Make employment in Pennsylvania easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Pennsylvania, all in one easy-to-use platform.
As the scene of the signing of the Declaration of Independence and the birth of the American steel industry, Pennsylvania is a place where tradition and progress has always co-existed.
From the rolling hills of the Poconos to the bustling streets of Philadelphia and Pittsburgh, the Keystone State seamlessly blends natural beauty with urban vitality. And with a diverse range of industries, prestigious universities, and a famed work ethic, Pennsylvania is a sought-after location for both employers and talent alike.
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In Pennsylvania, workers’ rights are protected by numerous employment and labour laws, at both the state and federal level. As a result, employees enjoy protection from discrimination based on age, religion, sexual orientation, gender, and race.
Here are the key things you need to know about hiring in Pennsylvania.
Work and overtime laws in Pennsylvania are overseen by the state’s Department of Labour.
Full-time employment is considered to be between 30 and 40 hours per week.
Under the federal Fair Labour Standards Act, non-exempt employees are entitled to overtime pay of 1.5x their regular pay rate if they work more than 40 hours in a week.
Employees are generally (but not always) exempt from overtime if they:
Earn more than the specified state or federal exemption threshold
Perform a role with duties that are
Work in a certified or licensed profession, such as law, accounting, architecture, or engineering
In Pennsylvania, the salary threshold for exemption is currently $684 per week, which is the federal minimum.
Note that the federal salary threshold for exemption is currently being reviewed in the US.
The minimum state wage for private sector employees is currently $11 per hour, although rates are higher in certain areas, such as Philadelphia.
We can help you get your new employee started in Pennsylvania fast. Note that our minimum onboarding time (MOT) is dependent upon registration with the local authorities, and begins after the employee has submitted all the required information on the Remote platform.
For non-citizens of the US, a work eligibility assessment may be required, and can add three extra days to the onboarding time. If a follow-up is needed, there may be additional delays.
Please note that payroll cut-off dates can impact the actual first day of employment. Remote’s payroll cut-off date is the 10th of the month, unless otherwise specified.
Under state law, employers are entitled to designate the pay day.
For Remote customers, employee payments are made twice per month in equal installments, payable in arrears. The first payment is made on the 15th of the month and the second payment is made on the final day of the month. If relevant, bonus payments, commissions, and expense reimbursements are included in the second payment of the cycle.
Remote can help you craft a competitive benefits package to attract and retain the best global talent. Our benefits experts understand the trends, requirements, and expectations of the Pennsylvania labour market, allowing your employees to feel appreciated and thrive.
Our benefits packages in Pennsylvania usually include some or all of the following:
Under the federal Affordable Care Act, organisations with a headcount of 50 or more must offer statutory health insurance to their full-time employees.
Many employers also offer some level of supplemental health insurance. While this can lead to a relative rise in employment costs, it’s an essential benefit that ensures your people have access to routine care and are covered in the event of an emergency.
Because Remote is the employer of record (EOR), it’s important for us to offer the same core benefits to all employees to ensure fair and non-discriminatory hiring practices. This protects both your business and ours.
Note that we do not add a markup on any benefits premiums or administration costs.
No. Organisations are not currently required to offer a 401k retirement plan (or any other type of savings plan) to their employees. However, they may choose to offer this benefit as part of their overall compensation package.
Pennsylvania, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Pennsylvania may lead to fines and penalties for the offending company.
Employment taxes and statutory fees affect both your payroll and your employees' paychecks in Pennsylvania. Note that your employees may be liable for additional local taxes.
Employer taxes
0%
Federal unemployment insurance tax (FUTA) (charged on the first $7,000 an employee earns per year)
0.00% to 10.37%
State unemployment insurance tax (SUTA)
0.0%
FICA (Social security)
0.00%
FICA (Medicare)
Employee taxes
0% to 37%
Federal income tax
0.00%
State income tax
0.0%
FICA (Social security)
0.00%
FICA (Medicare)
In Pennsylvania, there is no state or federal law that requires employers to provide paid or unpaid vacation leave to their employees. However, many employers offer 10 days of paid leave after the first year of employment.
