Pennsylvania
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.
- Capital City
Harrisburg
- Currency
United States Dollar ($, USD)
- Population size
1,30,00,000
Facts & Stats
- Capital City
Harrisburg
- Currency
United States Dollar ($, USD)
- Population size
1,30,00,000
- VAT - standard rate
6% (Plus additional local taxes (minimum 8%))
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.
Grow your team in Pennsylvania with Remote
If you want to hire in Pennsylvania, you’ll need to own a legal entity there — or partner with a global employment solutions provider, like Remote.
We can employ top talent in Pennsylvania on your behalf and manage complex HR tasks such as onboarding, payroll, benefits, and taxes. You can also manage and pay your contractors in Pennsylvania through Remote.
Risks of misclassification
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.
Employing in Pennsylvania
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.
Hours of work in Pennsylvania
Work and overtime laws in Pennsylvania are overseen by the state’s Department of Labour.
What is considered full-time employment in Pennsylvania?
Full-time employment is considered to be between 30 and 40 hours per week.
Do pay employees get overtime in Pennsylvania?
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 considered executive or managerial
Work in a certified or licensed profession, such as law, accounting, architecture, or engineering
In Pennsylvania, the pay threshold for exemption is currently $684 per week, which is the federal minimum.
Note that the federal pay threshold for exemption is currently being reviewed in the US.
Minimum wage in Pennsylvania
The minimum state wage for private sector employees is currently $11 per hour, although rates are higher in certain areas, such as Philadelphia.
Onboarding timeline in Pennsylvania
We can help you get your new employee started in Pennsylvania fast, with a minimum onboarding time (MOT) of just 2 working days. Note that the 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.
Payroll cycle in Pennsylvania
Under state law, employers are entitled to designate the pay day.
For Remote customers, employee payments are made twice per month in equal instalments, 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.
Effortless HR in Pennsylvania: Take the Tour
Competitive benefits package in Pennsylvania
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:
Pension or 401(K)
Medical Insurance
Vision Insurance
Health Saving Plan (HSA)
Long term disability insurance (LTD)
Dental Insurance
Life Insurance
Flexible Spending Account (FSA)
Are employers required to provide health insurance in Pennsylvania?
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.
Are employers required to offer 401k in Pennsylvania?
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.
Taxes in Pennsylvania
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, depending on their area of residence.
Employer taxes
Employment Tax | |
|---|---|
6% | Federal unemployment insurance tax (FUTA) (charged on the first $7,000 an employee earns per year) |
1.42% to 10.37% | State unemployment insurance tax (SUTA) |
6.2% | FICA (Social security) |
1.45% | FICA (Medicare) |
Employee taxes
Payroll Tax | |
|---|---|
10% to 37% | Federal income tax |
3.07% | State income tax |
6.2% | FICA (Social security) |
1.45% | FICA (Medicare) |
Types of leave
Holiday | In Pennsylvania, there is no state or federal law that requires employers to provide paid or unpaid holiday leave to their employees. However, many employers offer 10 days of paid leave after the first year of employment. |
Sick leave | 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 |
Parental and maternity leave | Under the FMLA, employees are entitled to up to 12 weeks of unpaid maternity or paternity leave. Some organisations opt to pay a reduced pay during this period. |
Bereavement leave | Employers are not legally required to provide bereavement leave to their employees, although most organisations offer unpaid leave. |
Jury duty | 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 penalise or terminate an employee on jury duty. Some employers provide paid leave. |
Military 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. |
Employment termination
Termination process
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.
Notice period
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.
Severance pay
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 holiday time, unless stipulated in the employment agreement.
Probation periods
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.