What payroll taxes does a Pennsylvania employer pay?

Employers pay the employer half of FICA (6.2% Social Security up to $168,600 and 1.45% Medicare with no cap), federal FUTA (0.6% effective on the first $7,000), and Pennsylvania state unemployment insurance (SUI) on the first $10,000 of each employee's wages.

What is the Pennsylvania new-employer SUI rate?

For 2024 the standard new-employer contribution rate is roughly 3.689% (3.5% basic plus a 0.06% interest-factor surcharge and additional contribution), applied to the first $10,000 of taxable wages per employee. Experienced employers receive an assigned rate.

Does Pennsylvania have employer-paid SDI or PFML?

No. Pennsylvania has no state-mandated short-term disability insurance (SDI) or paid family and medical leave (PFML) employer payroll tax. The main state employer cost is SUI; there is also a small employee-paid UC withholding.

What is the PA employee UC withholding?

Pennsylvania withholds a small employee unemployment compensation tax — 0.07% of total wages with no wage cap for 2024. It is deducted from the employee's pay, not paid by the employer, but the employer must remit it.

Why is FUTA only 0.6% instead of 6%?

The federal FUTA rate is 6.0% on the first $7,000 of wages, but employers in states that pay their SUI on time receive a 5.4% credit, leaving a net effective rate of 0.6%. Pennsylvania is a credit-reduction-free state, so 0.6% applies.

Pennsylvania Employer Payroll Tax Calculator

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The Pennsylvania Employer Payroll Tax Calculator shows the true cost of employing someone in Pennsylvania beyond their salary. For each worker an employer pays the employer half of FICA, federal FUTA, and Pennsylvania state unemployment insurance (SUI) — and must also withhold and remit a small employee UC tax. Pennsylvania has no employer-paid SDI or PFML, which keeps its state payroll burden relatively light.

How it works

The tool applies each tax to its own wage base:

Employer Social Security = min(wage, $168,600) x 6.2%
Employer Medicare        = wage x 1.45%   (no cap)
FUTA                     = min(wage, $7,000) x 0.6%   (after 5.4% state credit)
PA SUI (employer)        = min(wage, $10,000) x your SUI rate
Employee UC (withheld)   = wage x 0.07%   (no cap)

The employer total is the sum of Social Security, Medicare, FUTA, and SUI — the amount the employer pays on top of the wage. The employee UC withholding is shown separately because it comes out of the worker’s pay, though the employer remits it.

The default SUI rate is Pennsylvania’s new-employer rate (~3.689%); established employers should enter the experience-based rate the state assigns them each year.

Tips and notes

Wage bases differ. Social Security caps at $168,600, FUTA at the first $7,000, and PA SUI at the first $10,000 — so for high earners these taxes stop accruing at different points in the year.
Your SUI rate varies. A favorable experience rating can drop your SUI well below the new-employer rate; a poor one can raise it. Always use your assigned rate for accuracy.
No SDI/PFML. Unlike states such as California or New Jersey, Pennsylvania imposes no employer disability or paid-leave payroll tax.
All calculations run locally in your browser and are never uploaded.