How do I register as a household employer in Pennsylvania?

Start with a federal EIN, then register with Pennsylvania for each account that applies to you. Apply for a federal EIN at IRS.gov. It is free and takes about 15 minutes. Register with Pennsylvania's unemployment insurance agency once you cross $1,000 in any calendar quarter. Most states want this within 20 days of becoming a covered employer. If you will withhold Pennsylvania income tax at your nanny's request, register separately with the state revenue department for a withholding account. You may also need a local income tax registration, depending on your nanny's work or home municipality. Pennsylvania's EIT (earned income tax) and PSD codes apply in nearly every municipality.

What payroll taxes does Pennsylvania charge for a household employee?

Federal FICA and FUTA, Pennsylvania SUTA, and anything else below that applies to you. Federal FICA: 7.65% employer share, matched by your nanny. Federal FUTA: 6.0% on the first $7,000, an effective 0.6% after the state SUTA credit. Pennsylvania SUTA: 1.419% - 10.3734% on a state-specific wage base, with a separate rate for new employers. State income tax withholding is optional unless your nanny elects it on the state W-4. Local income tax may also apply. Pennsylvania's EIT (earned income tax) and PSD codes apply in nearly every municipality.

What are Pennsylvania's minimum wage and overtime rules for nannies?

At least $7.25 an hour for a nanny in Pennsylvania. Pennsylvania sets no rate above the federal floor, so the federal minimum is what binds. Some cities and counties may set a higher floor, so check your locality before you set a rate. Overtime is 1.5x pay for hours over 40 in a week, under the FLSA. Live-in nannies are exempt from FLSA overtime, but not from minimum wage. Source: US DOL, State Minimum Wage Laws.

Can I require my nanny to use direct deposit in Pennsylvania?

No. Pennsylvania does not let an employer require direct deposit, so your nanny has to opt in. Get a written, signed authorization anyway. Federal Regulation E sets the floor, and Pennsylvania adds an employee-consent rule on top.

What records do I need to keep for a Pennsylvania household employee?

Keep them for at least 4 years after the return reporting the tax was due, or the tax was paid, whichever is later. Timesheets, pay stubs, W-2 copies, payment confirmations and SUTA filings. Pennsylvania follows the federal baseline, so 4 years covers both. Most household-employer audits open with the IRS or a state agency asking for exactly these records, so keep them with your tax filings. Source: IRS Publication 926.

All State Guides

Pennsylvania Nanny Tax Guide

Pennsylvania has a low flat state income tax of 3.07%. Philadelphia and Pittsburgh also have local wage taxes, but a household employer doesn't withhold them the way a business does. Philadelphia's can be withheld only if your nanny agrees, and Pittsburgh's earned income tax isn't withheld at all, so your nanny pays those taxes directly. Pittsburgh's $52 a year Local Services Tax is still withheld from their pay unless they qualify for an exemption and give you the exemption certificate.

Pennsylvania household employer quick facts

Applies in Pennsylvania

State income tax withholding
State unemployment

Not in Pennsylvania

Disability insurance
Paid family leave

Minimum Wage

$7.25/hour (federal)

Compare nationwide →

SUTA Rate Range

1.419% - 10.3734%

New employers: 3.822% on the first $10,000 (2026). Pennsylvania Department of Labor & Industry

Key things to know

Flat state income tax of 3.07%
Philadelphia and Pittsburgh have local wage taxes
Uses federal minimum wage
No state disability or paid family leave program; Pittsburgh requires paid sick leave, and Philadelphia requires sick time that may be unpaid for a household

Pennsylvania Employer Requirements

State Income Tax

Pennsylvania uses a flat 3.07% income tax rate. Unlike most states, PA has no standard deduction or personal exemptions for earned income.

Philadelphia Wage Tax

Philadelphia charges a wage tax on people who live in the city and on people who work there, at a rate the City updates each July. For household employers it works differently. The City of Philadelphia lets you withhold it from your nanny only if they agree to it, and if they don’t, they file and pay it to the City themselves as the Earnings Tax. We don’t withhold it today, so plan on your nanny handling it. Let them know early, so it isn’t a surprise at tax time.

Pittsburgh Wage Tax

Pittsburgh has an earned income tax for people who live or work in the city. A household employer isn’t required to withhold it, so we don’t. Your nanny pays it to the local tax collector where they live, with a return each quarter unless the collector lets them file once a year, plus a final return for the year. Pittsburgh’s $52 a year Local Services Tax is different: it is still withheld from your nanny’s pay unless they qualify for an exemption and give you the exemption certificate.

State Unemployment Insurance

Employers pay SUI tax on the first $10,000 of wages. New employer rate is 3.822%, with rates ranging from 1.419% to 10.3734% based on experience.

Workers' Compensation

Pennsylvania doesn't require workers' compensation for household employers, since domestic workers are excluded unless the employer elects coverage with the Department of Labor and Industry. It's still worth considering: it protects your employee if they're injured at work, and protects you from potential liability.

Pennsylvania household employer questions

What will it cost?

Wondering what you'll actually owe as a Pennsylvania employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.

This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.

Verified accurate as of June 2026Sources: Pennsylvania tax agency, IRS Publication 926

Share this Pennsylvania guide:

NannyKeeper calculates Pennsylvania taxes on every paycheck

We calculate and track all state-specific requirements so you don't have to.

Get Started Free

Pennsylvania Nanny Tax Guide

Pennsylvania household employer quick facts

Pennsylvania Employer Requirements

State Income Tax

Philadelphia Wage Tax

Pittsburgh Wage Tax

State Unemployment Insurance

Workers' Compensation

Pennsylvania household employer questions

What will it cost?

Learn More

Calculate Your PA Nanny Taxes

Run a Pennsylvania household employer audit

Pennsylvania Nanny Contract

2026 Tax Deadline Calendar

Complete Guide to Nanny Taxes

Nanny Cost by State

NannyKeeper calculates Pennsylvania taxes on every paycheck