Skip to agency navigation
Skip to main content

Official Website

of the Commonwealth of Pennsylvania

    The .gov means it's official.

    Local, state, and federal government websites often end in .gov. Commonwealth of Pennsylvania government websites and email systems use "pennsylvania.gov" or "pa.gov" at the end of the address. Before sharing sensitive or personal information, make sure you're on an official state website. 
    Tax Types and Information

    Employer Withholding

    Pennsylvania law requires employers to withhold Pennsylvania personal income tax from employees’ compensation in two common cases:

    • When resident employees perform services within or outside Pennsylvania; and
    • When nonresident employees perform services within Pennsylvania.
    File a Business Tax Return
    Make a Business Tax Payment

    Overview

    An employer is any individual, partnership, association, corporation, government body or other entity that employs one or more persons, which is required under the Internal Revenue Code to withhold federal income tax from wages paid to an employee.

    Entities are required to withhold PA personal income tax at a flat rate of 3.07 percent of compensation from resident and nonresident employees earning income in Pennsylvania.

    Employers currently withhold and remit employees’ taxes on wage and salary income according to the following schedule:

    • Quarterly – If total withholding is under $300 per quarter, the taxes are due the last day of April, July, October and January.
    • Monthly – If total withholding is $300 to $999 per quarter, the taxes are due the 15th day of the following month.
    • Semi-Monthly - If total withholding is $1,000 to $4,999.99 per quarter, the taxes are due within three banking days of the close of the semi-monthly period.
    • Semi-Weekly – If total withholding is $5,000 or greater per quarter ($20,000 per year), the taxes are due on the Wednesday following the pay dates for employers whose paydays fall on a Wednesday, Thursday or Friday; and on the Friday following the pay dates for employers whose paydays fall on Saturday, Sunday, Monday or Tuesday.

    Entities required to deduct and withhold tax must file a Quarterly Withholding Return (W-3). Employers are also required to file reconciliation returns for each quarter and wage and tax statements (W-2s) for all employees and W-2 transmittals.

    A due date reminder card (REV-1716) is available on the department’s website. myPATH filers may request an email reminder be sent to them five business days before each tax due date at mypath.pa.gov.

    The Internal Revenue Service (IRS) issues FEINs. You may obtain a FEIN by applying for a Federal Employer Identification Number online at irs.gov.

    An entity required to withhold PA personal income tax must first obtain a FEIN from the IRS, then register with the Department of Revenue.

    Entities are required to register, file, and pay all withholding taxes under separate account IDs.

    • W-2 wage employees should be reported and filed under an Employer Withholding account.
    • 1099-MISC/NEC withholding should be reported and filed under an Other Income Withholding account.
    • 1099-R Income/Withholding should be reported and filed under a Retirement Withholding account.

    Businesses may register for withholding accounts by completing the Pennsylvania Online Business Tax Registration at mypath.pa.gov.

    Returns are to be filed whether or not taxable transactions occur in a period. File returns and remit payments using one of the following options:

    • myPATH
    • Telefile provides a fast and secure way to file tax returns and remit payments by calling, toll-free, 1-800-748-8299.

    You will be required to enter any two of the following identifiers: 8-digit Account ID Number, FEIN or SSN, and the period ending date for the period you wish to file.

    Paper returns are accepted for the PA W-2, 1099-MISC, 1099-NEC, and 1099-R income statements and form REV-1667 Annual Withholding Reconciliation Statement. Employers filing 10 or more income statements must file electronically through myPATH. Employers filing less than 10 income statements can remit electronically through myPATH or mail the records to the department.

    Acceptable paper income statements

    • 8 ½ x 5 ½ inches
    • 8 ½ x 2 ¾ inches
    • 8 ½ x 2 ½ inches
    • 7 ½ x 2 6 inches
    • 6 ½ x 2 ½ inches
    • 4 ¼ x 5 ½ inches
    • 3 ¾ x 5 ¼ inches
    • 3 ¾ x 5 inches

    Unacceptable paper Income statements forms:

    • All carbon copy - (Onion Skins/federal copy D)
    • Income Statements that are not sized correctly (see above)
    • Income Statements with field labels (e.g. Employee SSN, FEIN, 15, 16, etc.)
    • Income Statements where data is printed on labels or data is unreadable
    • Income Statement with a dark background
    • Blank Income statements
    • Grand – Total pages
    • Columnar Listings

    Paper returns are not accepted for the Quarterly Withholding Return (W-3). The use of other tax forms could result in non-filer notifications and/or the misapplication of the tax payment.

    Pennsylvania has reciprocal tax agreements with Indiana, Maryland, Ohio, New Jersey, Virginia, and West Virginia. Unless your employee is a resident of one of these states, you should withhold Pennsylvania personal income tax. If you agree not to withhold Pennsylvania tax because your employee is a resident of a reciprocal state, you must withhold that state’s tax. For more information on Pennsylvania’s reciprocal agreement, see the REV-415 Employer Withholding Information Guide.