Paycheck Calculator Pennsylvania - PA

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Pennsylvania - PA Paycheck Calculator: Hourly and Salary

Pennsylvania, a US state with a combo of natural beauty, a growing economy, and a vibrant culture. It is located in the Northeastern, Mid-Atlantic region of the United States, encompassing the Great Lakes and Appalachian.

The State is officially known as the Commonwealth of Pennsylvania and is the 5th-most populous, the 33rd-largest state by area and the 9th-most densely populated among the 50 states. Harrisburg is the capital of Pennsylvania, while Philadelphia is the largest city, and Delaware Valley is the largest metro of the state.

So if you're planning on moving to Pennsylvania to start a new life with a new job or business, then you must continue reading this article. Our travel and finance experts have joined hands to compile a fantastic guide than covers the following topics:

  • The thing you must know before moving to Pennsylvania
  • Pennsylvania Payroll Facts
  • How to Calculate Paycheck in Pennsylvania? – This section would benefit both employers and employees in the following ways:
    • Help job seekers to compare several job offers in terms of take-home pay and choose the best one.
    • Help entrepreneurs to compare different business opportunities in terms of employment cost.
    • Help employees of Pennsylvania to calculate their upcoming Paycheck amount for verifying and budgeting.
    • Help employers in Pennsylvania to calculate Paycheck amounts for multiple employees instantly using our Pennsylvania Paycheck Calculator.
  • Federal and Pennsylvania Payroll Laws to ensure your paycheck complies with the law.
  • Frequently Asked Questions

We hope these topics would help you in taking the best life-changing decision that you won't regret later. So let's get started!

Things You Must Know Before Moving To Pennsylvania

Moving from town to town or state to state isn't that simple. You have to search through all the good, bad, and the ugly about the new place, to ensure your decision won't backfire. Wherefore, here are some of the essential factors you must consider before relocation to Pennsylvania:

Cost of Living

Living in Pennsylvania won't add an extra burden on the budget, as the state's living cost is relatively lower than the rest of the states. The cost of living index in Pennsylvania is 92.5, while the national index is 100 points.

Housing is a significant factor in the cost of living difference, whereas other factors like grocery, health, transportation, utilities, and miscellaneous expenses are somewhat similar to other states.

Cost of Housing

Housing in Pennsylvania is ridiculously cheap, with the median home value of $173,700, which almost 2/3 of the national median home value of $231,200. Though home value depends on the location and city, still it better to buy a home in Pittsburgh, Philly, and throughout the state.

Apart from buying, you also have an option to rent a house at a reasonable cost. The median Home rent for a single bedroom is $830, and for a double bedroom is $1,027. However, the rental cost is relatively higher in Philadelphia and significantly less in Harrisburg and Lancaster.

Education

Pennsylvania secured the 8th position among 50 best states for education by USA Today. Furthermore, it also houses some of the best K–12 schools and colleges in the United States. Wherefore, Pennsylvania will not compromise with the better and bright future of your kids.

Pittsburgh and Philadelphia have some of the notable and prestigious schools and universities, including the University of Pennsylvania (Philadelphia), Carnegie Mellon University (Pittsburgh), University of Pittsburgh (Pittsburgh), and Mt. Lebanon School District (Pittsburgh) while Villanova University (Villanova), Lehigh University (Bethlehem) and Tredyffrin-Easttown School District (Wayne) are also among well-reputed educational institutes situated in the state other than Pittsburgh and Philadelphia.

Weather

The climate of Pennsylvania is mainly within the humid continental zone. However, it varies depending on region and elevation. The State experiences four seasons with the colder winters and cooler summers in most of its parts (including the Northern mountainous region), while Southeast and southwest areas experience warmer weather. Moreover, the state also has threats and risks of Natural disasters such as Floods, Fires, Winter storms, and Tornados.

Outdoor Activities

Apart from affordable housing, reliable education, and favorable climate, the Pennsylvania State also offers loads of outdoor opportunities, to make you holidays and vacations memorable and relaxing with your friends and family. You can plan your day to explore some of the Attractions & Activities like AACA Museum and The Amish Village, or History & Heritage like Gettysburg Battlefield Bus Tours, The National Civil War Museum, and Penn Wells Hotel & Lounge.

