This section is intended to provide accurate and timely information on some, but not all the issues regarding farm labor. As time passes, some of this information may no longer be accurate, and the reader is cautioned to be aware of that. The material is not intended to provide legal, accounting, or other professional advice and should not be relied upon as such or as a substitute for such advice. Growers who desire such advice should seek independent professional counsel before acting on any information contained in this section.
Wage and Withholding
Considerations
Unemployment Compensation: State
Who must comply?
Employer eligibility rules for Pennsylvania Unemployment
Compensation are the same as for FUTA, except
for two areas. FUTA taxes exempt the wages of
children under the age of 21. Pennsylvania rules
exempt the wages only of children under the age
of 18. It is possible for an employer to be subject
to Pennsylvania Unemployment Compensation, but
exempt from FUTA. The wage base for Pennsylvania
Unemployment Compensation is $8000, compared to
$7000 for FUTA.
Cost to the employer
Contribution rates for employers vary. Beginning
rates are 3.5 percent. Rates change after the
employer establishes a payment record. At that
time, rates are determined by several components.
Currently, contribution rates vary from 2 to 9.7
percent on the first $8000 of taxable wages. These
rates are subject to periodic adjustments.
Tax deposits and forms
Form UC-2 and 2a is filed quarterly on or before
the last day of the month following the close
of the calendar quarter.
For more information contact your local office of the Pennsylvania State Job Service.
