Pennsylvania Form PA-40 W-2S – Wage Statement Summary (2026)
Last reviewed: 2025-11-09
Use the Pennsylvania Tax Form Calculator Pennsylvania Form PA-40 W-2S – Wage Statement Summary as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 Pennsylvania state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.
Form W-25 is the Pennsylvania Employer Withholding Return, used by employers to report and remit state income tax withheld from employee wages. Every business or entity that pays taxable compensation to Pennsylvania residents—or to nonresidents earning income in the state—must file this return. The form ensures that Pennsylvania’s 3.07 % personal income tax is properly withheld, reported, and transferred to the Department of Revenue. Failure to file or remit timely can result in penalties and interest.
Employers generally submit Form W-25 quarterly, along with payments for tax withheld during the quarter, unless they qualify for a monthly or semiweekly deposit schedule. Large employers may be required to remit electronically through the myPATH system.
Understanding Form W-25 Filing Requirements
Use Form W-25 to summarize the total Pennsylvania income tax withheld during the reporting period. The form reconciles amounts withheld from Form W-2 wage statements and any prior deposits made. Employers must also provide accurate details for each period, including total gross wages paid, total withholding, and payment information.
- Who files: Any employer withholding Pennsylvania personal income tax from wages, bonuses, or other taxable compensation.
- When to file: Typically the last day of April, July, October, and January following each quarter.
- Where to file: Electronically via the Pennsylvania myPATH portal or by paper if permitted.
- What to include: Quarterly totals of compensation paid and tax withheld, any adjustments, and payments remitted.
Employers must also reconcile totals annually using Form REV-1667 (Annual Withholding Reconciliation Statement) when submitting W-2s to the Department of Revenue.
| SECTION I — TAXPAYER INFORMATION | ||
| 1 | Employer Name | |
| 2 | Employer Identification Number (EIN) | |
| 3 | Pennsylvania Compensation (from Box 16 of W-2) | |
| 4 | Pennsylvania Tax Withheld (from Box 17 of W-2) | |
| 5 | Employer’s PA Withholding Account Number | |
| 6 | Tax Year Wages from Other States (if applicable) | |
| 7 | Net PA Taxable Compensation (Line 3 − deductions if any) | |
| SECTION II — EMPLOYEE EXPENSES AND ADJUSTMENTS | ||
| 8 | Unreimbursed Employee Business Expenses (Schedule UE) | |
| 9 | Net Compensation after Expenses (Line 3 − Line 8) | |
| SECTION III — TOTALS FOR ALL W-2S STATEMENTS | ||
| 10 | Total Compensation (sum all Line 3) | |
| 11 | Total Pennsylvania Tax Withheld (sum all Line 4) | |
| 12 | Total Net Compensation after Expenses (sum all Line 9) | |
| 13 | Tax on Compensation (Line 12 × 3.07%) | |
| 14 | Net Tax Due or Overpaid (Line 13 − Line 11) | |
Example Scenarios
Example 1 – Quarterly Filer: Keystone Manufacturing withholds $14 000 of Pennsylvania income tax from January through March. On Form W-25, Line 1 reports total compensation paid ($456 000), Line 2 reports tax withheld ($14 000), and Line 3 confirms payment of the same amount. The company files by April 30 and keeps payroll and deposit records on file for at least four years.
Example 2 – Monthly Depositor: A large retailer with $500 000 in monthly payroll must remit within three business days of each payday. These payments are summarized quarterly on Form W-25 and matched against prior deposits to verify accuracy.
Example 3 – Nonresident Employees: Employers with staff living outside Pennsylvania but performing work within the state must still withhold PA tax. Reciprocal agreements with neighboring states (NJ, OH, MD, VA, WV, IN) may exempt certain workers if a valid REV-419 Exemption Certificate is on file.
Best Practices
- Always match quarterly Form W-25 totals to annual W-2 submissions and Form REV-1667.
- Use payroll software or the myPATH system to automate due-date reminders and deposits.
- Retain evidence of electronic payments, filing confirmations, and employee exemption certificates.
- Submit corrections promptly using an amended W-25 if prior figures were inaccurate.
Last reviewed: 2025-11-09: If you believe this form requires an update, please contact us.
Further Guidance and Resources
- myPATH – Pennsylvania Employer Tax Portal
- Employer Withholding Forms & Instructions
- REV-419 – Employee’s Nonwithholding Certificate
Form W-25 plays a critical role in Pennsylvania’s payroll compliance system. Accurate quarterly reporting helps prevent discrepancies during year-end reconciliation and ensures that employees receive correct credit for state income tax withheld on their Form PA-40. Employers who maintain compliance with filing and remittance requirements strengthen trust with their workforce and avoid unnecessary penalties.
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Frequently Asked Questions
What is Form PA-40?
Form PA-40 is the Pennsylvania Individual Income Tax Return used by residents, part-year residents, and nonresidents to report taxable income and claim credits or deductions.
Can I amend to claim a refund?
Yes, if withholding or estimated payments exceeded revised liability.
Does PA tax long-term capital gains?
Yes—PA taxes “net gains from the sale, exchange, or disposition of property.” This wage page doesn’t include capital gains; model them with Schedule D.
What rate does Pennsylvania use?
Pennsylvania has a flat personal income tax rate of 3.07 % for all taxable income.
Where do I enter the exclusion amount?
You do not enter it separately; if fully excluded, you simply omit the gain from your PA-40. Partial exclusions must be shown on Schedule 19.
Important Notes
All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.