PENNSYLVANIA INCOME TAX (SIT)

Pennsylvania law requires the withholding of Pennsylvania personal income tax from compensation of resident employees for services performed either within or outside Pennsylvania and from wages of nonresident employees for services performed within Pennsylvania.

PA-100 Enterprise Registration Form

PA-100 Enterprise Registration ON-LINE

A new employer must file a "PA-100 Enterprise Registration Form" for employer withholding of Pennsylvania Personal Income Tax and employer Unemployment Compensation Tax.

An employer should use the Federal Identification Number (FEIN) to report all Pennsylvania withholding until a number is assigned. New employers who have not yet received a FEIN will be assigned a temporary (TE) Pennsylvania number until the Federal Number is obtained, at which time the PA Department of Revenue must be notified.

FORM PA-501

Each employer registered with the PA Department of Revenue will receive a coupon book containing deposit statements and quarterly reconciliation documents. A substitute FORM PA-501R can be used to make a deposit if you have not received a coupon book and a payment is due.

PAYMENT REQUIREMENTS

MONTHLY

For withholding of a $300 or more, but less than $1000. in a quarter, the employer must remit monthly by the 15th of the following month

QUARTERLY

If withholding is less than $300 per quarter, remit quarterly by the last day of the month following the end of the calendar quarter.

SEMI-MONTHLY

If withholding is $1000 or more per quarter, remit the tax within three banking days after the close of each semi-monthly period. The semi-monthly periods end on the 15th and the last day of the month.

PA/W3 RECONCILIATION

Every employer must file a "Quarterly Reconciliation of Income Tax Withheld". The PA/W3 Reconciliation is due on the last day of April, July, October and January.

FORM W-2

An employer must complete two copies of the Wage and Tax Statement (FORM W-2) for each employee to satisfy Pennsylvania tax requirements. One copy must be furnished to the employee and one copy submitted to the PA Department of Revenue by January 31 of the following year, along with FORM REV-1667 W-2 Transmittal.

RECORDS

An employer must keep a clear and accurate ledger of amounts withheld and show that they are the State's property. Employers must keep all pertinent records available for inspection. Records may be stored on Microfilm, Microfiche, or other form. IF YOU NEED ASSISTANCE CALL: (717) 783-8839.

PENNSYLVANIA UNEMPLOYMENT INSURANCE

REGISTRATION

Registration is combined with the registration for State Income Tax. No additional form is required. You will be assigned a separate identification number, different from your State withholding number.

CONTRIBUTION RATE

Along with your Unemployment Identification Number you will be assigned an experience rate. This rate is used to determine your unemployment insurance tax payments. Your contribution rate may change annually. The rate is determined by the size of your payroll, the number of employees, the amount of unemployment benefits charged against your account, and the amount of reserves in the State Unemployment Trust Fund, along with your S.I.C. classification.

EMPLOYEE CONTRIBUTIONS

All employers are required to withhold employee contributions at the time wages are paid. Employee contributions are withheld at the rate of .02% of all wages.

FORM UC-2/2A/2B