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REMOTE EMPLOYEES

Hiring a remote employee in Pennsylvania

Your company is in another state and one employee lives and works from home in Pennsylvania. Which state's taxes apply, unemployment, paid leave and Pennsylvania's employer rules, each with its official source.

Facts from the official sources listed at the end of this page; the oldest was read from an archived copy dated September 26, 2026. For employers. General information, not legal or tax advice: confirm a rule with the agency before you rely on it.

Pennsylvania at a glance

Income tax
Pennsylvania withholding
Reciprocity
With Indiana, Maryland, New Jersey, Ohio, Virginia and West Virginia
Unemployment
$10,000 wage base, 3.822% new employer
Paid leave
None
New hire report
Within 20 days

Which state's taxes apply

Work state
Pennsylvania taxes wages for work done in Pennsylvania. Withhold Pennsylvania income tax on the employee's wages.Source: PA Department of Revenue, Employer Withholding (opens in a new tab), checked October 5, 2026
Withholding form
None: no PA withholding allowance certificate; REV-419 only to claim nonwithholdingSource: PA Department of Revenue, REV-415 Employer Withholding Information Guide (01-23, PDF) (opens in a new tab), checked October 5, 2026
Reciprocity
If your office is in Indiana: Pennsylvania residents working there are withheld for Pennsylvania, with WH-47. If your office is in Maryland: Pennsylvania residents working there are withheld for Pennsylvania, with Form MW507, line 5 (lines 6 and 7 for local tax). If your office is in New Jersey: Pennsylvania residents working there are withheld for Pennsylvania, with NJ-165. If your office is in Ohio: Pennsylvania residents working there are withheld for Pennsylvania, with IT 4 (Section III). If your office is in Virginia: Pennsylvania residents working there are withheld for Pennsylvania, with Form VA-4, line 3 (condition d). If your office is in West Virginia: Pennsylvania residents working there are withheld for Pennsylvania, with WV/IT-104NR.Source: Indiana DOR, Income Tax Information Bulletin #28 (December 2024, PDF) (opens in a new tab), checked October 5, 2026; Comptroller of Maryland, Form MW507, Employee's Maryland Withholding Exemption Certificate (2026, PDF) (opens in a new tab), checked October 5, 2026; NJ Division of Taxation, NJ-WT New Jersey Income Tax Withholding Instructions (September 2025) (PDF) (opens in a new tab), checked October 5, 2026; Ohio Department of Taxation, Form IT 4, Employee's Withholding Exemption Certificate (Rev. 01/24, PDF) (opens in a new tab), checked October 5, 2026; Virginia Tax, Form VA-4, Employee's Virginia Income Tax Withholding Exemption Certificate (Rev. 04/26, PDF) (opens in a new tab), checked October 5, 2026; West Virginia Tax Division, WV IT-104 Employee's Withholding Exemption Certificate and WV/IT-104NR Certificate of Nonresidence (Rev. 03/2023, PDF) (opens in a new tab), checked October 5, 2026
Convenience rules
If your company is in Connecticut, Delaware or New York, the employee is assigned to an office there and works there on some days, that state taxes the days worked from home in Pennsylvania for the employee's convenience.Source: Connecticut DRS, IP 2026(1), Connecticut Employer's Tax Guide, Circular CT (PDF) (opens in a new tab), checked October 6, 2026; Delaware Division of Revenue, 2025 Form PIT-NON Instructions, Non-Resident Individual Income Tax Return (PDF) (opens in a new tab), checked October 6, 2026; NYS DTF, TSB-M-06(5)I, New York Tax Treatment of Nonresidents and Part-Year Residents: Application of the Convenience of the Employer Test to Telecommuters and Others (May 15, 2006, PDF) (opens in a new tab), checked October 6, 2026
Office days in your company's state
That state's day limit, if it has one, decides whether it withholds on those days: see its page, or the helper below.
An employee from another state working in Pennsylvania
Pennsylvania sets no day count before a nonresident's wages for work there are withheld.Source: PA Department of Revenue, Employer Withholding (opens in a new tab), checked October 6, 2026

Where to withhold: two states

Pick your company's state, the state where the employee lives and works from home, and the days a year the employee works at your office. The answer reads each state's rules from the data on these pages.

