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RELIEF FROM CHARGES FOR REIMBURSABLE EMPLOYERS

Section 213 of the PA UC Law provides reimbursable employers an annual opportunity to file an election to be eligible for relief from charges for UC benefits associated with base-year employment/wages that are paid to a claimant who:
 
  • Quit work for the employer without good cause attributable to the employment, or
  • Was discharged by the employer for willful misconduct, or
  • Was separated from the employer for reasons that involve fault on the part of the claimant, or
  • Was discharged or temporarily suspended by the employer for failure to submit and/or pass a drug/alcohol test conducted pursuant to an established substance abuse policy, or
  • Is still working for the employer in a part-time job that is continuing without material change and was separated from another base-year employer, or
  • Was separated from the employer due to a cessation of business of 18 months or less caused by a disaster. (A disaster is defined as a fire, flood, or other physical occurrence beyond the employer's control, caused naturally or accidentally.)
All employers financing UC coverage under the reimbursable method will receive notification at the end of each calendar year to exercise an option to elect relief from charges for the subsequent calendar year. To be eligible, a reimbursable employer must:
 
  • Pay a nonrefundable solvency fee assessed by the Office of Unemployment Compensation Tax Services (UCTS) for the applicable calendar year. The solvency fee must be paid no later than thirty (30) days from the date on the solvency fee notice, and
  • File all quarterly tax reports through the second quarter of the calendar year preceding the year of election.
The yearly notification will include the amount of the solvency fee due, which is calculated by multiplying the predetermined solvency fee rate by the employer's gross wages for the four consecutive calendar quarters ending June 30 of the preceding calendar year. A minimum solvency fee of $25.00 must be paid if the employer's total gross wages multiplied by the solvency fee rate results in an amount that is less than $25.00.
 
Upon approval of the election by UCTS, the participating reimbursable employer is eligible to request relief from the UC benefit payments associated with base-year employment meeting the above-specified criteria, and otherwise chargeable to their account, on applications for benefits (claims) that are effective within the calendar year for which the solvency fee is paid, regardless of when the compensation is paid.
 
NOTE: Reimbursable employers are not required to participate in the relief from charge option. Participation is voluntary.