No. Pennsylvania (PA) tax law allows only employee contributions to IRC Section 125 cafeteria plans for coverage for hospitalization, sickness, disability or death, supplemental unemployment benefits, or strike benefits as exempt, but only to the extent they are exempt for federal income tax purposes.
Employee contributions for other benefits, such as dependent care and contributions to an IRC Section 401 plan, are not excludable from Pennsylvania taxable compensation. If the employer's plan provides life insurance coverage that includes coverage for an employee's dependent child and the employee pays a portion of the premium for that coverage, that portion of the employee's payment is not excludable. Click here for more information.
Before tax contributions to a retirement plan are not tax exempt for PA purposes, These funds would be included in the gross taxable wages for the PA income tax return. The reason for this is because none of it is taxed when distribution begins. Here is a link to a PA Retirement brochure.
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