Pennsylvania employer payroll tax calculator 2026
Hiring in Pennsylvania? New Pennsylvania employers pay 3.822% state unemployment tax on the first $10,000 of each employee's wages, on top of the federal 6.2% Social Security, 1.45% Medicare and FUTA. For a $60,000 employee that's about $5,014 a year in employer payroll taxes — $382.20 of it to Pennsylvania.
| Wages | $60,000.00 |
| Employer Social Security | $3,720.00 |
| Employer Medicare | $870.00 |
| FUTA (0.6% on $7,000.00) | $42.00 |
| State unemployment insurance (SUI) (3.822% on $10,000.00) | $382.20 |
| Employer payroll taxes | $5,014.20 |
| Total cost before benefits | $65,014.20 |
Also withheld from the employee (not your cost): $42.00 of Pennsylvania unemployment tax.
Per two-week payroll: $2,500.55. Add health insurance, retirement and workers' compensation in the cost of an employee calculator.
Pennsylvania unemployment tax (SUTA) for new employers
Newly liable non-construction employers pay 3.822% on the first $10,000; employees pay 0.07% of all wages. The rate is 3.5% basic rate + 9.2% surcharge.
After a few years the state assigns your own rate based on your layoff history; enter it in the calculator once you have it. Your rate also earns the usual federal FUTA credit: pay Pennsylvania on time and FUTA is 0.6% on the first $7,000. If Pennsylvania ends up a credit-reduction state for the year (the Department of Labor lists them each November), FUTA is higher.
Other Pennsylvania payroll programs
- Local earned income tax and the local services tax are withheld from employees' pay.
What an employee costs in Pennsylvania
| Salary | Federal employer taxes | Pennsylvania employer taxes | Total cost | Taxes as % of pay |
|---|---|---|---|---|
| $40,000 | $3,102.00 | $382.20 | $43,484.20 | 8.7% |
| $60,000 | $4,632.00 | $382.20 | $65,014.20 | 8.4% |
| $100,000 | $7,692.00 | $382.20 | $108,074.20 | 8.1% |
A year, before benefits. New-employer rates, 5 employees, full FUTA credit.
How much does a $40,000 employee cost in Pennsylvania?
About $43,484 a year: the $40,000 salary plus $3,102.00 of federal employer taxes and $382.20 of Pennsylvania employer taxes, before benefits. That's $1,672.47 per two-week payroll.
How much does a $60,000 employee cost in Pennsylvania?
About $65,014 a year: the $60,000 salary plus $4,632.00 of federal employer taxes and $382.20 of Pennsylvania employer taxes, before benefits. That's $2,500.55 per two-week payroll.
How much does a $100,000 employee cost in Pennsylvania?
About $108,074 a year: the $100,000 salary plus $7,692.00 of federal employer taxes and $382.20 of Pennsylvania employer taxes, before benefits. That's $4,156.70 per two-week payroll.
Both halves of one paycheck
On a $60,000 salary paid every two weeks, the employee sees $11,494 a year taken out of pay — federal income tax, their own Social Security and Medicare and Pennsylvania taxes — and takes home $48,506 (single filer, standard W-4). That money is withheld from their wages, not an extra cost to you. On top of the salary, you pay $5,014.20 of employer taxes. See the employee's side line by line in the Pennsylvania paycheck calculator.
More employer tools
Cost of an employee (benefits and cost per hour) · Employer payroll tax calculator (all states) · Employer payroll taxes guide
Pennsylvania figures checked 2026-09-28 against the state's own publications. Planning estimate, not a payroll return: your rate notice and the state's rules decide the final amount.
Sources
- Pennsylvania L&I — Yearly tax highlights — taxable wage base $10,000; employee withholding 0.07%; newly liable non-construction rate .038220; construction .105924 (checked 2026-09-28)
- IRS Publication 15 (2026), Employer's Tax Guide — 2026 employer Social Security and Medicare rates and wage limits; FUTA
- IRS — FUTA credit reduction — 6.0% FUTA on the first $7,000; usual 5.4% credit; credit-reduction states lose part of the credit
- U.S. Department of Labor — FUTA credit reductions — the list of credit-reduction states for each year (checked 2026-09-28)
Questions
What is the Pennsylvania SUTA rate for new employers?
3.822% in 2026 (3.5% basic rate + 9.2% surcharge), on the first $10,000 of each employee's wages. Newly liable non-construction employers pay 3.822% on the first $10,000; employees pay 0.07% of all wages.
What is the Pennsylvania unemployment tax wage base for 2026?
$10,000 per employee per year. Employees also pay 0.07% through payroll.
How much does it cost to employ someone for $60,000 in Pennsylvania?
About $65,014 a year before benefits: $4,632.00 of federal employer taxes and $382.20 for Pennsylvania, at the new-employer rate with 5 employees.