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Calculating Contributions, Penalties and Interest

Calculating Employer Contributions

The amount of contributions an employer owes is determined by multiplying an assigned contribution rate by the taxable wages paid to each employee for each calendar year. The taxable wage base for calendar year 2018 and thereafter is $10,000 for each employee.

 

Year

Taxable Wage Base

2012 and prior

$8,000

2013

$8,500

2014

$8,750

2015

$9,000

2016

$9,500

2017

$9,750

2018 and thereafter

$10,000

 

Calculating Employee Contribution

Employers covered under the Pennsylvania UC Law are responsible for withholding employee contributions from each employee's gross wages. The employee contribution rate is determined annually.

The amount of employee contributions an employer must report is determined by multiplying the employee contribution rate by the gross wages paid to each employee for each calendar year. The employee contribution rate has been set at 0.06 percent for calendar year 2019.

 

Year

Employee Rate

2010 - 2012

0.08%

2013 - 2017

0.07%

2018 - 2019

0.06%

 

Penalty for Filing a Report Late

A penalty is assessed against any employer who fails to submit a quarterly tax report when it is due. The penalty is 15 percent of the total contributions payable for the quarter, with a minimum of $125 and a maximum of $450.

Interest Charged on Contributions Paid Late

Interest charges are computed per month, or fraction of a month, on unpaid contributions from the date such contributions are due until the date paid. Both employer and employee contributions are subject to interest charges if paid after the due date.

 

Year

Monthly Interest Rate

Yearly Interest Rate

2006 - 2017

.75%

9%

2018 - 2019

1.0%

12%

 

Interest charges on delinquent contributions and penalty charges on delinquent reports are separate and distinct. If you are unable to pay a quarterly report in full on the due date, you can avoid penalty charges if the report is filed on time. Interest charges will continue to accrue on any unpaid contributions balance until it is paid in full.

Penalty for Dishonored Checks and Failed Electronic Payments

Any check that is subsequently dishonored by the bank upon which it is drawn or any payment by electronic transfer that is not credited upon transmission is subject to penalty. The dishonored remittance penalty is 10 percent of the remittance amount, up to a maximum of $1,000, with a minimum of $25 per occurrence.

Penalty for Non-Compliance with Electronic Filing Requirement

A penalty is assessed against any employer who fails to submit a quarterly tax report electronically through the Unemployment Compensation Management System(UCMS). The penalty is 15 percent of the total contributions payable for the quarter, with a minimum of $125 and a maximum of $450.

Penalty for Non-Compliance with Electronic Payment Requirement

Payments of contributions, reimbursement of benefit charges, interest and/or penalties are required to be remitted electronically through the Unemployment Compensation Management System (UCMS) if the total liability for a payment period is, or at any point was, $5,000 or more, and the employer does not have a department-approved waiver on file. Failure to make payment electronically will result in a penalty equal to the greater of $25 or 10 percent of the remittance amount, up to a maximum of $500.