collector and Philadelphia if you need it, confirms each account and leaves you with a single deposit and filing calendar. Share your worksite and employee addresses and we will do the lookups.
About this guide
Last verified and sources
Last verified October 26, 2026 against the Pennsylvania Department of Revenue, Department of Labor and Industry, Department of Community and Economic Development and the City of Philadelphia. This guide is general information, not tax or legal advice.
Related
- State payroll tax registration (all states)
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- Oklahoma payroll tax registration guide
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- Iowa payroll tax registration guide
- Kansas payroll tax registration guide
- Arkansas payroll tax registration guide
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- West Virginia payroll tax registration guide
- Delaware payroll tax registration guide
- Payroll setup for new businesses
- Payroll tax filing and compliance
- S corp payroll
- S corp payroll setup checklist
Sources
- Pennsylvania Department of Labor and Industry, UC Tax
- Pennsylvania Department of Labor and Industry, UC Yearly Tax Highlights
- Pennsylvania Department of Labor and Industry, UC Employee Withholding
- Pennsylvania Department of Revenue, Register My Business for Taxes
- Pennsylvania Department of Revenue, Employer Withholding
- Pennsylvania DCED, Local Income Tax Requirements for Employers
- Pennsylvania DCED, Local Withholding Tax FAQs
- Pennsylvania DCED, Local Services Tax
- Pennsylvania DCED, Address Search Application (PSD codes, EIT and LST rates)
- City of Philadelphia, Wage Tax (employers)
- Pennsylvania Department of Labor and Industry, LIBC-200 Employer Information (workers' compensation)
- PA CareerLink, Report New Hires
- Pennsylvania Department of Labor and Industry, Wage FAQs