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Employer UC & Tax Services

Important Information

COVID-19 Relief from Charges for Employers

We are aware that employers' UC-640 charge statements are indicating that employers are being charged for all benefits.  All charges which are a result of separation due to COVID-19 will receive credits, retroactively. You do NOT need to contact us, and you do NOT need to send in any paper work. The department is working on the programming needed to grant automatic relief from charges.  Benefit charging will resume after the governor declares an end to the pandemic disaster. The UC-640 charge statement shows you all the individuals you would otherwise be charged for if they continue filing benefits after the disaster is ended.

Protecting Nonprofits from Catastrophic Cash Flow Strain Act (S.4209)

On August 3, 2020, the Protecting Nonprofits from Catastrophic Cash Flow Strain Act was enacted into law. This Act amends the CARES Act and now allows for reimbursable employers that are eligible to receive reimbursement (those that did not pay the Solvency Fee for calendar year 2020) to only pay 50% of the amount due on eligible benefit charges. Previously the CARES Act required that 100% of the benefit charges for the billing period be paid before the 50% reimbursement could be applied. The Department will post the reimbursement to the billing period once the funding for that billing period has been received from the US Treasury. The reimbursement amount will be reflected as a payment/credit on your account and will be applied to the appropriate billing period. If an over-payment exists after the 50% reimbursement is applied, a credit will be created that may be used to pay future benefit charge amounts due.

Questions regarding this information may be directed to the UC Employer Contact Center at 1-866-403-6163 which is staffed weekdays, Monday through Friday, from 8:00 am to 4:30 pm.

Modernizing the Unemployment Compensation Management System

The Unemployment Compensation Management System (UCMS) has undergone a facelift! On June 13, 2020, the Department replaced the outdated portal technology with a more modern responsive design, making it compatible with most mobile devices.

The new design features Action Icons, which reduce the number of clicks it takes a user to complete an action. If you are not sure what the Action Icon does, simply hover over the icon for information.

The image below highlights the new features and is provided to assist you in navigating the newly designed UCMS. Click on the thumbnail to open a full version.

U C M S placemat

Taxable Wage Base and State Adjustment Factor

As part of the Act 60 amendments to the Pennsylvania UC Law, the taxable wage base for employer contributions increased each year from 2012 through 2018. At the same time, the maximum state adjustment factor decreased to 1.0% for 2013-2016 and was further reduced for 2017 and 2018 and thereafter. The following chart lists the taxable wage base and state adjustment factor amounts beginning 2012:

Calendar Year
Taxable Wage Base for
Employer Contributions
(per employee per year)
Maximum State
Adjustment Factor
2012 and prior
$8,000
1.5%
2013
$8,500
1.0%
2014
$8,750
1.0%
2015
$9,000
1.0%
2016
$9,500
1.0%
2017
$9,750
0.85%
2018 and thereafter
$10,000
0.75%

The following solvency measures are in effect for 2021:

Employer Taxes

A 5.4 percent (.054) Surcharge on employer contributions. The surcharge adjustment is computed by multiplying your basic rate by the 5.4 percent surcharge. The result is added to the basic rate. The surcharge adjustment does not apply to reimbursable employers.

A 0.50 percent (.0050) Additional Contributions. The additional contributions are added to your basic tax rate. The additional contributions do not apply to non-delinquent newly liable and reimbursable employers.

Interest Factor. Under Act 60 of 2012, the interest factor is used to fund the payment of bond obligations and interest on federal loans. It is added to the basic rate. The interest factor does not apply to non-delinquent newly liable employers and reimbursable employers. Also, it is neither credited to the employer's reserve account nor considered for federal certifications. The Interest Factor for 2021 is 0.00% effective January 1st, 2021.

Employee Contributions

A 0.06 percent (.0006) tax on employee gross wages, or 60 cents on each $1,000 paid. Employee withholding contributions are submitted with each quarterly report. Employee withholding applies to the total wages paid in 2021. It is not limited to the $10,000 taxable wage base for employer contributions. Failure to withhold or remit this employee tax could result in interest charges and may affect your contribution rate for subsequent years.

Benefit Reduction

A 2.4 percent (.024) Benefit Reduction. With few exceptions, the weekly UC benefit amount for all claimants will be reduced by 2.4 percent.

UC Taxation of Limited Liability Companies

For Pennsylvania unemployment compensation (UC) tax purposes, a limited liability company (LLC) may be an employing entity like any other form of business entity. An LLC must pay UC contributions on wages paid to its employees. Additional information is available here.

What Employers Need to Know:

 Has your business offered a job to an applicant who is receiving UC benefits, and the applicant refused the offer?

Please complete Department form, UC-1921W Employer Questionnaire Refuse Suitable Work, to assist employers to provide the required notification that suitable work was refused.

Be an active partner in helping to improve and maintain UC payment integrity. Notify the department within seven days of the offer by faxing form UC-1921W to 717-772-0378.

Mandatory Form Helps You Save Money by Providing Accurate Information to Employees Who May File for UC Benefits

Form UC-1609 (Employer Information Form) must be completed and provided to all separating employees and/or employees working reduced hours. It can help save your company time and money by providing accurate information for use when unemployment claims are filed by one of your employees. If wrong information is given on a claim, it can create delays that can lead to a wrong financial determination which could increase your tax rate and/or require extra time and energy on your part to correct.

*There is also a form available for your Spanish speaking employees Form UC-1609(ESP).