Moreover, if you are nature lover, then you would love visiting stunning Natural Outdoor Recreations like Bushkill Falls, Crystal Cave, Forest Ridge Cabins, The Nature Inn at Bald Eagle, and Penn's Cave & Wildlife Park. Besides, the state also houses opportunities for Shopping centers like 13th Moon Creations, Events & Festivals like Gettysburg Ghost Hunt, Resorts & Sports like Hidden Valley Resort, and Arts & Culture like Frank Lloyd Wright's Fallingwater.

Business and Job Opportunities

There are many ways you can earn a good living while living in Pennsylvania. The city is just south of New York, so If you are a "super-commuter," you can take a two-hour bus to Manhattan daily for an excellent job or business while living an affordable life (especially housing cost) in Pennsylvania.

Nevertheless, if you are looking for business and job opportunities in Pennsylvania than you suggested to settle in the city of Pittsburgh. The city houses a strong industry, bustling startup scene, and a reasonable cost of living, as compared to cities like Boston, New York.

With the unemployment rate in Pennsylvania of 4.8% and a minimum wage of $7.25/hour and a strong economy overall, there are a lot of great jobs and business opportunities in the rest of the state too.

The state is an industrial and agricultural powerhouse (especially in steel and mushroom production) and has the 6th largest GDP in America. Some of Pennsylvania's fastest-growing careers include occupational therapists, biomedical engineers, interpreters/translators, web developers, and occupational therapists. Moreover, OB/GYN, psychiatrists, orthodontists, and anesthesiologists are among the highest-paying positions.


Pros and Cons:

Like everyplace, Pennsylvania State has numerous great reasons for living there, but there are bad things too. This section is to highlight all the pros and cons of the state:

Pros:
  • Lower cost of living, compared to the close-proximity cities like New York
  • Cheaper Housing
  • Diverse Population
  • In close proximity with Major Metropolitans like New York City and Philadelphia
  • Fewer Taxes, including sales tax exemptions and lower-income tax
  • High Quality of life
  • Top-notch education
Cons:
  • Frigid winters with plenty of snowfall
  • Wildly varying weather
  • The high cost of property and income taxes
  • Poor quality roads

Pennsylvania Payroll Facts:

  • Employers to Pennsylvania withhold federal income tax from their employee's paycheck, at the rate ranging between 0% and 37%, distributed in seven tax brackets, dependent on filing status and income level.
  • Both employers and employees fund FICA taxes, which consist of 12.4% of Social Security tax and 2.9% of Medicare. Employers withhold half of both taxes from their employee's paychecks and pay the other half themselves. However, if the employee's annual wage exceeds $200,000, then Additional Medicare surtax of 0.9% is withheld only from the employee's paycheck.
  • Employers of Pennsylvania State also withhold State Income tax at a flat rate of 3.07%, regardless of income level and filing status. This rate is the lowest among eight states who levies tax at flat rates.
  • Two thousand four hundred ninety-two municipalities and school districts in the state levy local income tax. (Rates are mentioned ahead in the guide)
  • Pennsylvania Income Tax on Supplemental Wages and Bonuses is charged at a flat rate of 3.07%.
  • Employers of the state pay FUTA tax, which is charged at a rate of 6% of the first $7,000 taxable income of an employee.
  • Both employers and employees also pay State Unemployment Insurance (SUI) Tax, which is funded by the employer at the rate ranging between 1.2905% and 9.933% on the first $10,000 earned by each employee. However, new employers pay 3.689%, and construction employers pay 10.2238%. Moreover, Employees pay 0.06% of their gross wages as Unemployment Tax Contribution.
  • Employers who pay SUI tax in full and on time can claim a tax credit of up to 5.4% for FUTA tax.
  • The Minimum wage rate in Pennsylvania is the same as the Federal Minimum wage rate of $7.25 for all employees, unless or otherwise exempted. Moreover, the Cash Minimum Wage for Tipped employees is $2.83, with the maximum tip credit of $4.42.
  • Non-exempted employees in Pennsylvania are paid overtime at one and half of their regular hourly rate for every excess hour they work after 40 hours in a workweek.
  • Pennsylvania has a reciprocal agreement with Indiana, Maryland, New Jersey, Ohio, Virginia, and West Virginia, so residents of these reciprocal states working in Pennsylvania are not required to pay income taxes here.
  • The livable wage for a single adult in Pennsylvania is $11.53, while for a couple (one working) with three children is $28.46.
  • The average annual salary in Pennsylvania is $62,456, which is equal to the hourly rate of $30, whereas the national average salary is $66,034.
  • The median household income for Pennsylvania's residents is $59,445 (According to United States Census Bureau).

