Question 1

Is PEO registration required in Pennsylvania?

Accepted Answer

Yes. PEOs must register with the Pennsylvania Department of Labor and Industry. The registration is considered light touch; the heavier requirement is filing quarterly PEO reports that disclose client terminations during the quarter.

Question 2

How does workers' compensation work for PEOs in Pennsylvania?

Accepted Answer

Workers' compensation coverage for leased employees is administered through the State Workers' Insurance Fund (SWIF). PEO policies require a completed SWIF application for the PEO and each client, signed contracts between the parties, and employee lists or I-9s for each client.

Question 3

What is the SUI taxable wage base in Pennsylvania?

Accepted Answer

The 2026 SUI taxable wage base in Pennsylvania is $10,000, which has remained unchanged since 2014. The new employer rate is 3.822% as of January 2025, which is on the higher side among states.

Question 4

Does Pennsylvania require employee withholding for unemployment insurance?

Accepted Answer

Yes. Pennsylvania is one of only three states where employees also contribute to unemployment insurance. A 0.07% withholding applies to total wages, collected from workers alongside the employer's contribution.

Question 5

What quarterly reporting is required for PEOs in Pennsylvania?

Accepted Answer

Beyond normal quarterly employer reports, PEOs must file a separate PEO report each quarter through the Department of Labor and Industry's portal, disclosing client terminations during the quarter. This gives the state a running map of which clients each PEO serves.

Question 6

What is the minimum wage in Pennsylvania?

Accepted Answer

Pennsylvania's minimum wage is the federal minimum wage of $7.25 per hour. There is no state paid family and medical leave program.

Pennsylvania PEO FAQs: Registration, SWIF Coverage, and Employee Withholding

Frequently Asked Questions