Pennsylvania vs New Jersey Payroll Comparison
Compare payroll compliance requirements between Pennsylvania and New Jersey. See key differences in wages, taxes, leave policies, and employer obligations.
Compare State Payroll Requirements
Select 2 states to compare their payroll compliance requirements side-by-side.
| Requirement | Pennsylvania | New Jersey |
|---|---|---|
| Minimum Wage | $7.25 (federal) | ⚠️$15.13/hour (2024) |
| Tipped Minimum | $2.83 + tips | $5.26 + tips = $15.13 |
| Overtime Threshold | ⚠️40 hours/week (no daily OT) | 40 hours/week (1.5x) |
| Final Pay (Termination) | Next regular payday | Next regular payday |
| Final Pay (Resignation) | Next regular payday | Next regular payday |
| PTO Payout Required? | ✓No (unless policy requires) | ✓No (unless policy requires) |
| Pay Frequency Mandate | Semi-monthly minimum | At least semi-monthly |
| State Income Tax | ⚠️Yes (3.07% flat rate) | ⚠️Yes (1.4% - 10.75%) |
| Unemployment Insurance | Yes | Yes |
| State Disability Insurance | ✓No | ⚠️Yes (TDI required) |
| Paid Family Leave | ✓No | ⚠️Yes (FLI up to 12 weeks) |
| Paid Sick Leave | ✓No statewide (Philadelphia/Pittsburgh local) | ⚠️Yes (40 hours/year) |
| Workers' Comp Required | ⚠️Yes (all employers) | ⚠️Yes (all employers) |
Key Differences: Pennsylvania vs New Jersey
PAPennsylvania
- Minimum Wage:$7.25 (federal)
- Tipped Minimum:$2.83 + tips
- Overtime Threshold:40 hours/week (no daily OT)
- Final Pay (Termination):Next regular payday
- Final Pay (Resignation):Next regular payday
- PTO Payout Required?:No (unless policy requires)
NJNew Jersey
- Minimum Wage:$15.13/hour (2024)
- Tipped Minimum:$5.26 + tips = $15.13
- Overtime Threshold:40 hours/week (1.5x)
- Final Pay (Termination):Next regular payday
- Final Pay (Resignation):Next regular payday
- PTO Payout Required?:No (unless policy requires)
Understanding Pennsylvania and New Jersey Payroll Differences
State Income Tax: Pennsylvania has state income tax (Yes (3.07% flat rate)), while New Jersey has state income tax (Yes (1.4% - 10.75%)). This significantly impacts both employer withholding responsibilities and employee take-home pay.
Minimum Wage: Pennsylvania minimum wage is $7.25 (federal), compared to New Jersey at $15.13/hour (2024). Employers must pay at least the higher of federal, state, or local minimum wage requirements.
Paid Sick Leave: Pennsylvania: No statewide (Philadelphia/Pittsburgh local). New Jersey: Yes (40 hours/year). States with mandatory paid sick leave require employers to track accruals and provide specific leave entitlements.
For complete compliance requirements, review the full state guides for Pennsylvania and New Jersey.