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Exclusions

There are some exceptions to what is considered "covered employment" under the Pennsylvania (PA) UC Law.

Sole Proprietorships / Partnerships

Owners of an individual entity (a sole proprietorship) and owners of a partnership are considered self-employed businesspersons. These individuals are considered the "employer entity" and cannot be the "employee". Therefore, remuneration paid to these owners is not considered "wages" and is not covered for PA UC tax purposes.

Family Employment

Family employment is excluded from coverage IF

  • an individual is employed by a son, daughter, or spouse, or
  • a child under the age of 18 is employed by a parent.

In addition to "blood relatives", "family" also includes:

  • Stepchildren and their parents
  • Foster children and their parents
  • Adopted children and their parents.

Refer to Pamphlet UCP-35 for more information on Family Employment.

Agricultural Employment

An agricultural employer has covered employment if the entity:

  • employs at least 10 full-time or part-time employees for any part of a day in 20 or more calendar weeks during the current or preceding calendar year, or
  • pays $20,000 in cash wages in any calendar quarter of the current or preceding calendar year.

Domestic Employment

Individual homeowners, local college clubs, fraternities or sororities paying $1,000 or more in cash wages during any quarter of the current or preceding calendar year are subject to the provisions of the PA UC Law.

Elected vs. Appointed Officials

Services of an elected official are excluded from coverage under the PA UC Law.

The PA UC Law does not contain an exclusion for appointed officials; however, services performed by the following individuals are not covered under the UC Law:

  • Individuals serving in positions which are designated as a major non-tenured policy-making or advisory position; and
  • Individuals serving in positions which are designated as a policy-making position the performance of the duties of which ordinarily does not require more than eight hours per week.