Payroll and Benefits Guide - United States - Pennsylvania

United States - Pennsylvania
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Currency

United States Dollar (USD)
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Capital

Harrisburg
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Employer Taxes

13.49% – 27.84%
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Date Format

mm/dd/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

The state bird of Pennsylvania is the ruffed grouse, and the state flower is the mountain laurel.

Hershey, Pennsylvania, is known as the “Chocolate Capital of the United States” and is home to the Hershey Company, famous for its chocolate products.

Pennsylvania has a rich history in steel production and was once a leading producer of steel in the United States.

The state motto of Pennsylvania is “Virtue, Liberty, and Independence.”

Pennsylvania is home to the Liberty Bell, an iconic symbol of American independence, located in Philadelphia.

Pennsylvania is known as the “Keystone State” because of its central location among the original 13 colonies, resembling a keystone in an arch.

Contributions

Employee Payroll Tax

Contribution Type Rate
Unemployment 20.06%
FICA Social Security 6.20%
FICA Medicare 1.45%
Additional tax 0.90%

Employer Payroll Tax

Contribution Type Rate
Unemployment Insurance 1.42% – 10.37%
Unemployment- New Employer 3.82%
FICA Social Security 6.20%
FICA Medicare 1.45%
FUTA 0.60% -6.00%

Payroll

Payroll Cycle

Employees are paid semi-monthly and monthly.

13th Salary

There are no provisions in the law regarding 13th salaries.

Work Hours and Week

The workweek is a maximum of 40 hours per week or 8 hours per day.

Overtime

Pennsylvania adheres to the Fair Labour Standards Act (FLSA), and work in excess of 40 hours per week is considered overtime and paid at the rate of 150% of the regular pay. If employees are scheduled to work on weekends or rest days, no additional payment is required.

Leave

Paid Time Off

Pennsylvania does not have any state laws that govern paid leave. However, it is common for employers to decide whether to offer paid or unpaid vacation leave.

Public Holidays

There are 12 public holidays.

Sick Days

It is common for an employer to follow the Family and Medical Leave Act (FMLA) which provides certain employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons (maternity leave, serious illnesses, or if the employee needs to care for a spouse or child).

Maternity Leave

Maternity leave falls under the FMLA and Pregnancy Discrimination (Family and Medical Leave Act.)

Paternity Leave

Paternity leave falls under the FMLA .

Parental Leave

Parental leave falls under the FMLA.

Termination

Termination Process

Except in mass dismissals or as provided for in an employment contract or a collective bargaining agreement, U.S. law does not impose a formal notice period to terminate an individual employment relationship, and employment is stipulated as “at will.”

Notice Period

In Pennsylvania, most employees are employed at will, and either party can terminate the employment relationship without notice.

Severance Pay

Except as otherwise provided in an employment contract or collective bargaining agreement, employers are not required to make severance payments to terminated employees.

Probation Period

Probation Period

No legal provision governs a formal trial or probation period. However, it is common practice for employers to set a performance evaluation after an initially stated period of employment of 90 days.

VISA

VISA

Foreign nationals without permanent resident status or a work visa are not permitted to work in the United States.

VAT

Pennsylvania has a set sales tax rate of 6%, however, in some counties and cities, the sales tax may vary (i.e. Allegheny County is an additional 1% and purchases made in Philadelphia is an extra 2.00%).