Pennsylvania Tax

For Pennsylvania residents, you do not need to provide any status or withholding information.

Deltek Modification Date - 6/26/12

You do not need to enter status or withholding information for residents of Pennsylvania on the Withholding grid on the Payroll tab of the Employees hub:

Field	Description
Status	The Commonwealth of Pennsylvania’s tax calculations do not use this field for calculating state taxes.
Exemptions	The Commonwealth of Pennsylvania’s tax calculations do not use this field for calculating state taxes.
Other Exemptions	The Commonwealth of Pennsylvania’s tax calculations do not use this field for calculating state taxes.

To calculate an employee's Pennsylvania State tax, DPS does the following:

1. Multiplies the employee's gross pay per pay period by the number of pay periods in a year to determine annualized gross wages.
2. Subtracts any contributions to 125/Cafeteria plans from gross wages to yield taxable income.
3. Applies Tax Calculation Method 2 to the gross wages using a fixed percentage of 3.07% to determine the net income tax.
4. Divides the annual income tax by the number of pay periods in a year to determine the amount to be withheld for the pay period.