Payroll and HR Services in Pennsylvania

CoAd for Pennsylvania businesses. Built for the way you work.

Pennsylvania still runs on the $7.25 federal minimum wage and has no statewide paid leave, so the rules that matter are local: Philadelphia's wage tax, sick leave, fair chance and fair workweek ordinances, Pittsburgh's sick days and payroll expense tax, and a different earned income tax rate in every municipality. CoAd runs your payroll, keeps you compliant, and gives you a managed HR team that already knows the rules.

Act 32 local earned income tax withholding with the right PSD codes

Philadelphia Wage Tax, Pittsburgh and Scranton employer taxes filed for you

Paid sick leave accrual that follows the Philadelphia and Pittsburgh ordinances

A dedicated HR team for Philadelphia's fair chance, fair workweek and wage equity rules

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CoAd services for Pennsylvania businesses

Payroll and managed HR, built for Pennsylvania.

Pick the service you need today. Both run on CoAdQuantum, so you can start with payroll and add a managed HR team later without switching systems.

Payroll

Payroll that already knows Pennsylvania.

Run payroll in minutes with CoAdQuantum. Act 32 local withholding, the Philadelphia Wage Tax, city sick leave accruals and overtime rules are built in, and your federal, state and local taxes are calculated, filed and paid on time.

Act 32 earned income tax withholding with the right PSD codes for every employee's home and work location
Philadelphia Wage Tax, Pittsburgh Payroll Expense Tax and Scranton Payroll Preparation Tax filed for you
Paid sick leave accrual that follows the Philadelphia and Pittsburgh ordinances
Federal, state and local tax filing with year-end W-2s and 1099s

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Payroll rules by city

How Pennsylvania's largest cities differ from state payroll rules.

Pennsylvania preempts local minimum wages but not local taxes or paid leave. Every city withholds its own earned income tax, and Philadelphia, Pittsburgh and Scranton add employer-side taxes of their own. Here is what changes once you cross a city line.

Local rule differs from the state default Defaults to Pennsylvania state

Payroll rule differences versus Pennsylvania state defaults in the largest Pennsylvania cities
City	Minimum wage	Paid sick leave	Local payroll taxes, registration and county notes
PhiladelphiaPhiladelphia County (consolidated)	Defaults to Pennsylvania state ($7.25/hr). The city's $15 minimum wage standard applies only to city employees and contractors.	40 hours per year, accrued at 1 hour per 40 worked in the city; paid at employers with 10+ employees, unpaid below that. The 2025 POWER Act tightened enforcement and poster rules.	Wage Tax of 3.735% (residents) and 3.425% (nonresidents working in the city) from July 1, 2026; register on the Philadelphia Tax Center within 30 days of hiring. Commercial Activity License and BIRT account required (2025 BIRT: 5.71% on net income, 1.41 mills on gross receipts). No Local Services Tax. Consolidated city and county.
PittsburghAllegheny County	Defaults to Pennsylvania state.	72 hours per year at employers with 15+ employees, 48 hours below that (expanded January 1, 2026), accrued at 1 hour per 30 worked; posted notice and 2 years of records.	Earned income tax of 3% for residents (1% city plus 2% schools) and 1% for nonresidents, plus a $52 Local Services Tax. Employer Payroll Expense Tax of 0.55% of gross compensation, filed quarterly (Form ET-1); register within 15 days of starting business. Allegheny County's own sick leave law (26+ employees, 40 hours) applies only outside the city.
AllentownLehigh County	Defaults to Pennsylvania state.	Defaults to Pennsylvania state.	Earned income tax of 1.975% for residents and 1.28% for nonresidents, $52 Local Services Tax, and an annual Business Privilege Tax on gross receipts. Lehigh County levies no employer taxes.
ReadingBerks County	Defaults to Pennsylvania state.	Defaults to Pennsylvania state.	Earned income tax of 3.60% for residents (2.1% city plus 1.5% school district) and 1.00% for nonresidents, $52 Local Services Tax, and a Business Privilege Tax (1.0 to 2.25 mills). Berks County levies no employer taxes.
ErieErie County	Defaults to Pennsylvania state.	Defaults to Pennsylvania state.	Flat 1.65% earned income tax for residents and nonresidents alike (includes a 0.65% distressed-pension levy), plus a $52 Local Services Tax. Erie County levies no employer taxes.
ScrantonLackawanna County	Defaults to Pennsylvania state.	Defaults to Pennsylvania state.	Earned income tax of 3.4% for residents and 1% for nonresidents, a $156 Local Services Tax (above the usual $52 cap, exempt below $15,600), and an employer Payroll Preparation Tax of 1.034% of total payroll (city and school district combined), filed quarterly with Berkheimer. Lackawanna County levies no employer taxes.

