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Version: 1.7.3

Pennsylvania Payroll Tax Compliance

Employers in Pennsylvania must meet three key payroll compliance obligations: state income tax withholding, unemployment insurance (UI), and new hire reporting.

Each requirement comes with its own forms, deadlines, and reporting rules established by state agencies. The sections below provide a clear overview of these obligations.

Pennsylvania Withholding Tax Requirements​

Pennsylvania employers are required to withhold state income tax from employee wages and file returns with the Pennsylvania Department of Revenue.

Forms required​

Form PA-W3​
  • Filed annually with the Pennsylvania Department of Revenue on January 31 for the previous calendar year.
  • Used to reconcile the total state income tax withheld with amounts reported during the year.

TaxBandits API supports the automation of Form PA-W3. See how it works

Form REV-1667​
  • Filed annually with the Pennsylvania Department of Revenue .
  • Used to reconcile total withholding with payments made to the state.
Federal Form W-2 (State Copy Submission)​
  • Employers must submit state copies of federal W-2 forms.
  • Submitted annually along with reconciliation reporting.

Pennsylvania Unemployment Insurance (UI) Requirements​

Employers are liable for Pennsylvania unemployment compensation taxes, administered by the Pennsylvania Department of Labor & Industry.

The state requires quarterly reporting using the following forms:

Form UC-2​
  • Filed quarterly on April 30, July 31, October 31, and January 31.
  • Used to report wages and contributions.
  • Employers must file even if no wages were paid (zero wage reports).
Form UC-2A​
  • Filed quarterly along with UC-2
  • Used to report employee-level wage information.

Pennsylvania New Hire Reporting​

Employers must report all newly hired and rehired employees to the Pennsylvania New Hire Reporting Program. This reporting supports the enforcement of child support orders and the detection of fraud.

Employers must submit new hire reports within 20 days of the employee's hire date.