It depends on the role and responsibilities of the employee. Hourly pay is common for non-exempt employees who are eligible for overtime, while salaried pay is typically used for exempt employees with consistent work hours and responsibilities. We’ll help you determine what’s best for your business and legally compliant under federal and Pennsylvania labor laws.   Basically, if they are hourly and they work it they get paid.  If they are salary they are entitled, usually, to their pay regardless of staying late or leaving early.

In Pennsylvania, non-exempt employees must be paid 1.5 times their regular rate for all hours worked beyond 40 in a workweek. This is consistent with the federal Fair Labor Standards Act (FLSA). Certain roles may be exempt, and The Payroll Shoppe can help you identify which positions qualify.

Choosing between a sole proprietorship and an LLC depends on your goals for liability protection, tax structure, and scalability. LLCs provide legal protection and may offer more payroll flexibility. Our payroll experts can guide you through the pros and cons specific to your setup.

Businesses with 50 or more full-time equivalent employees are legally required to offer health insurance under the Affordable Care Act. If you have fewer employees, it’s optional, but offering coverage (or alternatives like ICHRA) can help with retention and tax benefits.

Yes, with an Individual Coverage Health Reimbursement Arrangement (ICHRA), small employers can reimburse employees tax-free for individual health insurance premiums and qualified medical expenses. This must be set up correctly to comply with IRS rules. We can help!

You’ll need to comply with court-issued income withholding orders for child support. As the employer, you are responsible for deducting the specified amount from the employee’s paycheck and remitting it to the appropriate agency. The Payroll Shoppe ensures all deductions are accurate and timely.

In Pennsylvania, you’ll typically need to register with:

• PA Department of Revenue (for state income tax withholding)
• PA Department of Labor & Industry (for unemployment compensation)

• Local tax authorities, depending on where your business and employees are located-that is commonly known as the lived in / worked in tax and local service tax (LST)
  We help you get all the right accounts set up from the start.

Yes, if the employee qualifies, your business may see an impact on your unemployment insurance tax rate. While you don’t pay benefits directly, the monies paid come out of the SUI tax collected each pay.  However, your state unemployment rate (SUI) may increase based on claims.

Your SUI rate is based on claims history. If former employees filed for unemployment or your company has frequent turnover, your rate may rise. We help you understand and respond to rate changes.

In Pennsylvania, local earned income tax is based on where an employee lives and works. The higher rate between the two is generally withheld. This can be confusing, especially for remote or hybrid teams—but our system ensures accurate local tax withholding and compliance.