Due Date
The last day of the second month after quarter end for the prior quarters’ activity.
Tax Rate
5½ Mills (.0055) or .55%
Who Pays the Tax?
All persons who engage, hire, employ, or contract with one or more individuals, as employees, to perform work or render services within the City of Pittsburgh. The Payroll Tax is computed on the employer’s total payroll expense (total compensation) associated with business activity in the City. Partners are considered employees of the employer for purposes of the Payroll Tax. You do not need to be located in the City of Pittsburgh to be subject to this tax.
Do Self-Employed Persons and Partners Have to Pay the Tax?
Yes, self-employed persons and partners in a partnership, if the partnership otherwise does not remit the tax, must file the tax return and remit the tax on their own earnings. In calculating the earnings of self-employed persons or partners, such earnings are the sum of guaranteed payments and the lesser of net profits or net draws or distributions from the business. Passive income received by a self-employed person or a partner is not subject to tax because it is not considered “earned” income.
Important Dates
Employers must file quarterly reports with the City Treasurer on or before the last day of the second month after the quarter, reporting the preceding quarter’s activity on the Payroll Expense Tax Form. Thus, 1st Quarter taxes and reports are due May 31st, 2nd Quarter; taxes and reports are due August 31st, 3rd Quarter taxes and reports are due November 30th, and 4th Quarter taxes and reports are due February 28th of the following year.
Tax Rates, Penalties, and Fees
How much is it?
The Payroll Tax is fifty-five hundredths of a percent (.55% or .0055) of payroll expense generated as a result of an employer conducting business within the City of Pittsburgh, collected quarterly.
What is taxed?
Payroll expense, which is the total compensation paid, including salaries, wages, net distributions, commissions, bonuses, stock options and other compensation to all individuals who during any tax year, perform work or render services in whole or in part in the City of Pittsburgh.
For more information, see:
What if my employees don’t just work in the City of Pittsburgh?
For employers whose employees perform work or render services partly within and partly outside of the City of Pittsburgh, the method of computing their payroll expense attributable to the City of Pittsburgh is to use the percentage of total number of working hours employed within the City of Pittsburgh compared to the total number of hours employed (within and outside) the City for each individual employee. Detailed examples are provided in the Regulations.
What happens if you don’t pay on time?
If an employer does not pay on time, interest and penalties will be added to the amount it owes.
In order for a mailed report and return to be considered timely, it must be postmarked by the United States Post Office by the due date. The City Treasurer will allow for a two-day grace period for those reports and returns privately postmarked.
In order for an electronically submitted report and return to be considered timely, it must be submitted by 11:59PM Eastern Time on the due date.
Discounts and Special Rules
Are you eligible for a discount?
No discounts are available for the Payroll Tax.
Do special rules apply to non-profit charities?
Yes. A charitable organization, shall calculate the tax that would otherwise be attributable to the City of Pittsburgh and file a return, but shall only pay the tax on that portion of its payroll expense attributable to business activity for which a tax may be imposed pursuant to unrelated business income tax (“UBIT”) under Section 511 of the Internal Revenue Code. Please review your IRS Form 990-T to determine which part of your activities are subject to the UBIT. If the charity has purchased or is operating branches, affiliates, subsidiaries or other business entities that do not independently meet the standards of the “Institutions of Purely Public Charity Act”, the tax shall be paid on the payroll attributable to such for-profit branches, affiliates or subsidiaries, whether or not the employees are leased or placed under the auspices of the charity’s umbrella or parent organization.
How to Pay
By mail:
- Make check payable to: “Treasurer, City of Pittsburgh.” Do not send cash.
- Mail to: Payroll Expense Tax, 414 Grant St., Pittsburgh, PA 15219-2476
- A $30.00 fee will be assessed for any check returned from the bank for any reason.
In Person:
- Visit the first floor payment windows of the City Treasurer’s Office in the City-County Building at 414 Grant St, Pittsburgh PA.
- A check or cash are acceptable for in-person payments.
Tax Code
The relevant ordinance is Section 258 of the Pittsburgh Municipal Code.
Forms and Instructions
The Payroll Tax Form, as well as instructions that apply to this and other tax types.
Related Content
Every employer not registered with the City of Pittsburgh shall, within 15 days after first becoming an employer, register with the City the employer’s name, address and such other information as the City may require.
The Payroll Tax Regulations can be found online.
Pittsburgh Code Reference: Ch. 258
For new business registration call 412-255-2525.