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PA Wage Payment & Collection Law

Pennsylvania Paystub Generator

Generate PA-compliant paystubs with accurate flat 3.07% state tax and local earned income tax calculations. Meets all PA legal requirements.

Starting at $8.99 • PA state + local taxes calculated automatically

PA State Tax

3.07%

Flat rate

Local EIT

1-2%

Most municipalities

Philadelphia Wage Tax

3.75%

Residents

FICA

7.65%

SS + Medicare

Pennsylvania Paystub Legal Requirements

The PA Wage Payment and Collection Law (Act 329) sets strict requirements for employer wage statements

PA Wage Payment and Collection Law (Act 329)
1

Employer must provide written statement of wages earned

2

All deductions must be itemized

3

Pay frequency must follow PA law (semi-monthly for most)

4

Employee must receive statement each pay period

5

Records must be kept for at least 3 years

Fully Compliant with Act 329

Every paystub generated with MakePaystubPro meets all PA Wage Payment and Collection Law requirements.

Understanding Pennsylvania's Unique Tax Layers

PA has a multi-layered tax system with state, local, and city taxes that all appear on paystubs

PA State Income Tax

Flat 3.07% on all compensation — Pennsylvania has NO standard deduction and NO personal exemption for state income tax. Every dollar of earned income is taxed at the same flat rate.

Local Earned Income Tax (EIT)

Most PA municipalities levy a 1-2% EIT on earned income, split between the municipality and school district. The exact rate depends on your municipality of residence.

Philadelphia Wage Tax

Philadelphia residents pay 3.75% city wage tax — one of the highest city taxes in the US. Non-residents working in Philadelphia pay 3.44%.

Local Services Tax (LST)

Up to $52 per year levied by many PA municipalities on anyone working within their jurisdiction, regardless of where they live. Typically deducted about $1 per week.

Pennsylvania Wage Violation Penalties

Non-compliance with PA wage laws carries serious consequences

Pennsylvania Takes Wage Violations Seriously

Employers who fail to comply with PA's Wage Payment and Collection Law face both civil and criminal penalties.

Unpaid Wages

Wages + 25% liquidated damages

Employee can recover all unpaid wages plus 25% liquidated damages

Willful Violations

Fines up to $300 + 90 days

Criminal penalties including fines up to $300 and imprisonment up to 90 days

Record Keeping

3-year retention required

Employers must maintain payroll records for 3 years or face penalties

What's on a Pennsylvania Paystub

PA paystubs include multiple tax layers unique to the Commonwealth

Employee & employer info
Pay period dates
Gross wages
Federal income tax
PA state income tax (3.07%)
Local EIT (varies by municipality)
Philadelphia wage tax (if applicable)
LST deduction (if applicable)
Social Security (6.2%)
Medicare (1.45%)
SUI contributions
Voluntary deductions
YTD totals
Net pay

Paystubs for All Pennsylvania Cities

Our PA paystub generator works for employers and employees across the Commonwealth

Philadelphia
Pittsburgh
Allentown
Reading
Erie
Scranton
Bethlehem
Lancaster
Harrisburg
York
State College
Wilkes-Barre

Pennsylvania Paystub FAQ

What is Pennsylvania's state income tax rate?

Pennsylvania has a flat state income tax rate of 3.07%, one of the lowest flat rates in the nation. Unlike most states, PA does not offer a standard deduction or personal exemptions for state income tax — the 3.07% applies to virtually all compensation.

What is the Philadelphia wage tax?

Philadelphia levies a city wage tax of 3.75% on residents and 3.44% on non-residents who work in Philadelphia. This is in addition to the 3.07% PA state income tax and federal taxes, making Philadelphia one of the highest-taxed cities for wage earners in the US.

What is Pennsylvania's local earned income tax (EIT)?

Most Pennsylvania municipalities levy a local earned income tax (EIT) typically ranging from 1% to 2%, split between the municipality and the school district. The exact rate depends on your municipality of residence. This appears as a separate line item on PA paystubs.

Does Pennsylvania require employers to provide paystubs?

Yes, under the PA Wage Payment and Collection Law (Act 329), employers must provide employees with written statements showing wages earned and deductions made each pay period. Failure to comply can result in penalties including 25% liquidated damages.

What is the Local Services Tax (LST) in Pennsylvania?

The LST is a tax of up to $52 per year levied by many Pennsylvania municipalities on anyone who works within their jurisdiction, regardless of where they live. It's typically deducted in small amounts each pay period (about $1/week).

How do PA taxes compare to neighboring states?

PA's flat 3.07% state rate is lower than New York (4-10.9%) and New Jersey (1.4-10.75%), but the addition of local EIT (1-2%) and especially Philadelphia's wage tax (3.75%) can make total tax burden higher in certain areas. PA is competitive for workers outside Philadelphia.

Create Your Pennsylvania Paystub

Accurate PA state tax, local EIT, and Philadelphia wage tax calculations included.

Generate PA Paystub

Starting at $8.99 • PA state + local taxes calculated automatically