How to Calculate Paycheck in Pennsylvania?

As we are done with relocation to Pennsylvania and its payroll facts, now it's time to calculate paycheck. This paycheck calculation can help you compare different job offers, your take-home pay from your job in Pennsylvania, or your employment cost as an employer.


Step 1 - Calculating Gross Pay:

The very first step to calculating the paycheck amount is to determine Gross Pay. It is a wage that an employee earned in the last pay period.


Gross Pay is calculated differently for both hourly and salary-based employees, which is discussed in detail as follow:

Gross Pay for Hourly Employee

Hourly Employees are paid at a mutually agreed pay rate for each hour they work in a pay period. Usually, Pay periods for Hourly employees are Hourly, Daily, Weekly, and Bi-Weekly. However, the Federal, State, and Local Wage law requires the employers to set the pay rate equals to or more than the defined Minimum Wage Law for the non-exempted employees.

Hourly employees are also entitled to receive overtime, for each excess hour worked after regular hours in a workday or a workweek. Remember, like Minimum wage, the employers are also required to follow Overtime wage law provided by the federal, state, or local authorities.


Note: All the relevant laws are discussed in detail ahead.

To calculate gross wage for an hourly employee:

  1. Calculate total hours worked in a Pay Period using the data from Timesheet or Timecard.
  2. Multiply Total Hours worked with the Hourly Rate (Pay Rate).
  3. Add overtime hours (if any) worked by the employee.

Quick Tip: You can also use our Timecard with overtime Calculator to calculate Gross Wage for Hourly Employee instantly.

Gross Pay for Salaried Employee

Salaried Employees are paid at the flat amount rather than on an hourly basis. The amount is usually mutually agreed as an Annual Salary, which is then paid in Semi-monthly or Monthly Pay periods.

Salaried employees are mostly exempted from overtime law. However, their salaries must be according to Federal and State Minimum Wage law.

To calculate Gross Pay for Salaried Employees:

  • Divide the "employee's salary" by "number of pay periods." For example: If the employee's annual salary is $25000 and is paid on a semi-monthly pay period, then the employee's Gross Pay would be: $25000 / 24 = $1042.

Don't forget that Supplemental Wages like Bonuses, commissions, tips, paid leaves, fringe benefits, or other taxable wages earned by the employee must be added into the Gross wages.


Step 2 – Subtracting Pre-Tax Deductions (If Any):

Once you are done with Gross Wages, it's time to subtract any Pre-Tax deductions from the gross wage to get taxable wages as Pre-tax deductions are not taxable for federal payroll taxes.

Pre-tax deductions are offered to the employees as benefits like fringe benefits, HSA plans, etc., to reduce their taxable income, hence, increasing their take-home pay amount. Remember, not all benefits are exempted from taxes, so choose the pre-tax deductions wisely.

Some of the common pre-tax deductible benefits are:

  • FSA - Flexible Spending Accounts
  • HSA - Health Savings Accounts
  • Retirement savings accounts like a traditional 401(k)
  • Some of the Fringe Benefits
  • health insurance
  • accident insurance
  • dental and vision insurance
  • Commuter Benefits
  • Short-Term Disability

Note: Pre-Tax deduction rate, contribution limits, special tax withholding rules change from year to year, according to inflation and costs of living by the federal government. Therefore, you must keep yourself updated with all rates before making any deductions.

