Payroll Services in Philadelphia, PA
LMF3 Payroll Services is a payroll and HR firm in Audubon, PA serving Philadelphia businesses. Our office sits in Montgomery County, minutes from Norristown, and we handle Philadelphia Wage Tax withholding as part of our payroll service. If you run payroll in the city, you deal with rules that suburban employers never see. We handle those rules so you can focus on the work.
Payroll for Philadelphia Employers
Philadelphia is a consolidated city and county, and its payroll rules reflect that. The city levies its own Wage Tax on top of what the state requires. If you pay anyone who lives or works in the city, that tax lands on your payroll.
LMF3 runs the whole cycle for Philadelphia employers. We process paychecks, withhold the right taxes, and file the returns. Our filing accuracy is 100%.
Lou Frangiosa, our CEO, has spent more than 15 years managing payroll, HR, and benefits. Payroll, HR, benefits, and insurance sit under one provider, so you make one call when something comes up.
The Philadelphia Wage Tax
The Wage Tax is the biggest payroll difference between Philadelphia and the suburban counties. Employers must withhold it in two situations. You withhold for every employee who lives in Philadelphia, no matter where they work. You also withhold for work performed inside the city, no matter where the employee lives.
Getting either side wrong is expensive. Withhold too little and you owe back taxes and penalties. Withhold too much and your employees chase refunds. We track where each person lives and where they work, then withhold accordingly, and when the rules change we adjust before the next run.
This matters most for crews that move. An employee might spend Monday on a site in the city and Tuesday on a job near Media. Each day is treated differently, and we sort it out payroll by payroll. Office employees who live in the city but work at your suburban location need attention too, because residency alone triggers Wage Tax withholding.
Act 32, Unemployment, and Workers Comp in Pennsylvania
Philadelphia residents on your payroll fall under the Wage Tax. Suburban residents fall under Act 32 instead. Act 32 requires employers to withhold local earned income tax for Pennsylvania employees through county tax collection districts. An employee living near Norristown or West Chester is handled differently than a coworker living in the city, even on the same payroll.
The PA Local Services Tax applies in many municipalities, which adds one more line to get right.
Pennsylvania unemployment compensation applies statewide. New employers register with the state, and every employer files quarterly. We handle the registration, the filings, and any follow-up. The deadlines do not move, so we build them into your payroll calendar.
We also know Pennsylvania workers comp. Your coverage and your payroll data stay in step, and workers comp questions go to the same people who run your payroll. One provider means the answers match.
Working with LMF3
Every client gets a dedicated payroll professional, one person who knows your account and picks up when you call. You talk to the same person every time, not a rotating help desk. Questions during business hours get a same-day response. There are no long-term contracts, so we have to earn your business every payroll.
If you have people outside Pennsylvania, we cover that too. LMF3 runs multi-state payroll and serves businesses nationwide, so one provider can handle the crew in Philadelphia and the employee two states away. One payroll, one point of contact, one set of records.
Our office is at 2607 Egypt Rd, Suite 100, Audubon, PA 19403, and we are open Monday through Sunday, 8AM to 8PM. Call 484-318-5394 or email Lou@LMF3services.com to set up a free consultation.
Frequently Asked Questions
Who has to withhold the Philadelphia Wage Tax?
Employers must withhold the Wage Tax for employees who live in Philadelphia, no matter where they work. They must also withhold it for work performed inside the city, even when the employee lives in the suburbs. If either condition applies to someone on your payroll, withholding is required. We track both conditions for every employee, and getting the setup right on day one avoids amended filings later.
My office is in the suburbs but my crews work jobs in Philadelphia. Does the Wage Tax apply?
Yes. The Wage Tax follows the work, so hours performed inside the city are subject to withholding even if your office sits in Montgomery, Chester, or Delaware County. That is the biggest payroll difference between the city and the suburban counties. We calculate it based on where each person actually worked.
What is Act 32, and does it apply to Philadelphia employees?
Act 32 is the Pennsylvania law that requires employers to withhold local earned income tax through county tax collection districts. It covers employees who live in the suburban counties. Philadelphia residents are covered by the city's Wage Tax instead. We apply the right system to each person on your payroll.
Do I have to sign a long-term contract?
No. LMF3 does not use long-term contracts. We expect the work and the response times to keep you here, not a signature on a multi-year agreement. If the service stops working for you, you are free to go.
Schedule Your Free Consultation
Call (484) 318-5394 or email Lou@LMF3services.com. Free. No obligation. Same-day response during business hours.