How to Hire Employees in an LLC in Pennsylvania (2025 Guide)

When you start an LLC (Limited Liability Company), it is inevitable that you will hire employees sooner or later. For every other business structure, hiring employees requires a handful of rules to follow. Before you start hiring employees in an LLC in Pennsylvania, you must understand a few things.

LLCBuddy editors shared their tips on how to hire employees in your LLC. On this page, you will find what the requirements are to hire people in your LLC as a single-member or multi-member LLC. Let’s dig deeper into the ins and outs of hiring employees in Pennsylvania LLC.

Hiring Employees in Pennsylvania

In order to hire employees in a Pennsylvania LLC, there are many requirements that a business has to fulfill. First of all, there are a few steps you have to follow in order to get employees on board. Besides these steps, there are a few more important things you must know about hiring employees in your LLC.

Step 1: Publish a Job Description

The first step to hiring employees in your LLC in Pennsylvania is to publish a job description. The JD must be detailed, clean, and easily understandable by the applicants. A few important points should be there on the JD, such as the job profile, eligibility (who can apply), the remuneration, job type (full-time/part-time/contractual), and other offerings of your company. All of these should be clearly mentioned in the Job Description.

Step 2: Comply with the Legal Side of Hiring in Pennsylvania

When you hire employees in your LLC in Pennsylvania, it is mandatory to be compliant with the laws of hiring people in your state. The following points should be included in the hiring process and later on,

• No discrimination based on colour, religion, race, or any such factors
• Make sure to comply with IRS guidelines
• Do not mention any false statements on the job description or fake promises that are not part of your LLC or business
• Comply with regulations like minimum wages, hiring immigrants, etc.

Once the legal compliance is met, there are a few tasks to be done before and after hiring employees in your Pennsylvania LLC.

Some Other Points to Consider:

There are some employment rules and regulations (Federal and State) to follow or comply with before and after you hire people in your LLC.

Federal & State Employment posters in Pennsylvania

The employers in Pennsylvania are required to show both Federal & State Employment posters mentioned in the Equal Employment Opportunities Act, Americans with Disabilities Act, Fair Labor Standards Act (FLSA), etc. You should seek professional help to fulfill all the norms or requirements.

Federal & State Required Forms

Hiring employees is a lengthier process that involves the filing of different forms & applications. Suppose you wish to hire employees in Pennsylvania. In that case, you must ask your employees to submit the Employment Eligibility Form, the Federal Tax withholding form, the W-4 Form, the Workers Compensation Claim Form, Disability Self-Identification Form, the U.S. Citizenship and Immigration Services Form, etc. These Legal forms are easy and free to download.

Requirements of the Pennsylvania New Hire Reporting program

Employers of Business owners are bound by Pennsylvania’s New Hire Reporting Program, under which they have to submit a report consisting:

• Company Name
• Company Address
• Company federal tax ID number
• Employee’s Name
• Employee’s Social Security Number
• Employee’s Address
• First Day of Paid Work

In addition to the forms mentioned above, payments, taxes, tax forms, & requirements, there may be some additional compliance for hiring in Pennsylvania; you must adhere to those norms as well.

Can an LLC Hire Employees?

An LLC or a Limited Liability Company can be regarded as a corporation, partnership, or sole proprietorship. The owners of the LLC are often referred to as members. Individuals, Corporations &, in some cases, other LLCs can form an LLC as members.

The members form LLCs because of their limited or no liability provided to the owners or members. In the event of liabilities arising out of an employee’s action, the members of the LLC are not personally liable- the LLC is liable for the actionable claim.

Any LLC (even one with a single owner) can hire unlimited employees on wages or salary. (The single-member owner LLC may have different rules and regulations). In addition to the salaried employees, the LLC can appoint Independent contractors for certain tasks on a contract basis.

Rules to Hire Employees in an LLC in Pennsylvania?