Many Taxpayers find it hard to itemize their deductions to calculate taxable wages, for which they go for standard deductions, that varies according to the filing status, as shown in the table below:

All Filers(Updated Dec 2019)
Filing Status Standard Deduction Amount
Single Filers $12,200
Married, Filing Jointly $24,400
Married, Filing Separately $12,200
Head of Household $18,350

Step 3 – Calculate and Subtract Federal Taxes:

Once you have determined the taxable wages, it's time to deduct Federal Income taxes for the Taxable wages.

IRS requires the employers to withhold federal income tax from the employee's paycheck, according to the details provided by the employee on Form W-4. The employee fills this form at the start of the job. The form includes all the necessary information, including income, number of allowances to claim, number of dependents, amount of additional taxes to deduct, and much more.

The employees are required to keep their Form W-4 up to date with all their current information, especially marriage, divorce, or child's birth.

The federal income tax is charged according to the tax brackets in which the taxpayer's income falls. The latest income tax brackets and rates are as follow:

Single Filers
Taxable Income Rate
$0 - $9,700 10%
$9,700 - $39,475 12%
$39,475 - $84,200 22%
$84,200 - $160,725 24%
$160,725 - $204,100 32%
$204,100 - $510,300 35%
$510,300+ 37%

Married, Filing Jointly
Taxable Income Rate
$0 - $19,400 10%
$19,400 - $78,950 12%
$78,950 - $168,400 22%
$168,400 - $321,450 24%
$321,450 - $408,200 32%
$408,200 - $612,350 35%
$612,350+ 37%

Married, Filing Separately
Taxable Income Rate
$0 - $9,700 10%
$9,700 - $39,475 12%
$39,475 - $84,200 22%
$84,200 - $160,725 24%
$160,725 - $204,100 32%
$204,100 - $306,175 35%
$306,175+ 37%

Head of Household
Taxable Income Rate
$0 - $13,850 10%
$13,850 - $52,850 12%
$52,850 - $84,200 22%
$84,200 - $160,700 24%
$160,700 - $204,100 32%
$204,100 - $510,300 35%
$510,300+ 37%

Step 4 – Deduct FICA Taxes:

Besides, Federal Income Tax, the IRS also requires the employer to withhold FICA tax (15.3%) for the employee's paycheck and also requires the employer to pay an equal amount for each employee.

Federal Insurance Contributions Act (FICA) Taxes comprises of two types of taxes which are as follow:


  1. Social Security:

A total of 12.4% of social security tax is charged from which 6.2% is withheld from the employee's gross, and the employer pays the matching 6.2%. However, Social Security is only charged on the maximum taxable earnings of $137,700 for 2020.


  1. Medicare:

A total of 2.9% of Medicare is charged, from which 1.45% is withheld from the employee's gross, and the employer pays the matching 1.45%. Unlike Social Security, there is no maximum table earning limit for this tax. However, an additional surtax of 0.9% is charged as Additional Medicare Surtax on the employees having income over the specified level along with filing status, which is as follow:

Income Over Filing Status
$250,000 Married Filing Jointly
$125,000 Married Filing Separately
$200,000 Single

Note: Employers are not required to pay an equal amount for Additional Medicare Surtax.

Step 5 – Payment of FUTA Taxes

IRS requires the employer to pay another tax, known as The Federal Unemployment Tax Act (FUTA) Tax. This tax is paid at the rate of 6% on the first $7000 earned by each employee in a year. However, the IRS doesn't require the employees to contribute to it.

The employers who pay State Unemployment Insurance (SUI) tax in full and on time are given relieving FUTA tax credit of up to 5.4%, which saves a whopping 90% from FUTA Tax.


Step 6 – Subtract Post-Tax Deductions (If any):

Post-tax deductions (after-tax deductions) is an amount the employer takes out from the employee's paycheck after taxes. Therefore, it does not affect taxable wages and the amount of tax payable.

