Wage statement requirements
Pennsylvania regulations require a statement with every wage payment listing recorded work hours, rates paid, gross earnings, allowances claimed as part of minimum pay rate if any, deductions, and net wages.
Pennsylvania pay-statement rules and document checks (2026)
This 2026 Pennsylvania reference is for people assembling an accurate earnings statement or reviewing a pay record. Begin with the jurisdiction-specific rules and the source-backed subjects below; the presence of a downloadable paystub template does not itself determine an employer’s legal duties. The reviewed Pennsylvania material addresses wage statement requirements, state income tax, unemployment compensation.
- Official-source references
- State and federal context
- Practical document checks
Overview
First, determine which rules apply
Pennsylvania’s pay-statement rule is direct: every covered employer must furnish each affected worker a statement with every payment of wages listing recorded work hours, rates paid, gross earnings, applicable minimum-wage allowances, deductions, and net wages.
The tax side is more layered. Pennsylvania state Personal Income Tax withholding is generally 3.07%, but employers with Pennsylvania worksites may also need to withhold local Earned Income Tax and Local Services Tax. The applicable local EIT depends on the employee’s residence and worksite, and employers use Political Subdivision Codes to direct the tax to the correct jurisdiction.
Philadelphia adds another distinct layer. Philadelphia residents and nonresidents working in the city can be subject to the City Wage Tax, with rates that changed effective July 1, 2026.
Key findings from the official source material
State income tax
Pennsylvania employers generally withhold state Personal Income Tax at a flat rate of 3.07% from compensation subject to withholding.
Unemployment compensation
In the 2026 reference year, newly liable non-construction employers use a total contribution rate of 3.8220%, while newly liable construction employers use 10.5924%. Employee UC withholding remains 0.07% of gross earnings.
Workers’ compensation
Pennsylvania generally requires workers’ compensation coverage when an employer has at least one employee who is covered by the Workers’ Compensation Act.
Trusted sources
Primary sources for Pennsylvania
Consult these agency and research references when checking the rules for Pennsylvania. The publication date and availability of each link should be rechecked before relying on its contents.
Document checklist
What to check before using an earnings statement
Use the Pennsylvania requirements as a document-review list. Identify the governing employer or worker category, and distinguish mandatory fields from good recordkeeping practices.
When a statement is required
Furnish a earnings statement with every payment of wages to each covered employee.
Information to include
List recorded work hours, rates paid, gross earnings, allowances claimed as part of the minimum pay rate if any, deductions, and net wages.
State and local withholding
Withhold Pennsylvania Personal Income Tax at the current state rate when required, then determine whether local Earned Income Tax and Local Services Tax apply based on the employee’s residence and worksite.
Related business obligations
Consult unemployment-compensation contributions and employee UC withholding, workers’ compensation coverage, local PSD-code requirements, and Philadelphia Wage Tax when relevant.
After payday
Delivery, access, and records after payday
Statement delivery
Pennsylvania’s regulation focuses on furnishing the required statement with every payment of wages. Employers should use a delivery method that gives the employee the required pay-period information in a usable form.
Retention and access
Pennsylvania employers covered by the minimum-wage regulations are required to retain true, accurate, and legible employee supporting wage records for a three-year period from the date of the last entry. The records include rate of pays, hours, earnings, deductions, and other information needed to support payroll compliance.
Tax withholding
2026 withholding and related calculations
Pennsylvania employers generally withhold state Personal Income Tax at 3.07% from taxable compensation. Employers with Pennsylvania worksites must also determine the relevant local Earned Income Tax and Local Services Tax using the employee’s residence, worksite, PSD codes, and current local rates.
Pennsylvania state withholding
Pennsylvania requires employers to withhold state Personal Income Tax at a flat 3.07% from compensation subject to withholding.
Local EIT and LST
Employers with worksites in Pennsylvania generally must withhold and remit local Earned Income Tax and Local Services Tax. Refer to the official address search and PSD-code resources to identify the correct local rates and tax collector.