Just like any other business corporation, an LLC is also not immune to certain procedures & rules of hiring. An LLC files many documents & pays a number of taxes to various Government Agencies while hiring employees. Some of the essential rules or steps to hire employees in an LLC are:

• Federal Employer Identification Number – Every LLC must obtain an Employer Identification Number (EIN) from the Internal Revenue Service. EIN helps report taxes & a few other documents to the IRS.
• Employee Eligibility Form – It is mandatory for an LLC owner to check if the employee is eligible for employment in the U.S. An LLC has to ask the employees to submit the I-9, Employment Eligibility Verification Form, to verify the identity of the employee & to authorize the employment. The I-9 form is a mandatory requirement while hiring an employee.
• Employee’s Social Security Number – The employee has to have a valid Social Security Number (SSN) to work. LLCs have to ask the new employees to submit their SSNs before employment. The SSN is helpful for payment & tax purposes.
• Setting up a process for collection & payment of the appropriate taxes – There has to be a due process for the employees’ future collection & payment of taxes. This process needs to be set up by the employer (in this case, the LLC)
• Employee handbook – In the hiring process, one of the crucial elements of hiring paperwork is an Employee Handbook. Although it is not essential in Pennsylvania, it is usually needed as one of the legal documents in many other states. An Employee Handbook consists of a complete list of all the basic rules & policies of the company.
• Pennsylvania Payroll Taxes – An LLC that is running a business with employees or businesses with employees has to pay many federal taxes & state Taxes. Following the rules on payroll taxes is also an essential requirement. After hiring employees, an LLC is subject to the State Unemployment Compensation Act. Under the said Act, an LLC will have to pay Unemployment tax to the state & to do that, the LLC must register itself with the Pennsylvania Workforce Commission. The process involves simple steps & can be completed in 20 minutes.
  Payroll taxes also include Federal Income Tax withholding; an employer can withhold money from the employee’s account for the income tax.
• Workers’ Compensation Insurance: An LLC operating in the state of Pennsylvania has to carry workers’ compensation insurance & has to display relevant posters.
• New Hire Report or Report of the New Employee – An LLC has to
  • Report about hiring the new employees in the form of “Report of New Employee(s)” to the Pennsylvania Workforce Commission within 20 days from the date of hire.
  • Deposit and report federal employment taxes as per the IRS procedures for payroll reporting & payment.

Laws Relating To Wages Of Employees

The State of Pennsylvania adheres to federal legislation that protects employees from discrimination and assures the payment of minimum wage, overtime pay, and the right to family leave, among other things. The Fair Labor Standards Act governs the rules pertaining to employee rights. The State does not have any particular labor legislation of its own.

• The present Pennsylvania minimum pay is $7.25 per hour. If the federal wage changes, so will Pennsylvania’s wage rate.
• Discrimination and retaliation against employees in a range of protected categories are considered illegal in Pennsylvania.
• Apart from normal compensation, the Fair Labor Standards Act requires companies to compensate employees for any overtime labour performed when the total number of working hours surpasses 40 per week.
• There are laws in Pennsylvania that govern the minimum wage, overtime, and child labour.
• The business LLCs shall adhere to every federal legislation and state-enforced labour laws while operating their businesses in the State.

Structure Of Wages Of Employees

The State of Pennsylvania is guided by federal laws with respect to employer-employee conduct at a workplace and related labor laws. Below, we have mentioned the key provisions that structure the employee wages in the State.

Pennsylvania Minimum Wage

Pennsylvania’s minimum wage is $7.25 per hour, which is the same as the federal minimum wage. With any hike in the federal minimum wage, the Pennsylvania minimum wage shall rise automatically. There are certain exceptions to the standard minimum wage rate rule.

• Tipped Minimum Wage: For tipped employees, the current minimum pay is $2.83 per hour. If a company pays its tipped employees the lower minimum wage, it must also make sure that the gratuities they receive cover the difference between the lower and regular minimum wage. The final wage of such employees, after adding tips to their regular wages, should add up to at least $7.25 per hour.
• Student Learners: Employers who acquire a special certificate of permission from Pennsylvania’s Department of Labor and Industry can pay learners a subminimum wage rate that is less than the regular minimum wage.

Pennsylvania Overtime Wage Rate

For any hours worked beyond the 40-hour limit in a workweek, Pennsylvania law requires an employer to pay the eligible employees overtime at 1.5 times their standard wage rate. Overtime pay must be settled on a weekly basis, regardless of whether the employee is paid hourly pay, a monthly income, a piece rate, etc.

Youth Labor

Minors below 18 years are not permitted to engage in dangerous activities such as piloting, firefighting, manufacturing dyes, and chemicals. They are likewise restricted from working in establishments that manufacture, sell, or distribute alcoholic drinks. Minors under the age of 16 are barred from working in a range of other vocations, including scaffolding or tunnel work, as well as youth peddling and promotion.