State defaults, as of September 29, 2026: minimum wage $7.25/hr with a $2.83 tipped cash wage (a $15 phase-in passed the House in March 2026 but is not law); no statewide paid sick or family leave; Act 32 local earned income tax withheld at the higher of the employee's resident rate and the work-location rate, tracked by PSD code; Local Services Tax capped at $52 with an exemption below $12,000 (distressed cities may levy more); Act 112 of 2006 preempts local minimum wages, while local paid leave ordinances stand. Sample content for staging review, confirm with counsel before publishing. Sources: Philadelphia Wage Tax, Pittsburgh Department of Finance, PA DCED local income tax, City of Scranton.

Managed HR Services rules by city

Hiring, scheduling and benefits rules that change by city.

With no state paid leave or salary history law, Pennsylvania's cities fill the gap unevenly. Philadelphia has the deepest local code in the state, Pittsburgh has paid sick days, and the rest add human relations ordinances. This is what a managed HR team tracks for you in the six largest cities.

Local rule differs from the state default Defaults to Pennsylvania state

HR and employment rule differences versus Pennsylvania state defaults in the largest Pennsylvania cities
City	Hiring and scheduling	Benefits, leave and pay practices	Industry rules, notices and county
PhiladelphiaPhiladelphia County (consolidated)	Fair Criminal Record Screening Standards: every employer with 1+ employees; no criminal history inquiry until after a conditional offer, an individualized assessment, written notice and 10 business days to respond; from January 6, 2026 a 4-year misdemeanor lookback and a fair chance statement in postings. Fair Workweek: retail, food service and hospitality employers with 250+ employees and 30+ locations must post schedules 14 days ahead with predictability pay.	Wage Equity Ordinance bans salary history questions. Commuter Transit Benefit required at 50+ employees. Domestic Worker Bill of Rights. Up to 8 weeks (50+ employees) or 4 weeks of unpaid domestic violence leave. Paid sick leave (see payroll table).	Wage Theft Ordinance with a 3-year lookback and posted notice; displaced contract worker retention (90 days) in security, janitorial, food service, hotel, healthcare, parking and airport work. City posters for sick leave, wage theft, fair chance, fair workweek, pregnancy accommodation and domestic violence leave, plus an annual EITC notice with W-2s. Consolidated city and county.
PittsburghAllegheny County	Defaults to Pennsylvania state. Ban-the-box and salary history rules cover city hiring and city contractors only.	Paid Sick Days Act (72 or 48 hours, see payroll table); no other local benefit mandate.	Post the Paid Sick Days notice and show balances on pay stubs. City anti-discrimination code (5+ employees) adds gender identity, hairstyle, citizenship status, preferred language and domestic violence survivor status (amended November 2025). Allegheny County Human Relations ordinance applies countywide.
AllentownLehigh County	Defaults to Pennsylvania state.	Defaults to Pennsylvania state.	Allentown Human Relations Ordinance covers employers with 1+ employees and adds classes such as source of income, height, weight, GED status and domestic violence victim status. Lehigh County's ordinance (June 2024) adds more, including age 35 and over.
ReadingBerks County	Defaults to Pennsylvania state.	Defaults to Pennsylvania state.	Reading Human Relations Ordinance (City Code 23-504 and 23-505) bars employment discrimination, enforced by the city commission. County rules: defaults to Pennsylvania state.
ErieErie County	Defaults to Pennsylvania state.	Defaults to Pennsylvania state.	City equal opportunity rules bind only city contractors ($10,000+ contracts); private employers follow the Erie County Human Relations ordinance and state law.
ScrantonLackawanna County	Defaults to Pennsylvania state.	Defaults to Pennsylvania state.	Scranton Human Relations ordinance covers employers with 4+ employees and adds sexual orientation, gender identity and marital status. County rules: defaults to Pennsylvania state.