Only Philadelphia, Pittsburgh, and Allegheny County have state-mandated sick leave laws. Sick leave in Philadelphia Companies with fewer than 10 employees must grant one hour of unpaid sick leave for every 40 hours worked (up to 40 hours). Companies with 10 or more employees must grant one hour of paid sick leave for every 40 hours worked (up to 40 hours). Sick leave in Pittsburgh Companies with fewer than 15 employees must grant one hour of paid sick leave for every 35 hours worked (up to 24 hours). Companies with 10 or more employees must grant one hour of paid sick leave for every 35 hours worked (up to 40 hours). Sick leave in Allegheny County Companies with 26 or more employees must grant one hour of paid sick leave for every 35 hours worked (up to 40 hours). Can an employer deny sick time in Pennsylvania? Under the federal Family and Medical Leave Act (FMLA), eligible employees are entitled to up to 12 weeks of unpaid sick leave per year, provided they: Have worked for the same employer for at least 12 months Work in a location where at least 50 people are employed by the company within a 75-mile radius
Under the FMLA, employees are entitled to up to 12 weeks of unpaid maternity or paternity leave. Some organisations opt to pay a reduced salary during this period.
Employers are not legally required to provide bereavement leave to their employees, although most organisations offer unpaid leave.
Like nearly all US states, Pennsylvania is an “at-will” state. This means both employers and employees can end the employment relationship without reason, provided it is legal.
Remote’s legal experts can help you navigate terminations to ensure employees are only let go fairly, negating any potential legal complications.
Employers and employees are not required to provide notice of termination, unless otherwise stated in the employment contract.
Despite this, it's usually customary for employees to provide two weeks' notice when leaving an organisation.
Employers are not legally required to provide severance pay (unless it is stipulated in the employee's contract or in the company policy).
Employers are also not required to pay any accrued but unused vacation time, unless stipulated in the employment agreement.
There is no requirement to provide a probation period for employees, although many companies implement internal probation policies. These policies typically involve a formal performance evaluation after a specified period, such as three or six months.
Pennsylvania has a diverse economy supported by industries such as healthcare, finance, manufacturing, and technology. With state-specific payroll regulations, including a progressive state income tax, local tax requirements, and workers’ compensation mandates, employers in Pennsylvania must ensure compliance with both state and federal payroll laws. Understanding these regulations is crucial for smooth payroll operations and compliance.
Employers in Pennsylvania must adhere to both federal and state payroll regulations regarding wages, taxes, and benefits. Below is an overview of key payroll components:
Minimum wage: Pennsylvania follows the federal minimum wage of $7.25 per hour, as the state has not set a higher minimum wage.
Overtime rules:
Pennsylvania has a flat state income tax rate of 3.07%.
Employers must withhold state income tax and remit it to the Pennsylvania Department of Revenue.
Local income tax: Many cities and municipalities impose an Earned Income Tax (EIT), which employers must also withhold and remit.
Hiring contractors in Pennsylvania can be a strategic and cost-effective way for businesses to complete projects without the obligations of hiring full-time employees. Whether you are engaging independent contractors for specialized services or bringing in subcontractors for labour-intensive projects, understanding Pennsylvania's laws and federal regulations is essential.
Remote helps businesses stay compliant when hiring contractors globally with these key features:
Global compliance support : Ensures adherence to labour laws in 200+ countries with localized contracts and proper documentation.
Misclassification protection : Includes built-in compliance checks and seamless contractor-to-employee conversion.
Centralized documentation : Maintains essential records for audits and automates tax filings, such as 1099s for U.S. contractors.
Legal expertise : Provides guidance on complex local labour laws, simplifying international hiring.
