Do I need a permit to hire employees?

Hiring Employees in Pennsylvania: Permit Requirements

In Pennsylvania, you generally do not need a specific permit solely to hire employees. However, there are important registration and compliance steps to complete before onboarding workers.

Key Operational Steps Before Hiring

• Register Your Business: Ensure your business is properly registered with the Pennsylvania Department of State.
• Obtain an Employer Identification Number (EIN): Required from the IRS for tax reporting and payroll purposes.
• Register for State Employer Accounts: Register with the Pennsylvania Department of Revenue for state withholding taxes and with the Department of Labor & Industry for unemployment compensation insurance.
• Workers’ Compensation Insurance: Pennsylvania mandates most employers to carry workers’ compensation insurance before hiring employees.

Additional Compliance and Recordkeeping

• Employee Classification: Correctly classify workers as employees or independent contractors to ensure compliance with payroll tax and labor laws.
• New Hire Reporting: Report newly hired employees to the Pennsylvania New Hire Reporting Program within 20 days of hire.
• Payroll Setup: Establish payroll systems to handle wage payments, tax withholdings, and reporting requirements.

As of 2026, while no separate "hiring permit" is required, following these operational steps ensures compliance with Pennsylvania’s employment regulations and facilitates smooth business operations.