Your State’s Unemployment Tax Laws: Pennsylvania

We at Unemployment Solutions for You proudly offer our unemployment claims management services across the United States. We are a leader in our industry not only because we offer an outstanding product, but also because we have a deep knowledge-base in the many differing unemployment laws across the 50 states. Part of our mission is to also educate you about how these laws may differ from state to state because they can affect you directly. So, join us on our continuing series, in which we explore the differences in unemployment eligibility, tax rate ranges, base periods, and much more in each state. This month, in Your State’s Unemployment Tax Laws, we’ll be looking at Pennsylvania, the Keystone State. The first step you should take as a new Pennsylvania business is to register with the Pennsylvania Department of Labor & Industry within 30 days of an employee performing services for which s/he would earn a wage. By establishing an unemployment insurance (UI) tax account with the state, either online or by paper, you will be on your way to lawfully complying with UI tax law. Unlike many other states, Pennsylvania does not have a minimum wage amount that must be paid before an employer becomes liable for UI taxes. By simply having an employee, your business will need to begin the UI tax process. When you are a new business and have begun to pay wages, there is a basic “new employer” contribution rate that you will be held to for your first two or three years. For non-construction employers, the basic contribution rate is 3.5% and 9.7% for construction...