As your business hires employees, you will have new requirements to consider. Read on to see common requirements for employers in Pennsylvania.
For a more comprehensive guide, check out the Pennsylvania Department of Labor & Industry’s Employer Information & Services. It’s a great resource for information on compliance, construction code services, developing a skilled workforce, financial incentives, IT policies, labor management services, and more.
Also, as part of hiring your workers, you are required to fill out a portion of the Pennsylvania Enterprise Registration Form (PA-100).
Out-of-State Employers
Working remotely and hiring remotely is now the new normal for many professionals. Staying compliant when hiring those remote employees can be difficult, so knowing the rules for expanding your team is crucial. The below information is what is required for out-of-state employers when hiring a remote employee in Pennsylvania:
State Employer Withholding and Unemployment Compensation
Employers are required to obtain accounts for employer withholding and unemployment compensation. To register for employer withholding and unemployment compensation, complete the PA-100 application.
You can do so electronically by following the steps below:
- Go to the PA Online Business Entity Registration (PA-100)
- Click Enter at the bottom of the screen.
- Register for a username and password and login.
- Click, “Create Application.”
- Complete the sections as required. In section 3, make sure to select the options for Employer Withholding and Unemployment Compensation.
Worker’s Compensation
If you have third-party worker’s compensation coverage, include the information in the PA-100 application as you are filling it out for employer withholding and unemployment compensation. If you do not have third-party worker’s compensation coverage you can also select this option in section 3 of the application.
New Hire Reporting Requirement
All employers should report new hires to the PA Department of Labor and Industry. To report new hires, visit the PA Career Link’s New Hire Reporting Program to create an account. Click on “Register with PA CareerLink” to begin uploading your new hires. You can also report up to three employees per web session without creating an account.
Local Withholding
Employers should also withhold and remit the local earned income tax and local services tax on behalf of their employees working in PA. These taxes are administered by third-party agencies determined by the county in which the employee works and lives. If the employee works and lives in two different counties, you would withhold at the higher earned income tax rate. The local services tax is always determined by where the employee works. To determine with whom you must register and the rates of withholding, visit the Municipal Statistics Contact Search.
