Overview

Capital
Harrisburg
Currency
United States Dollar (USD)
Date Format
mm/dd/yyyy

Taxes

Employer

Employer Payroll Tax

6.20%
FICA Social Security (Federal)
1.45%
FICA Medicare (Federal)  
6%
FUTA (Federal Unemployment Tax Act) 
1.29% – 9.33%
SUTA (State Unemployment Tax Act)
3.69%
SUTA New Employer Tax
18.63%-26.67% Total Employment Cost
Employee

Employee Payroll Taxes

6.2%
FICA Social Security (Federal)
1.45%
FICA Medicare (Federal)  
6%
FUTA (Federal Unemployment Tax Act) 
13.65%

Employee Income Tax

3.07%
Flat Tax Rate

Minimum Wage

General

Minimum wage is $7.25 per hour.

Payroll

Payroll Cycle

Employees should be paid at the time specified in contract, the standard period within the trade, or every 15 days.

Working Hours

General

Regular working hours are 8 hours per day and 40 hours per week.

Overtime

Overtime is work exceeding the weekly 40 hours. Compensation for overtime should 100%-150% the employer’s standard rate of pay. Some employees may be exempt from receiving overtime.

Leave

Paid Time Off

Pennsylvania labor law does not require an employer to grant paid vacation.

Public Holidays

There are 11 official holidays.

Sick Days

Pennsylvania labor law does not require an employer to grant paid sick leave. 

Maternity Leave

The Family Medical Leave Act (FMLA) provides certain employees with up to 12 weeks of unpaid, job-protected leave per year or certain family and medical reasons (maternity leave, serious illnesses or if the employee needs to care for a spouse or child). Employers are required to maintain the employees’ health benefits during their leave and keep their job open.  

Employees are eligible for leave if they have worked for their employer at least 12 months, at least 1,250 hours over the past 12 months, and work at a location where the company employs 50 or more employees within 75 miles. Whether an employee has worked the minimum 1,250 hours of service is determined according to the Fair Labor Standards Act principles for determining compensable hours or work.

Paternity Leave

Can fall under the Family Leave Act if they are covered under an eligible employer. 

Parental Leave

Can fall under the Family Leave Act.

Termination

Termination Process

Pennsylvaniais an At-Will State, meaning termination procedures are only required ifit is statedin the employee’s collective bargaining agreement. It does however does follow the federal Worker Adjustment and Retraining Notification Act.

Notice Period

Notice period is not required. 

Severance Pay

Pennsylvania labor law does not require an employer to grant severance payment.

Probation Period

Pennsylvania is an “at-will” state and a probationary period is not required.

VAT

General

The state sales tax is 6%. with exceptions n Allegheny at 7%, and Philadelphia at 8%.

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