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 following chart reflects the taxable wage base for the past several years.
|
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 0.07 percent for the calendar year 2024.
| Year |
Employee Contribution Rate |
Decimal Figure
|
| 2010 - 2012 |
0.08%
|
(.0008)
|
|
2013 - 2015 |
0.07% |
(.0007)
|
2018 - 2022
|
0.06%
|
(.0006)
|
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.
2006 - 2017
|
.75% |
9%
|
|
2018 - thereafter |
1.0% |
12%
|
Interest charges on delinquent contributions and penalty charges on delinquent reports are separate and distinct. If you cannot 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 Remittances and Electronic Payments
Any check that is subsequently dishonored by the financial institution upon which it is drawn or any payment by an 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) and does not have a department-approved waiver on file. The penalty is 15 percent of the total contributions due 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, per occurrence.