Overview
Capital
Currency
United States Dollar (USD)Taxes
Employer
6.20% - Social Security Tax
1.45% - Medicare
Up To 3.3% - State Taxes
1.45% - Medicare
Up To 3.3% - State Taxes
Employee
Minimum Wage
General
Minimum wage is $7.25 per hour.
Non Mandatory
Expat Benefits
There are no official expat benefits. However different companies can offer special benefits for the expats working for them. Benefits differ from one company to another.
Paid Time Off
Vacation days
The state law does not require official vacation time to be given to the employees. It depends on the agreement with the employer.
Sick days
No official law requires the employer to give employees sick days. Depends on the prior agreement upon start of employment.
Public Holidays
There are 11 official holidays, however private employers are not required to provide either time off or overtime pay on these days.
VAT
General
The state sales tax is 6%. with exceptions n Allegheny at 7%, and Philadelphia at 8%.
Mandatory Benefits
Pension Fund
Employer:contributes of the total payroll per month for the employees pension funds. The contribution percentage is not specified.
Employee: contributes 6.25% of the total payroll per month for the pension funds.
Employee: contributes 6.25% of the total payroll per month for the pension funds.
Social Security
As of 2011, after the Tax Relief, Unemployment Insurance Re-authorization and Job Creation Act of 2010, the Social Security tax rate is 4.2 percent of an employee's wages.
Advance Notice
While there is no official period required, the general practice is is 2 weeks.
Severance Pay
Pennsylvania law does not either require or prohibit severance payments. It depends on the employer’s agreement with the employee.
Payroll
Additional Employee Withholding
Federal:
1. Medicare - 1.45%
2. Social Security - 6.2%
3. Unemployment Tax - 6.0% and maximum taxable earnings are $7,000
State:
1. Unemployment Insurance - 3.68%
1. Medicare - 1.45%
2. Social Security - 6.2%
3. Unemployment Tax - 6.0% and maximum taxable earnings are $7,000
State:
1. Unemployment Insurance - 3.68%
Federal:
1. Medicare - 1.45% (additional 0.9% contribution for employees earning less than $200,000)
2. Social Security - 6.2% with salary ceiling of $118,500
3. Unemployment Tax - 0%
State:
1. Unemployment Insurance - 0.7%
1. Medicare - 1.45% (additional 0.9% contribution for employees earning less than $200,000)
2. Social Security - 6.2% with salary ceiling of $118,500
3. Unemployment Tax - 0%
State:
1. Unemployment Insurance - 0.7%
Termination
Termination Process
Pennsylvania follows “employment at will” doctrine which means both the employee and employer are allowed to terminate the employment at any given time without a reason. Therefore at the time of termination, the employer must pay all the necessary wages up to the day of termination.
