Employer of Record for Pennsylvania

In Pennsylvania, workers’ rights are protected by numerous employment and labor 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.

Do I need an EIN or Payroll Tax Number to Employ in Pennsylvania

Yes, if you plan to hire employees in Pennsylvania, you’ll need an Employer Identification Number (EIN) from the IRS. This number is required to report federal employment taxes and fulfil other federal requirements. Additionally, employers in Pennsylvania must register with the Pennsylvania Department of Revenue and the Department of Labor and Industry to obtain a payroll tax number. This state tax number is used for reporting and remitting state unemployment insurance (UI) tax and state withholding taxes.

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Working Hours in Pennsylvania

In Pennsylvania, standard working hours are typically 40 hours per week for full-time employment, though there is flexibility based on employer policies. The state mandates overtime pay for hours worked over 40 per week at a rate of 1.5 times the regular pay rate. However, there are no legal limits on daily working hours unless specific safety regulations apply. Federal regulations restrict the employment of minors, including limits on the number of hours they can work and prohibitions on hazardous work.

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What is considered full-time employment in Pennsylvania?

While Pennsylvania does not have a legal definition of full-time employment, the threshold commonly recognized by employers is 35–40 hours per week. This aligns with federal guidelines, but specific criteria may vary depending on the employer and the benefits tied to full-time status.

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Probation Period in Pennsylvania

Pennsylvania employment law does not mandate a probation period for new hires. Probationary periods are typically determined by the employer and used as an evaluation phase, but they are not legally required or regulated by the state.

Minimum wage in Pennsylvania

The current minimum wage in Pennsylvania is $7.25 per hour, in line with the federal minimum wage. 

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Pennsylvania Anti-Discrimination Laws

Pennsylvania’s anti-discrimination laws prohibit discrimination based on race, color, religion, national origin, sex, disability, age (40 and older), and genetic information. State laws also protect against discrimination based on marital status, pregnancy, and, in some localities, sexual orientation and gender identity. These laws apply to hiring, firing, promotions, and other employment practices. Complaints can be filed with the Pennsylvania Human Relations Commission (PHRC) or the federal Equal Employment Opportunity Commission (EEOC).

In general, employees are paid semi-monthly and monthly. Should the payment date be semi-monthly, the employer must make the salary payment within 10 days of the end date of the pay period.

Employment taxes and statutory fees affect both your payroll and your employees’ paychecks in Pennsylvania. Understanding the tax obligations for both employers and employees is crucial when operating in Pennsylvania's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Pennsylvania. Note that employees may be liable for additional local taxes in certain cities and jurisdictions.

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Employer Tax Contributions Pennsylvania

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Employee Payroll Tax Contributions

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Tax Due Dates in Pennsylvania

In Pennsylvania, the deadline for filing individual state income tax returns aligns with the federal deadline, typically on April 15. If April 15 falls on a weekend or federal holiday, the deadline is extended to the next business day.

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Pension in Pennsylvania

Not mandatory for private sector employers. 

Employers must navigate both federal laws and specific state regulations when offering benefits.

It should be noted that in the US, typical benefits such as vacation time, maternity leave, health insurance, etc. aren't legally required. However, it’s standard practice to offer them. As part of our global employment services, Playroll can create a globally compliant and competitive compensation package that can help you attract and retain top talent in the US.

Employee Benefits For Pennsylvania

Competitive benefits are essential for attracting and retaining top talent in Pennsylvania. Offering the right package helps employees feel valued and motivated. Our benefits experts understand the local labor market's trends, requirements, and expectations, ensuring your employees feel valued and supported. Common benefits in our Pennsylvania packages include:

• Pension or 401(K)
• Vision Insurance
• Life Insurance
• Medical Insurance
• Dental Insurance
• Health Savings Plan (HSA)
• Flexible Spending Account (FSA)

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Are employers required to provide health insurance in Pennsylvania?

