Subject file PA

Payroll and Tax

Pennsylvania has the most complicated local payroll tax system in the country, Philadelphia sits outside it with a wage tax of its own, and greater Philadelphia spills into New Jersey and Delaware. If you have one employee who lives in a different township than your office, you already have a local tax question. If one lives across a bridge, you have a state one. This hub covers Act 32 and PSD codes, the higher-of rule, the Local Services Tax, the Philadelphia Wage Tax, and what changes when someone on your payroll lives or works in another state. Rates change on January 1 and July 1, so every piece carries a current-as-of date and gets refreshed on that schedule.