The Wage Tax must be filed quarterly and paid on a schedule that corresponds with how much money is withheld from employees' paychecks. Pennsylvania has a flat individual income tax rate of 3.07 percent, meaning that every resident pays the same rate regardless of their income level.If you receive SSDI benefits in Pennsylvania, they may be taxable, depending on how much you earn in additional income from other sources. The amount withheld from each paycheck for income taxes depends on the employee's W4 form, which they complete when hired. Don't worry we've compiled a list of common mistakes to avoid when filling out your longterm disability claim. STD applies for disabilities up to six months in duration, while LTD covers you if you're continuously disabled for longer than six months. Here at Atticus, we provide free legal advice on filling out your application and finding the right lawyer for your case. For starters, all Pennsylvania employers will withhold federal and state income taxes from your paychecks, as well as FICA taxes. Federal and state law authorized the creation of PA ABLE accounts. The official term for withholding money from a payment is "offset" or "administrative offset.