Your company is in
Employee lives and works from home in
Days a year at your office
Assigned to an employer office in New YorkMatters only in the states with a convenience rule (Connecticut, Delaware, New Jersey, New York and Pennsylvania), and only with office days there.

Income tax withholding

  • Pennsylvania: all wages.

No New York withholding: the employee does no work in New York.

Unemployment

Pennsylvania: the employee works from home there, so the work is localized in Pennsylvania.

Simplified: resident credits, dollar tests, local taxes and a move during the year are not worked out here. Each state's rule and its source are on its page.

Unemployment

The employee works from home in Pennsylvania, so the work is localized in Pennsylvania: pay Pennsylvania unemployment tax, not your company state's.

Agency
Pennsylvania Department of Labor & Industry, Office of UC Tax ServicesSource: PA L&I, Unemployment Compensation Tax Services (opens in a new tab), checked October 5, 2026
Wage base
$10,000 Fixed by lawSource: PA L&I, Calculating Contributions, Penalties and Interest (opens in a new tab), checked October 5, 2026
New employer rate
3.822% 3.822% (3.5% x 109.2%); newly liable construction employers 10.5924% (9.7% x 109.2%) Surcharges included Construction 10.5924%Source: PA L&I, Form UC-820, Eligibility Criteria for 2026 Experience-Based Contribution Rate (rev. 09-25, PDF) (opens in a new tab), checked October 5, 2026

Open the account: Pennsylvania payroll tax registration

Pennsylvania has no paid leave program funded through payroll.

Pennsylvania employer rules

Employment law applies where the employee works, so these follow the employee into Pennsylvania.

Final pay
Fired: By the next regular payday Quit: By the next regular paydaySource: PA Department of Labor & Industry, Wage FAQs (opens in a new tab), checked October 6, 2026
Pay frequency
No minimum frequency: wages are paid on regular paydays designated in advance, within the days set by written contract, or else by trade custom, or else within 15 days after the pay period ends.Source: Pennsylvania Wage Payment and Collection Law (Act of July 14, 1961, P.L. 637, No. 329), Section 3, Regular Payday (PDF) (opens in a new tab), read from an archived copy dated September 26, 2026 (opens in a new tab)
Pay notice
At hire: rate of pay and amount of any fringe benefits or wage supplements. Notice ahead of any change to them. A pay stub every pay period.Source: PA L&I, Your Rights under the Pennsylvania Wage Payment & Collection Law (PDF) (opens in a new tab), checked October 5, 2026
New hire reporting
Within 20 days of the date of hire.Source: PA L&I, UCP-36 Employer's Handbook (rev. 06-26, PDF) (opens in a new tab), checked October 5, 2026
E-Verify
Construction-industry employers, including staffing agencies that supply construction workers, must verify every employee hired on or after October 7, 2020 through E-Verify. Public works contractors (Act 127 of 2012): not confirmed.Source: PA L&I, Act 75 E-Verify Construction Employees (opens in a new tab), checked October 5, 2026
Sick leave
No state sick leave law.Source: PA L&I, Wage FAQs: General Wage and Hour Questions (opens in a new tab), checked October 5, 2026

When the employee moves

Re-check the work state and the registrations before the next payroll: a move changes which state's withholding, unemployment, paid leave and employer rules apply.

Registering your business in Pennsylvania, and whether one remote employee creates tax nexus for your company, are separate questions this page does not cover.

More on Pennsylvania

WORKLIO HCM

Payroll for employees who work from home in another state

Worklio HCM withholds by home and work state, reciprocity included, and handles city and county taxes. We help open state withholding and unemployment accounts when you hire somewhere new, and our registration service can register your employer tax accounts for you. Taxes are calculated, deposited and filed in every state and locality, and when an agency notice arrives, you upload it and our tax team resolves it.

Remote employees in other states

Sources

The agency page or document behind each fact, as checked.

General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes and for each state's rules.

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