Remote’s streamlined approach minimizes compliance risks and simplifies contractor management for businesses.
Remote simplifies contractor payments with:
Our employer of record (EOR) service enables you to hire, manage, and pay top talent in Pennsylvania with speed and simplicity.
Remote’s EOR allows your company to legally hire employees in any country or US state — including Pennsylvania — wherever your business is based, without having to set up a local legal entity.
On paper, Remote is the official employer, and we handle compliance, payroll, benefits (including equity), and other HR processes — but you maintain full control over the hire’s day-to-day management and work responsibilities. Learn more.
An EOR may be ideal if your company:
Needs to hire employees in Pennsylvania but doesn’t want to establish a legal entity there
Is testing local markets before committing to a full business expansion
Wants to ensure full compliance with federal, state, and local employment laws and tax requirements
Needs a fast, cost-effective way to onboard employees in the state
Needs a temporary hiring solution before establishing a legal entity
Pennsylvania offers a strategic location, diverse talent pool, and a strong economy driven by healthcare, education, manufacturing, and logistics. Whether you’re a startup expanding across the northeast or an SMB ready to build a distributed team, managing HR, payroll, and compliance across state lines can quickly become overwhelming. That’s where a professional employer organisation (PEO) can help.
A professional employer organisation (PEO) is a third-party provider that helps businesses handle key HR functions. These typically include payroll, benefits administration, tax filings, and employment law compliance. With a PEO, your business enters into a co-employment relationship, meaning the PEO takes on the administrative and legal tasks related to employment — while you retain full control over day-to-day management of your team.
For small to midsize companies, a PEO can provide enterprise-grade HR services without the cost or complexity of building an in-house department.
As mentioned, a PEO operates through a co-employment model, which requires your company to be registered and operating in Pennsylvania.
In contrast, an employer of record (EOR) acts as the legal employer on your behalf. EORs are typically used for hiring in states (or countries) where your business doesn’t yet have a legal presence. If you’re hiring your first employee in Pennsylvania and don’t yet have an entity or tax setup, an EOR may be a better fit initially.
Working with a PEO in Pennsylvania offers several advantages, such as:
$29
per employee/month
Robust, transparent international payroll
Easy self-service platform
Tailored support delivered by dedicated specialists
Comply with local payroll regulations in each country
Unified benefits management
HR Core included as standard
$29
per contractor/month
Only incur charges for contractors you actively work with
Collaborate with contractors across the globe
Draft, amend and sign customised, localised contracts
Approve contractor invoices with one click or enable auto-pay
Clear payments with complete visibility
Includes HR Core by default
$699
per employee/month
Engage talent in 90+ countries without establishing a local entity
Onboard new hires with a dedicated specialist
Local payroll processed and paid punctually, every time
Compliance protections integrated by default
Localised, flexible and competitive benefits
In-house experts dedicated to local support
HR Essentials included as standard
Employees must report for jury duty if summoned (unless exempt). Jurors are typically “on call” for two weeks. Do employers have to pay for jury duty in Pennsylvania? No. Private sector employers are not required to pay employees on jury service, but they must provide unpaid leave, and cannot penalize or terminate an employee on jury duty. Some employers provide paid leave.
Under state and federal law, employers must grant leave to employees who are members of the military or the National Guard for military duty or training. These employees have the right to take time off for their military obligations, and employers are prohibited from discriminating against them based on their military service.
The UI wage base in Pennsylvania is $10,000.
UI tax rates vary based on an employer’s experience rating and range from 1.42% to 9.93%.
New employers typically pay a 3.5% UI tax rate.
Pennsylvania law requires all employers with at least one employee to carry workers’ compensation insurance to cover medical expenses and lost wages for employees injured on the job.
Employers can obtain coverage through a private insurer, self-insurance, or the Pennsylvania State Workers’ Insurance Fund (SWIF).
