What payroll deadlines should employers track?

Payroll Tax Deadlines Employers Must Track in Pennsylvania

Managing payroll taxes in Pennsylvania requires careful attention to multiple deadlines to ensure compliance and avoid penalties. Employers should establish a clear schedule for payroll tax filings and payments at both the state and federal levels.

Federal Payroll Tax Deadlines

• Federal Income Tax Withholding and Social Security/Medicare Taxes (FICA): Deposit schedule depends on your total tax liability. Most small employers deposit monthly, while larger employers may need to deposit semi-weekly. Use the Electronic Federal Tax Payment System (EFTPS) for timely payments.
• Form 941 (Employer's Quarterly Federal Tax Return): Due by the last day of the month following the end of each quarter:
  • Q1 (Jan-Mar): April 30
  • Q2 (Apr-Jun): July 31
  • Q3 (Jul-Sep): October 31
  • Q4 (Oct-Dec): January 31 of the following year
• Form W-2: Provide to employees by January 31 and file copies with the Social Security Administration by January 31.

Pennsylvania State Payroll Tax Deadlines

• State Income Tax Withholding: Employers must withhold Pennsylvania state income tax from employee wages and remit on a monthly or quarterly basis depending on the total tax withheld.
  • Monthly filers: Payment and filing due by the 15th of the following month.
  • Quarterly filers: Payment and filing due by the last day of the month following the quarter end.
• Local Earned Income Tax (EIT): Collected by local tax collection agencies; deadlines vary but typically align with state withholding deadlines. Confirm with the local tax authority.
• Unemployment Compensation Tax: Paid quarterly to the Pennsylvania Department of Labor & Industry. Payments are due by the last day of the month following the end of each quarter.

Operational Tips for Payroll Tax Compliance in Pennsylvania

• Automate Payroll Processing: Use payroll software that integrates federal and Pennsylvania tax rates and deadlines to reduce errors and ensure timely filings.
• Maintain Accurate Records: Keep detailed payroll records for at least four years to support tax filings and audits.
• Stay Updated: Tax rates and filing requirements can change. Review Pennsylvania Department of Revenue and IRS updates annually.
• Coordinate with Local Tax Agencies: Identify local tax jurisdictions for your employees and verify their specific filing deadlines and payment methods.