Payroll Tax Proposal for PA Residents

Pennsylvania House Bill 2779, introduced in 2022 proposes a long-term care (LTC) payroll tax.

Key features:

• The tax would be 0.58% of an employee's income, including salary, bonuses, and commissions 

• The bill would create a new benefit program that provides up to $100 per day in benefits, up to a lifetime maximum of $36,500. 

• Self-employed individuals could opt in to the program 

• To qualify for benefits, individuals must be at least 18 years old and have worked at least 500 hours per year in Pennsylvania 

• Individuals must be Pennsylvania residents to receive benefits 

• Claim qualification is based on three activities of daily living (ADLs) 

• The bill would establish a Long-Term Services and Supports Commission, Council, and Trust Fund 

• Individuals who already have private LTC coverage would be exempt from the tax