Under the Affordable Care Act (ACA), employers with 50 or more full-time equivalent employees must provide health insurance to their full-time employees or face potential penalties. Employers with fewer than 50 full-time equivalent employees are not obligated to offer health insurance but may choose to do so to attract and retain talent.

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Do part-time employees get benefits in Pennsylvania?

No law mandates that employers provide benefits to part-time employees. Offering benefits such as health insurance, paid time off, or retirement plans to part-time staff is at the employer’s discretion. However, if benefits are offered, employers must adhere to the terms of their established policies or employment contracts.

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Are employers required to offer 401k in Pennsylvania?

There is no federal or state law requiring employers to offer 401(k) or other retirement plans. The choice to provide such benefits is voluntary and often based on an employer’s desire to remain competitive in the job market. If a retirement plan is offered, employers must comply with the Employee Retirement Income Security Act (ERISA) and other regulations to ensure proper management and fiduciary responsibility.

Employers not bound by specific mandates can still benefit from offering comprehensive packages to attract and retain skilled talent.

Is vacation leave mandatory in Pennsylvania?

Vacation leave is not mandatory in Pennsylvania, but if an employer provides it, they must adhere to their policy or employment agreement. Payment for unused vacation upon termination is only required if specified in the employer’s policy.

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Mandatory Leave Policies in Pennsylvania

Below are the mandatory leave entitlements for full-time employees in Pennsylvania.

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Paid Time Off in Pennsylvania

PTO is not mandated by state law, so employers are not required to provide paid or unpaid vacation or personal days. If offered, PTO must follow the employer's policy or contract terms.

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Maternity Leave In Pennsylvania

In Pennsylvania, there is no state-mandated maternity leave. Employees rely on the federal Family and Medical Leave Act (FMLA), which provides unpaid, job-protected leave for eligible employees to care for a newborn, adopted child, or newly placed foster child. If FMLA doesn’t apply, any maternity leave would depend on the employer’s policies. Some companies may offer paid maternity leave voluntarily as a benefit.

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Paternity Leave In Pennsylvania

In Pennsylvania, there is no state-mandated paternity leave. Eligible employees may qualify for unpaid, job-protected leave under the federal Family and Medical Leave Act (FMLA) to care for a newborn, adopted child, or newly placed foster child. If FMLA doesn’t apply, any paternity leave would depend on the employer’s specific policies, as Pennsylvania law does not provide additional leave requirements for paternity.

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Sick Leave In Pennsylvania

State law does not require paid sick leave, but FMLA  may be utilised for job-protected unpaid leave in instances such as a serious health condition or to care for an immediate family member with a serious health condition. Certain cities, like Philadelphia and Pittsburgh, require paid sick leave for some employers.

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Military Leave in Pennsylvania

Federal law (USERRA) provides unpaid leave and job protection for employees in the armed forces, including the National Guard and Reserves, ensuring reemployment rights upon return from service.

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Jury Duty in Pennsylvania

Employers must provide unpaid leave for jury duty and cannot penalize employees for serving. While pay is not required, employers must not retaliate for jury service.

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Bereavement Leave

No legal requirement for employers to provide leave; policies depend on the employer.

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Voting Leave

No specific legal requirement for time off to vote, though employers are encouraged to allow time if work schedules conflict with polling hours.

When it comes to terminating employment in Pennsylvania, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process in Pennsylvania

Pennsylvania operates under the "at-will" employment doctrine, meaning employers can terminate employees for any reason, at any time, without prior notice, as long as the reason is not illegal. Conversely, employees can also resign without reason or notice. 

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Notice Period in Pennsylvania

There is no legal requirement for employers to provide a notice period before terminating an employee. However, under the federal Worker Adjustment and Retraining Notification (WARN) Act, employers with 100 or more employees must provide 60 days' notice before a mass layoff or plant closure affecting 50 or more employees.

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Severance in Pennsylvania

Pennsylvania law does not require employers to provide severance pay upon termination. Severance agreements are typically governed by the terms of the employment contract or company policy.