Document-generation boundary: Where a source discusses remitting taxes or employer contributions, PayStubCheck presents that information as context only. Preparing a document does not complete a remittance, file a return, or establish that a calculated figure is correct for a particular worker.
State vs. local rules
Local rules and coverage exceptions
Pennsylvania’s local earned-income-tax system makes worksite and residence data operational payroll inputs rather than background details. Employers should collect the employee’s residency information, identify the worksite PSD code, and use current local rates rather than assuming the state PIT calculation completes the withholding setup.
Step-by-step process
A practical document review sequence
1Confirm residence and worksite.
Collect the employee’s home address and Pennsylvania worksite so the correct PSD codes, EIT rate, LST treatment, and Philadelphia rules can be evaluated.
2Enter employer and employee details.
Add the employer, pay period, employee information, hours, rates, withholding setup, deductions, and applicable local tax details.
3Review Pennsylvania pay documentation calculations.
Consult gross earnings, federal withholding, 3.07% Pennsylvania PIT withholding, applicable EIT/LST, employee UC withholding, deductions, and take-home pay.
4Generate the records.
Create the earnings document and generate employee and bookkeeping records that reflect the pay-period calculations and deductions.
5Keep supporting records.
Retain the supporting wage records required by Pennsylvania and preserve the location and residency information used to support local withholding decisions.
A simpler way
Using PayStubCheck responsibly
Use the Pennsylvania references above to check the kind of earnings document you are preparing, verify the dates and figures, and decide whether the document must contain specific information. PayStubCheck offers standalone document preparation; it does not run payroll, retain authoritative employer payroll ledgers, give individualized legal advice, or file tax returns on the user’s behalf.
United States document note: Where state-specific withholding or local requirements matter, compare your entries with the appropriate official source before relying on a generated statement.
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Review every figure on a watermarked preview before any download.
- Official-source guidance
Each jurisdiction page lists the agency references it draws on.
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No subscription or long-term contract.
References
Official publications and research links
- 01View state withholding guidance (opens in a new tab)pa.gov
- 02View 2026 UC highlights (opens in a new tab)pa.gov
- 03View coverage requirements (opens in a new tab)pa.gov
- 04Pennsylvania wage-statement regulation (opens in a new tab)pacodeandbulletin.gov
- 05Pennsylvania local income-tax employer instructions (opens in a new tab)dced.pa.gov
- 06Supporting official source (opens in a new tab)pacodeandbulletin.gov
- 07PSD codes and local EIT (opens in a new tab)dced.pa.gov
- 08Higher-of-two EIT rule (opens in a new tab)dced.pa.gov
- 09Philadelphia Wage Tax (opens in a new tab)phila.gov
Questions
Questions about Pennsylvania earnings records
Does Pennsylvania require a wage statement with every paycheck?
Pennsylvania regulations require covered employers to furnish each affected worker a statement with every payment of wages.
What information should the Pennsylvania wage statement show?
The statement lists recorded work hours, rates paid, gross earnings, any allowances claimed as part of minimum pay rate, deductions, and net wages.
How long should Pennsylvania payroll records be kept?
Covered employers are required to preserve required supporting wage records for a three-year period from the date of the last entry.
What is Pennsylvania’s state income-tax withholding rate?
Pennsylvania employers generally withhold state Personal Income Tax at 3.07% from compensation subject to withholding.
Do Pennsylvania employers also withhold local taxes?
Often, yes. Employers with Pennsylvania worksites generally must determine local Earned Income Tax and Local Services Tax using the employee’s residence and worksite. The applicable EIT rate can depend on the higher of the resident rate or work-location nonresident rate.
Does Philadelphia have a separate wage tax?
Yes. Effective July 1, 2026, the Philadelphia Wage Tax rate is 3.735% for residents and 3.425% for nonresidents subject to the tax. Employers should refer to the City’s current Wage Tax instructions for Philadelphia-covered employees.
Keep your records in check
Prepare a Pennsylvania earnings record with a live preview.
Enter verified details, review the watermarked preview, and keep your supporting records with the finished document.