Guide to Setting up Payroll for Your Child Care Business in Pennsylvania

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Guide to Setting up Payroll for Your Child Care Business in Pennsylvania

6 min read

Last updated

Jul 29, 2024

Beny Mizrachi

6 min read

Last updated

Jul 29, 2024

Setting up payroll for your child care business in Pennsylvania can seem like a daunting task, but it is essential for ensuring compliance with state regulations and maintaining smooth operations. This guide will walk you through the necessary steps, from obtaining the required tax account numbers to understanding your unemployment compensation tax rate. By following this comprehensive guide, you'll be well-equipped to handle payroll efficiently and correctly, allowing you to focus more on providing excellent care and education to the children in your facility.

Who has to pay payroll taxes in Pennsylvania?

All companies providing full and/or part-time employment to one or more workers need to register with the Pennsylvania Department of Labor & Industry, Office of UC Tax Services. A company may be a sole proprietorship, partnership, corporation, limited liability company, business trust, association, etc.

To get set up with payroll in Pennsylvania, you must provide the following:

Pennsylvania Withholding Tax Account Number
Pennsylvania Unemployment Compensation (UC) Account Number
Pennsylvania Unemployment Compensation (UC) Tax Rate
City-Level Tax Account Number (Only applies to businesses in Pittsburgh, Philadelphia, Berkheimer, and York Adams)

PA Withholding Tax Account Number

Your PA Withholding Tax Account Number is an eight-digit number formatted as:

. You can find your withholding tax account number either online or on correspondence from the PA Department of Revenue

XXXX-XXXX

How to find your PA Withholding Tax Account Number

There are three ways to find your withholding tax account number:

Online on the PA Department of Revenue Website
On Correspondence from the PA Department of Revenue
Calling the agency at 1-888-728-2937 (1-888-PATAXES)

Don’t have a PA Withholding Tax Account Number?

There are two ways to acquire a PA withholding tax account number:

Registering online with the PA Department of Revenue
Calling the agency at 1-888-728-2937 (1-888-PATAXES)

Pennsylvania Unemployment Compensation (UC) Account Number

Your UC Account number is a seven-digit number formatted as:

XXXXXXX

Employers that are determined to be liable under the PA UC law will receive a UC Account Number. This number makes recording both unemployment contributions and benefit payment charges easier, in addition to acting as a means to identify the employer in correspondence.

How to find your UC Account Number

You can find your UC Account Number one of three ways:

Online with the PA Department of Labor
On your Unemployment Contribution Rate Notice (Form UC-657) mailed to you at the end of each calendar year
Contacting the PA Department of Labor and Industry at either 866-403-6163 or via their Contact Us form

Don’t have a UC Account Number?

You can acquire a UC Account Number and tax rate by registering online with the PA Department of Labor and Industry.

Pennsylvania Unemployment Compensation (UC) Tax Rate

Your Unemployment Compensation (UC) Tax Rate is determined annually by the Pennsylvania Department of Labor and Industry. This rate ranges anywhere from 3.5% (for new, non-construction employers) to 10.65%. This is based on a variety of factors, including:

Employer's Experience Rating: This is a measure of the employer's history with unemployment claims. Employers with fewer claims generally receive a lower tax rate.
Industry Classification: Different industries may have different base rates depending on the overall risk of unemployment within that sector.
Statewide Economic Conditions: The overall economic health of Pennsylvania can also influence UC tax rates, as the state adjusts rates to maintain the solvency of the UC Fund.

Specific rates are communicated through the Unemployment Contribution Rate Notice (Form UC-657), which is mailed to employers at the end of each calendar year.

How to find your UC Tax Rate

Employers can also view their tax rates online by logging into their account on the Pennsylvania Department of Labor and Industry's website, or on their Contribution Rate Notice (Form UC-657).

Don’t have a UC Tax Rate?

You can acquire a UC Tax Rate by registering online with the PA Department of Labor and Industry.

City-Level Tax Account Numbers

For child care businesses in Pittsburgh, Philadelphia, Berkheimer, and York Adams, you will also need to know your city-level tax account number. Please see the details below on how to locate or receive your city-level tax account number.

Pittsburgh City ID

Your Pittsburgh City ID is a nine- or fourteen-digit number formatted as:

XXXXXXXXX
XXXXXXXXXXXXXX

This is a permanent ID that gets assigned to each employer and differs from your account number that Pittsburgh issues quarterly. You can find your Pittsburgh City ID on any correspondence you’ve received from the City of Pittsburgh Finance Department.

Don’t Have a Pittsburgh City ID?

You can acquire a Pittsburgh City ID by either registering online with the City of Pittsburgh Finance Department or by contacting them at 412-225-2543. You should receive an ID number within 5-10 business days.

Philadelphia Tax Account Number

Your Philadelphia Tax Account Number is a ten-digit number formatted as:

XXXXXXXXXX

This number is used to pay city taxes. You can find your tax account number on any previous correspondence from the Philadelphia Department of Revenue. You can also contact them by:

calling 215-686-6589
emailing revenue@phila.org

Don’t have a Philadelphia Tax Account Number?

You can acquire a Philadelphia tax account number by registering online with the Philadelphia Department of Revenue or by contacting them via phone or email.

Berkheimer LST Tax Account Number

Your Berkheimer LST tax account number is a seven-digit number formatted as:

XXXXXXX

Don’t have a Berkheimer LST Tax Account Number?

You can get a Berkheimer LST tax account number by registering online with Berkheimer Tax Innovations or you can apply via email or fax by completing the employer registration form and sending it over email:

email: eLST@goberk.com
you can also call them at 610-588-5765

York Adams Tax Account Number

Your York Adams tax account number is a six-digit number formatted as:

XXXXXXXX

Don’t have a York Adams Tax Account Number?

You can get a York Adams tax account number by registering with the York Adams Tax Bureau by filling out the Employer Registration Form and sending it to:

employer@yatb.com

They will then set up your account and send you your tax account number.

Using a Tax or Payroll Service?

Accountants, payroll, and tax services like Playground Payroll are considered Third Party Administrators (TPAs) by the state of Pennsylvania. Relationships between clients and TPAs must be documented electronically in the UC Management System (UCMS). Most of the time, TPAs are already registered within the UCMS and have a ten-digit identifier.

Employers (such as child care businesses) need to register their Power of Attorney (PoA) relationship electronically in the UCMS by assigning the TPA to their account. TPAs must then accept the association, as a sort of digital handshake.