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Small Business Payroll in Philadelphia
Ensure Compliance and Simplify Payroll Management for Your Philadelphia Based Businesses with Exact Payroll
Expert Payroll Services for Philadelphia Employers
Our Philadelphia business payroll services are designed to help you eliminate time-consuming data entry, ensure long-term compliance, process payroll efficiently, and offer intuitive and transparent self-service tools to your employees. We offer all of the following services:
Comprehensive Payroll Processing
Our Philadelphia payroll services include local, state, and federal tax service, new hire reporting, general ledger reporting, and synchronization of payroll entries with your preferred accounting software (QuickBooks or otherwise).
Tax Filing and Compliance Support
To support payroll compliance in Philadelphia, we provide automated withholding across employee classifications, hours, overtime, and a host of other factors. For ongoing compliance, our local law alerts provide real-time updates regarding regulatory changes and our HR Support Center offers extensive resources to support hiring, training, and workforce management.
Direct Deposit and Employee Self-Service
Employees and job seekers often prefer direct deposit each pay cycle. We can quickly set up direct deposit to ensure timely, consistent, and accurate payments. Our platform also provides a self-service portal for employees to manage personal information, benefits enrollment, time tracking, approvals, and more, increasing access and transparency.
Time and Attendance Tracking
Payroll and time tracking are interconnected HR processes, especially for small businesses with a range of employee types, including part-time, remote, or hourly. Our time and attendance tracking solution integrates seamlessly with payroll, eliminating the need for redundant data entry or paper forms.
Mandated Sick Leave Law
Employers located in Philadelphia with ten (10) or more at any time are required to provide Paid Sick Leave. Exact Payroll helps your business stay in compliance with this law. Why risk being out of compliance? Contact Exact Payroll with questions on how to stay in compliance.
Benefits Administration & Workers’ Compensation
We offer pay-as-you-owe premium services and other benefits and workers’ compensation services to keep your workforce protected and supported.
Local Expertise
Understanding Philadelphia’s Payroll Regulations
One of the main challenges employers face is ongoing compliance with local and state payroll regulations, including Philadelphia Wage Tax, local services tax (LST), unemployment insurance, and workers’ compensation. As regulations continue to fluctuate – including potential changes to Pennsylvania state minimum wage – it’s critical to have the support of payroll and compliance experts who can help your business stay compliant with all city and state requirements.
Philadelphia Wage Tax
Any Pennsylvania employer that employs a resident of Philadelphia or a non-resident of Philadelphia who completes work for their Philadelphia-based business must withhold the Philadelphia Wage Tax from any employee who meets these criteria. In some, employees only work part of their job in Philadelphia. Exact can help navigate and tack those employees and apply the proper taxes to help avoid over taxation.
To ensure Philadelphia payroll compliance, the Wage Tax must be filed on a quarterly basis and paid based on the required filing frequency, which varies by business. As of the writing of this article, the Wage Tax rate is 3.75% for Philadelphia residents and 3.44% for non-residents who work for a business in Philadelphia.
Local Services Tax (LST)
Local Earned Income Taxes (EIT) must be withheld by Philadelphia employers. In some cases these taxes are based on the Pennsylvania political subdivision code (PSD) or municipality where an employee resides. It can be a challenge to navigate Residency Certification Forms, low-income exemptions, and other LST-related exclusions without professional support. Exact Payroll helps you automate all local employee tax withholding so you can remit taxes accurately and on time.
Unemployment Insurance
In addition to federal unemployment taxes, most Philadelphia employers must contribute taxes to the Pennsylvania state Unemployment Compensation (UC) fund. Employer contributions are drawn from the first $10,000 that each employee earns annually.
There are distinct tax rates for new vs. existing employers, and the rates are also affected by your business’ industry (construction vs. non-construction).
Additionally, employers must be aware that a business’ tax rate is re-computed each year, requiring close monitoring and payroll adaptation if the rate changes from the previous year.
Workers’ Compensation
Workers’ compensation coverage is designed to support Pennsylvania employees who are injured at work or experience a work-related illness. For nearly all Philadelphia employers with one or more employees, workers’ compensation insurance is mandatory. Exact Payroll can assist your business with locating the best licensed insurance carrier and plan for your business’ unique needs.
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