Before the 50 percent reimbursements can be issued pursuant to the CARES Act, the new law requires that employers pay in full their benefit charges. Reimbursement billings are issued monthly for non-profit employers and quarterly for government entities. The billings for March benefit charges were issued on April 11, 2020, with a payment due date of May 10, 2020.
On March 27, 2020, Governor Tom Wolf signed Act 9 of 2020 to temporarily amend the Pennsylvania Unemployment Compensation (UC) Law. Pursuant to these emergency provisions related to COVID-19, reimbursable employers who paid the solvency fee for calendar year 2020 will receive automatic relief from charges for those employees whose UC claims are due to the COVID-19 outbreak or public health officials’ efforts to contain and prevent the spread of COVID-19.
Act 9 of 2020 also allows reimbursable employers who did not pay the solvency fee for the calendar year 2020 to have 120 days to repay charges for COVID-19-related claims from the date UC Tax Services (UCTS) issues a Statement of Account. UCTS may extend the 120-day deadline by an additional 60 days upon the request from an employer who demonstrates financial hardship. UCTS will offer interest-free payment plans to employers who demonstrate financial hardship. No interest shall accrue or be charged on late payments until January 1, 2021. Once reimbursable employers who did not pay the solvency fee pay their charges in full, they will receive the 50 percent reimbursement pursuant to the CARES Act.