Here are some of the types of post-tax deductions that employee may voluntarily choose:

  • Charitable contributions
  • Disability insurance
  • Garnishments
  • Specific Retirement Plans like Roth 401(k)
  • Life Insurance

Step 7 – Withhold State Payroll Taxes:

As you are done with Federal Payroll Taxes, now it's time to discuss State Payroll Taxes. The very first State Payroll Tax is State Income Tax charged by Pennsylvania State on employee's paycheck. Another one is State Unemployment Insurance (SUI) tax that is to be paid by both employers and employees.


Pennsylvania State Income Tax

Like Federal Income tax, Employers are required to withhold State Income tax from the employee's paycheck, at a flat rate of 3.07%.


State Unemployment Insurance (SUI) Tax and Unemployment Tax Contribution

The State Unemployment Insurance (SUI) Tax is an employee-and-employer-funded program that provides temporary income to unemployed workers who have lost their job without fault of their own.

The state doesn't charge in Pennsylvania State Disability Insurance (SDI) Tax. However, it does require the employers to pay Pennsylvania State Unemployment Insurance (SUI) tax, at the rate ranging from 1.2905% to 9.933% (These rates include 5.4% surcharge adjustment, 0% interest tax factor and 0.50% additional contribution tax) on a first $10,000 (in 2020) earned in wages by each employee in a year. However, new employers are given relief as they only have to pay a flat rate of 3.689%. Moreover, Construction workers are expected to pay a flat rate of 10.2238% (for 2020).

Additionally, both employees are also required to pay 0.06% of their gross wage as Unemployment Tax Contribution.


Step 8 – Withhold Local Payroll Taxes:

Over 2500 municipalities and 472 school districts levy Local Income tax on employees. This tax is charged at the rates depending on where you work. Rates for some of the major municipalities and school districts are as follow:

City Rate
Aliquippa 1.500%
Allentown 1.975%
Altoona 1.600%
Baldwin 1.000%
Beaver Falls 1.500%
Bellevue 1.500%
Berwick 1.000%
Bethel Park 1.400%
Bethlehem 1.000%
Bloomsburg 1.560%
Bradford 1.000%
Brentwood 1.000%
Bristol 0.500%
Brookhaven 1.000%
Butler 1.000%
Canonsburg 1.000%
Carbondale 2.500%
Carlisle 1.600%
Carnegie 1.000%
Castle Shannon 1.000%
Chambersburg 1.700%
Chester 2.750%
Coatesville 2.500%
Columbia 1.000%
Darby 1.000%
Dormont 1.000%
Doylestown 1.000%
Dunmore 1.000%
East Stroudsburg 1.000%
Easton 1.950%
Economy 1.000%
Elizabethtown 1.000%
Emmaus 1.000%
Ephrata 1.000%
Erie 1.650%
Franklin Park 1.000%
Greensburg 1.650%
Grove City 1.000%
Hanover 1.000%
Harrisburg 2.000%
Hazleton 2.750%
Hermitage 2.250%
Indiana 1.250%
Jeannette 1.850%
Jefferson Hills 1.000%
Johnstown 1.500%
Kingston 1.550%
Lancaster 1.100%
Lansdale 1.000%
Latrobe 1.400%
Lebanon 1.900%
Lewistown 1.350%
Lititz 1.150%
Lock Haven 1.500%
Lower Burrell 1.000%
McKeesport 1.700%
Meadville 1.000%
Mechanicsburg 1.700%
Middletown 1.750%
Millersville 1.000%
Monroeville 1.500%
Munhall 1.000%
Murrysville 1.000%
Nanticoke 2.250%
New Castle 2.100%
New Kensington 1.000%
Norristown 2.100%
Northampton 1.000%
Oil City 1.000%
Old Forge 1.000%
Perkasie 1.500%
Philadelphia 3.8712%
Phoenixville 1.000%
Pittsburgh 1.500%
Pleasant Hills 1.000%
Plum 1.000%
Pottstown 1.000%
Pottsville 1.000%
Quakertown 1.500%
Reading 3.600%
Scranton 3.400%
Sharon 2.250%
St. Marys 1.200%
State College 2.250%
Sunbury 1.000%
Swissvale 1.000%
Uniontown 1.000%
Warren 2.700%
Washington 1.200%
Waynesburg 1.000%
West Chester 1.250%
West Mifflin 1.000%
Whitehall 1.500%
Wilkes Barre 3.000%
Wilkinsburg 1.000%
Williamsport 2.000%
Wyomissing 1.000%
Yeadon 1.000%
York 1.250%

Step 9 – Calculate Pay Check:

Now that you are done with all payroll taxes and calculated the net take-home pay of an employee, it's time to cut the paycheck. Moreover, you, as an employer, must pay your portion of FICA tax along with FUTA and SUI tax in full and on time regularly.


