Hiring Your First Employee in Pennsylvania (2026)
The Pennsylvania-specific steps for a first W-2 hire, layered on top of the federal checklist. Every figure links to the state agency or official source we checked.
Minimum wage
$7.25/hour, the same as the federal minimum.
State unemployment tax (SUTA)
Newly liable non-construction employers pay 3.822% in 2026, which includes the 9.2% surcharge. Construction employers pay a different rate. The taxable wage base is $10,000 per employee. Pennsylvania also withholds 0.07% of all wages from employees for UC. That's an employee deduction, not an employer cost.
Income tax withholding registration
Register through the state's online business registration (myPATH / PA-100) for employer withholding and unemployment compensation. Most Pennsylvania employers also have to withhold local Earned Income Tax for the employee's municipality and school district.
New-hire reporting
Report within 20 days of the hire date (23 Pa.C.S. § 4392) through PA CareerLink.
Workers' compensation
Required once you have one or more employees, including part-time workers, unless every employee qualifies for an exemption.
Paid sick leave, family leave & disability
We found no statewide paid sick leave law for Pennsylvania's private employers. Philadelphia and Pittsburgh do have local paid sick leave ordinances, so check the city where the employee works. Pennsylvania has no state paid family leave or disability insurance program.
Required posters
L&I's mandatory postings include the Minimum Wage Law poster, the Abstract of the Equal Pay Law, the unemployment compensation notice, and the workers' comp posting (plus child labor posters if you employ minors). Federal posters apply too; the DOL FirstStep Poster Advisor shows which ones. Official posters are free.
Worked example: one full-time employee at $18/hour
This uses the same assumptions as our employee cost calculator: $18/hour, 40 hours a week, 52 weeks, 2026 federal rates, and Pennsylvania's new-employer SUTA rate. Workers' comp is a placeholder; your insurer's rate for the job class will differ.
| Wages: $18 × 40 h × 52 weeks | $37,440.00 |
| Social Security (6.2%) | $2,321.28 |
| Medicare (1.45%) | $542.88 |
| FUTA (0.6% of first $7,000) | $42.00 |
| PA unemployment: 3.822% of first $10,000 | $382.20 |
| Workers' comp, illustrative $1.00 per $100 of payroll | $374.40 |
| Total before benefits | $41,102.76 |
That's 1.10× wages, or about $19.76 per hour paid, before benefits, paid leave, and payroll software. $18/hour is above Pennsylvania's 2026 minimum wage.
FAQ
What is the Pennsylvania SUTA rate for new employers in 2026?
Newly liable non-construction employers pay 3.822% in 2026, which includes the 9.2% surcharge. Construction employers pay a different rate. The taxable wage base is $10,000 per employee. Pennsylvania also withholds 0.07% of all wages from employees for UC. That's an employee deduction, not an employer cost.
Is workers' comp required for my first employee in Pennsylvania?
Required once you have one or more employees, including part-time workers, unless every employee qualifies for an exemption.