State defaults, as of September 29, 2026: no statewide ban-the-box (CHRIA lets employers weigh convictions only where job-related, and Clean Slate sealed records are off limits); no salary history ban or pay range posting law for private employers; no state paid sick or family leave (federal FMLA and WARN apply); Pennsylvania Human Relations Act for employers with 4+ employees, including sexual orientation, gender identity and, from January 24, 2026, hair texture and protective hairstyles; state posters (Minimum Wage Law, Equal Pay, Child Labor, unemployment, workers' compensation). Sample content for staging review, confirm with counsel before publishing. Sources: Philadelphia Office of Worker Protections, Pittsburgh Paid Sick Days, PA Human Relations Commission.

CoAd support in Pennsylvania

Local support, wherever you are in Pennsylvania.

Our nearest office is in Wayne, New Jersey, and our payroll and HR specialists support Pennsylvania employers by phone, chat and video every business day.

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500 Valley Road, Suite 202, Wayne, NJ 07470

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+1 (855) 351-4731, Monday through Friday.

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Client support

Help center, chat and phone support for CoAdQuantum users.

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Book time with a payroll or HR specialist who works with Pennsylvania employers.

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FAQ

Questions Pennsylvania employers ask us.

The answers below are a starting point. A CoAd specialist can walk through the rules for your cities and your headcount.

How does local earned income tax withholding work in Pennsylvania?

Under Act 32, every employer with a Pennsylvania worksite withholds local earned income tax at the higher of the employee's resident rate or the work-location rate, tracked with 6-digit PSD codes from each employee's Residency Certification Form, and remits it to the work-location collector. Philadelphia runs its own Wage Tax outside Act 32. CoAdQuantum assigns the codes and files with every collector for you.

What is the Philadelphia Wage Tax and who pays it?

Employers withhold 3.735 percent from Philadelphia residents and 3.425 percent from nonresidents who work in the city, at the rates effective July 1, 2026, and remit on the schedule the Philadelphia Tax Center assigns. You also need a Commercial Activity License and a BIRT account. CoAd handles registration, withholding and filings.

Do we have to offer paid sick leave in Pennsylvania?

There is no statewide requirement, but Philadelphia (40 hours a year, paid at 10 or more employees), Pittsburgh (72 hours at 15 or more employees, 48 hours below that, since January 1, 2026) and Allegheny County outside Pittsburgh (40 hours at 26 or more employees) each require it. CoAd accrues the right amount for each work location and prints balances on pay stubs where required.

What is the Pennsylvania minimum wage?

$7.25 per hour with a $2.83 tipped cash wage, unchanged since 2009. A $15 phase-in passed the House in March 2026 but is not law. State law also bars cities from setting their own minimum wage, so Philadelphia's $15 standard reaches only city contractors.

Which Philadelphia HR ordinances do most employers miss?

The Fair Criminal Record Screening Standards (no criminal history questions until after a conditional offer, for every employer), the Wage Equity Ordinance (no salary history questions), the commuter benefit requirement at 50 or more employees, and Fair Workweek scheduling for large retail, food service and hospitality chains. Managed HR Services keeps your postings, applications and posters aligned with each one.

Does CoAd have an office in Pennsylvania?

Our nearest office is at 500 Valley Road, Suite 202 in Wayne, New Jersey. Pennsylvania employers are supported by phone, chat and video every business day, with a specialist who works with Pennsylvania businesses on your account.

Can I start with Payroll and add Managed HR Services later?

Yes. Both run on CoAdQuantum, so adding a dedicated HR team later does not mean a new system. Many Pennsylvania clients add HR when they open a Philadelphia or Pittsburgh location and the city ordinances start to apply.