# Month-end close: payroll tax in Pennsylvania

Pennsylvania withholds a flat 3.07% and sets the deposit schedule from quarterly withholding: quarterly, monthly, semi-monthly or semi-weekly.

This is part of the [payroll checklist](/month-end-close-checklist/payroll). Do the [federal steps](/month-end-close-checklist/payroll/united-states) first. Pennsylvania income tax withholding is filed with the Pennsylvania Department of Revenue, and unemployment compensation (UC) with the Department of Labor & Industry.

**Rate.** Withholding is a flat 3.07% of compensation. State unemployment compensation has a $10,000 taxable wage base, and a 0.07% employee contribution on gross wages.

**Filing.** Deposits follow quarterly withholding: under $300 is quarterly, $300 to $999 monthly, $1,000 to $4,999.99 semi-monthly, and $5,000 or more semi-weekly. A quarterly withholding return, the W-3, is filed each quarter.

**Due.** Quarterly returns on April 30, July 31, November 2 and February 1, 2027. Monthly deposits on the 15th of the following month, except December's, due February 1, 2027. The annual reconciliation on January 31, 2027.

**The trap.** Late UC contributions, the employer's and employees', carry interest of 1% a month, 12% a year, charged for each month or part of a month.

## The month-end steps

1. **Check the withholding rate.** Pennsylvania personal income tax is withheld at a flat 3.07% of compensation, from resident and nonresident employees earning income in Pennsylvania [1]. Done when each paycheck's state withholding is 3.07% of compensation.
2. **Find the deposit schedule.** It follows total withholding per quarter [1]. Done when the schedule on file matches the client's quarterly withholding.

| # | Withholding per quarter | Schedule | Taxes due |
|---|---|---|---|
| 1 | Under $300 | Quarterly | The last day of April, July, October and January |
| 2 | $300 to $999 | Monthly | The 15th of the following month |
| 3 | $1,000 to $4,999.99 | Semi-monthly | Within three banking days of the close of the semi-monthly period |
| 4 | $5,000 or more ($20,000 a year) | Semi-weekly | The Wednesday following Wednesday, Thursday or Friday paydays, and the Friday following Saturday to Tuesday paydays |

3. **File the quarterly return.** The W-3 is filed each quarter. The 2026 return dates for quarterly, monthly, semi-monthly and semi-weekly filers are April 30, July 31, November 2 and February 1, 2027 [2] [1]. The annual withholding reconciliation (REV-1667), with the individual W-2 and 1099 statements, is due January 31, 2027 [2]. Done when each return ties to the quarter's withholding paid and the reconciliation is on the client's calendar.
4. **Check unemployment compensation.** The taxable wage base is $10,000. The employee contribution rate is 0.07%, applied to gross wages, and the employer withholds it from each employee's pay [3]. Done when the UC liability account ties to the contributions on the register.
5. **Know what late UC costs.** Interest on unpaid contributions, both the employer's and the employees', runs at 1% a month, 12% a year, for each month or part of a month from the due date to the date paid [3]. Done when the quarter's contributions were paid by their due date.
6. **Tie the liabilities.** Done when the withholding and UC accounts are at zero after the period's payments, or equal the amounts not yet due.

## Sources

1. Pennsylvania Department of Revenue, Employer withholding, read 2026-10-24: flat 3.07 percent of compensation; deposit schedule by quarterly withholding (under $300, $300 to $999, $1,000 to $4,999.99, $5,000 or more); quarterly withholding return W-3. <https://www.pa.gov/agencies/revenue/resources/tax-types-and-information/employer-withholding>
2. Pennsylvania Department of Revenue, REV-1716 (2026), read 2026-10-24: 2026 filing and remittance due dates; quarterly returns April 30, July 31, November 2 and February 1, 2027; REV-1667 annual reconciliation with W-2/1099 statements by January 31, 2027. <https://www.pa.gov/content/dam/copapwp-pagov/en/revenue/documents/formsandpublications/formsforbusinesses/employerwithholding/documents/2026_rev-1716.pdf>
3. Pennsylvania Department of Labor & Industry, Calculating contributions, penalties and interest, read 2026-10-24: taxable wage base $10,000; employee contribution rate 0.07 percent of gross wages; interest on late contributions 1.0 percent a month, 12 percent a year, per month or fraction of a month. <https://www.pa.gov/agencies/dli/resources/for-employers-and-educators/how-to-file/uc-tax/calculating-contributions--penalties-and-interest>

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Published 2026-10-24. Web page: https://www.bookkeepingforsmallbusiness.com/month-end-close-checklist/payroll/pennsylvania Part of [Month-end close: payroll liabilities by jurisdiction](https://www.bookkeepingforsmallbusiness.com/month-end-close-checklist/payroll).