2017 Payroll Quick Guide

Pennsylvania Unemployment taxable wage base increases to $9,750.
The unemployment contribution rate for employees is 0.07% on all wages.

Federal Unemployment taxable wage base remains at $7,000.
The employer rate is 0.60%.

Pennsylvania Minimum Wages: $7.25; Food Services $2.83; Tip Credit $4.42

Federal Minimum Wages: $7.25; Food Services $2.13; Tip Credit $5.12

Social Security taxable wage base is $127,200
Employer & employee tax rate is 6.2%.

Medicare taxable wage base - No Limit
Employer and employee tax rate is 1.45%.

Pennsylvania Withholding - flat 3.07% rate

Pennsylvania Local Earned Income Tax - Every employer must withhold local earned income tax for their employees.
  • Every employee should complete a Certificate of Residency Form. (Click here for form)
  • Every employer MUST DEDUCT the GREATER of the employee's resident tax OR the tax where the employee is employed.
  • The employee's Form W-2 must show the numeric code where the payment was remitted.