Federal and Pennsylvania State Payroll Laws:

  • The Pennsylvania law requires the employees to be paid on regular paydays designated in advance by the employer. If there is no contract than employers are required to pay on at least semi-monthly pay frequency. Moreover, with a semi-monthly pay period, wages must be paid within 15 days of the end of the pay period.
  • Both Federal and State law requires the employers of Pennsylvania to pay at least the minimum wage rate of $7.25 to their employees, unless or otherwise exempted. Moreover, the law also requires the employers to pay overtime at time and half of regular hourly rate for every excess hour their non-exempted employee works after 40 hours in a workweek. Employees exempted from Overtime, and Minimum wage laws include:
    1. Executive, Administrative, and Professional employees
    2. Supervisors who are employed solely to supervise
    3. bookkeeper, case manager, secretary, medical coder, nurse, social worker, advocate for individuals with disabilities, help desk support specialist, inspector, and mortgage loan officer.
    4. Outside salespersons
    5. You can find further details about overtime and minimum wage laws and exemptions here.
  • Employers of Pennsylvania are required to follow both the new federal overtime rules and the overtime requirements of Pennsylvania's Minimum Wage Act. Moreover, if there are differences between the two laws, employers should follow the rule that provides a more significant benefit to the employee.
  • The Pennsylvania law requires the employees to provide break periods of at least 30 minutes to Youth employees (of ages 14 through 17) who work five or more consecutive hours. However, employees age 18 and above are exempted from this law.
  • Pennsylvania employers are not required to provide employees with either paid or unpaid vacation benefits, sick leave benefits, holiday leaves, Jury duty leaves, voting leave, and bereavement leave.
Also Check: Pennsylvania Sales and Reverse Sales tax Calculator to Calculate the amount of tax included in a gross price as well as the amount you should add to a net price.

FAQs

Answer: The federal tax is deducted from a paycheck in Pennsylvania-PA at the rate ranging between 0% and 37%, distributed in seven tax brackets, dependent on income level and filing status.

Answer: Following are the payroll taxes taken out of employee's paycheck in Pennsylvania:

  • Federal Income Tax: This tax is charged at the rate ranging between 0% and 37%, distributed in seven tax brackets, dependent on income level and filing status
  • FICA – Social Security: This tax is taken out from paycheck at the rate of 6.2% on employee's taxable wages, up to a wage limit of $137,700.
  • FICA – Medicare: This tax is levied at 1.45% of employee's taxable wages until they have earned $200,000 in a calendar year
  • FICA – Additional Medicare: If the employee's taxable wages exceed $200,000 threshold in a calendar year, he or she is required to may additional Medicare surtax of 0.9%.
  • State Income Tax: This tax is withheld at a flat rate of 3.07%, regardless of income level and filing status.
  • Local Earned Income Tax: This tax is charged by municipalities and school districts, depending on where you work.
  • Unemployment Tax Contribution: This contribution is taken out at the rate of 0.06% of gross wages.

Answer: Following payroll taxes, the employers pay in Pennsylvania:

  • FICA - Social Security: This tax is paid at the rate of 6.2% on each employee's taxable wages, up to a wage limit of $137,700.
  • FICA – Medicare: This tax is paid at 1.45% of each employee's taxable wages until they have earned $200,000 in a calendar year
  • FUTA: This tax is charged at a rate of 6% of the first $7,000 taxable income of each employee.
  • State Unemployment Insurance (SUI) tax: The employer funds this tax at the rate ranging between 1.2905% and 9.933% on the first $10,000 earned by each employee. However, new employers pay 3.689%, and construction employers pay 10.2238%.
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