Employers must register for a Pennsylvania Employer Account Number with the Pennsylvania Department of Revenue.
State withholding tax returns must be filed semi-monthly, monthly, or quarterly, depending on employer classification.
UI tax reports must be submitted quarterly to the Pennsylvania Department of Labour & Industry.
Payroll tax payments can be made electronically through the Pennsylvania e-TIDES system (which is transitioning to myPATH).
State minimum wage compliance: Pennsylvania follows the federal minimum wage of $7.25 per hour, though cities like Philadelphia have enacted higher minimum wage ordinances for city-contracted workers.
Final paycheck rules:
New hire reporting: Employers must report new hires to the Pennsylvania New Hire Reporting Program within 20 days.
Paid sick leave: Pennsylvania does not have a statewide paid sick leave law, but Philadelphia and Pittsburgh require certain employers to provide paid sick leave.
Payroll recordkeeping: Employers must maintain payroll records for at least three years to comply with state and federal laws.
Right-to-work state: Pennsylvania is not a right-to-work state, meaning employees may be required to join a union if applicable.
Managing payroll in Pennsylvania requires careful attention to state-specific regulations, including minimum wage compliance, UI tax requirements, and workers’ compensation laws. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.
The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be, book a demo with Remote today.
Automated processing : One-click approvals, bulk payments, recurring invoices, and real-time tracking.
Global coverage : Payments in 200+ countries, multiple payment methods, and currency flexibility.
Cost and compliance : Fair price guarantee (pay only for active contractors), built-in compliance with regional regulations, and localized contracts.
Learn more about how Remote simplifies contractor management in Pennsylvania — get started for free today.
Key benefits of hiring through our EOR in Pennsylvania include:
Faster market entry . You can hire talent quickly, without having to wait months to establish a local entity.
Full compliance with local employment laws . Avoid the legal risks associated with non-compliance and misclassification.
Simplified payroll management . We automate payroll tax calculations and ensure you are fully compliant with all federal, state, and local withholding obligations, even when laws change.
Lower costs. Setting up a legal entity in Pennsylvania can be costly and time-consuming. An EOR eliminates the need for entity registration, reducing overhead expenses.
Fewer resources required. With HR, payroll, and compliance managed by the EOR, your company can concentrate on scaling operations and assigning your resources elsewhere.
It’s also crucial to note that, at Remote, we own all our own legal entities. As a result, we don’t need to rely on third parties, which can incur delays and extra costs, and result in a negative employee experience. All our EOR services — including the dedicated support of our local specialists — are provided in-house.
To learn more — and to see our EOR platform in action — book a demo with one of our friendly experts today.
Compliance with state employment laws and tax regulations
Access to affordable, competitive employee benefits packages
Reduced administrative burden around payroll and HR documentation
Simplified onboarding, performance tracking, and employee offboarding
Minimized risk around misclassification, workplace policies, and employee relations
Pennsylvania employers must also navigate unique state laws, including workers’ compensation requirements and specific tax obligations. Remote’s PEO helps you stay compliant while keeping your HR operations lean and efficient.
To partner with a PEO in Pennsylvania, your business must have a registered legal entity in the state. Once that’s in place, our PEO service takes on your HR administration tasks such as running payroll, administering benefits, and filing local and federal taxes.
Remote’s PEO services integrate seamlessly into your operations, whether you're hiring your fifth employee or your 50th. You maintain full control over how your team works while we handle the operational complexities behind the scenes.
If your company is legally established in Pennsylvania and you're looking for a scalable way to manage HR, a PEO is an ideal solution. You’ll gain access to expert support, reduce your compliance risk, and free up time to focus on growth.
If you're just entering Pennsylvania and don’t yet have a legal entity, consider starting with an EOR and transitioning to a PEO as you scale.
Remote makes it easy to manage HR, payroll, and compliance across all 50 states. Learn more about our PEO services and how we can support your team’s growth in Pennsylvania.