Pennsylvania Employee Rights

Federal and state laws protect employee rights during the term of their employment in the State of Pennsylvania. The State offers certain rights to employees in Pennsylvania to safeguard their interests and well-being while working for their employers.

Anti-discriminatory Rights

The Pennsylvania Human Relations Act (PHRA) strictly prohibits any form of discrimination at the workplace based on factors such as race, color, creed, caste, religion, nationality, handicap, and so on, for employers with four or more workers.

Equal Pay

The Equivalent Compensation Law in Pennsylvania bans employers from discriminating in pay for comparable labor on occupations that demand equal ability, effort, and responsibility and are conducted under similar working circumstances based on gender. A seniority system, a merit system, a system that assesses wages by quantity or quality of work, or a difference based on criteria other than sex may all allow for differing pay rates.

Leave of Absence

Employers in Pennsylvania must comply with the Federal Family and Medical Leave Act (FMLA). Employees who meet the qualifying criteria can take up to 12 weeks of unpaid time off each year for looking after a family member or other medical and family reasons.

Workplace Safety

Employers in all states, including Pennsylvania, are required to provide a safe and secure workplace free of any known hazards, according to the Occupational Safety and Health Act. Working conditions must be healthful and safe, and industry-specific safety equipment must be readily available at the workplace. Employers are required to give safety training to anyone starting a job in a profession or industry that requires it.

Whistleblower Protection

The Pennsylvania Whistleblower Law protects any employee against workplace reprisal if they report or disclose unlawful acts or misconduct by the employer or any abuse at work, to a governmental agency or a law enforcement body. Employers cannot harass or retaliate against such employees at the workplace in any manner.

Final Pay

Whether the termination is voluntary or involuntary, Pennsylvania law requires that final earnings be paid by the following normal paycheck. The compensation for paid leave is determined by the particular business policy.

FAQs

How to Hire Employees Fast in Your Pennsylvania LLC

To hire employees for your Pennsylvania LLC, you need to verify if the person is eligible to work in the US and then report him/her as ‘new hires’ to the state.

So how can you hire employees fast for your Pennsylvania LLC? Here are some tips to help streamline the hiring process:

First and foremost, it’s important to have a clear job description and requirements for the position you’re looking to fill. This will not only attract more qualified candidates but also help you quickly sift through resumes and applications to find the best fit for your team.

Utilizing job boards and online job posting sites can help you reach a wider pool of job seekers in a shorter amount of time. Platforms like Indeed, Glassdoor, and LinkedIn can help you quickly advertise your job opening and reach a diverse range of candidates.

Consider using recruitment agencies or staffing firms to help you find top talent quickly. These professionals have existing networks of qualified candidates and can help you streamline the hiring process by vetting potential hires for you.

Utilize social media and your network to spread the word about your job opening. Posting on platforms like Facebook, Twitter, and Instagram can help you reach a larger audience of potential candidates who may not be actively searching for jobs but would be a great fit for your team.

When reviewing resumes and conducting interviews, be efficient with your time. Look for key indicators of qualifications and experience that align with your job requirements, and ask pointed questions during interviews to quickly assess a candidate’s fit for your team.

Consider conducting group interviews or assessment days to efficiently evaluate multiple candidates at once. This can help you save time and resources while still thoroughly evaluating each candidate’s qualifications and fit for your team.

Additionally, be honest and transparent with candidates about your timeline for hiring. Clearly communicate expectations and next steps in the process to ensure a smoother and more efficient hiring experience for both parties.

Lastly, don’t underestimate the power of employee referrals. Your current team members may know of qualified candidates who would be a great fit for your team and can help expedite the hiring process by referring them to you.

By following these tips and utilizing various resources and strategies, you can streamline the hiring process for your Pennsylvania LLC and quickly find the right employees to help your business thrive.

In Conclusion

Hiring people in an LLC is not a huge task, however, there are laws, regulations, and other factors to consider. While expanding your company, on one hand, you need to hire employees, on the other hand, you must comply with the laws in the state. In Rhode Island, if you start an LLC, you might need to hire more people. Make sure to check with SOS and, moreover, the local government body to ensure meeting legal criteria.

All the LLCs with employees are bound by many rules and regulations with reference to wages. It is always advisable to use a registered agent service to understand the laws better. Feel free to share your feedback with us in the comment section below.