Covered Employment Under the PA UC Law
Section 4(l) of the Pennsylvania UC Law states in part:
"1. 'Employment' means all personal service performed for remuneration by an individual under any contract of hire, express or implied, written or oral, including service in interstate commerce and service as an officer of a corporation.
"2. The term 'Employment' shall include an individual's entire service performed within or both within and without this Commonwealth, if
(A) The service is localized within this Commonwealth, or
(B) The service is not localized in any state but some of the service is performed within this Commonwealth and (a) the base for operations or place from which such service is directed or controlled is in this Commonwealth, or (b) the base for operations or place from which such service is directed or controlled is not in any state in which some part of this service is performed, but the individual's residence is in this Commonwealth . . ."
Uniform Definition of Employment
The objective of the uniform definition of employment is to cover under one state law all the service performed for one employer by an individual, wherever it is performed. The following guidelines for applying the statutory provisions are recommended.
First, it is necessary to determine whether the state service is localized in any state. Only if the service is not localized in any state is any other test necessary. If the service is not localized, it is necessary to determine in what state the individual's base for operations is located, and whether the individual performs any service in that state.
If the individual has no base for operations or if no service is performed in the state in which the base for operations is located, then it is necessary to look to the state from which the individual's service is directed or controlled. It is only when coverage is not determined by any of these tests that residence becomes a factor.
It may be necessary to apply four tests to determine the state of coverage.
- Localization of Service
- Base of Operations
- Place of Direction and Control
Please refer to the Localized and Non-Localized Employment Pamphlet UCP-7 or contact the UC Employer Contact Center at 1-866-403-6163 for more information.
All employers providing covered employment whether full and/or part-time must register with the Office of Unemployment Compensation Tax Services (OUCTS) by completing a PA-100.
Certain types of employment are specifically excluded from coverage under the Pennsylvania UC Law. Some examples of excluded employment:
1. Family Employmen
- an individual in the employ of a son, daughter, or spouse, and
- a child under the age of 18 in the employ of a parent.
Please refer to Pamphlet UCP-35 or contact the UC Employer Contact Center at 1-866-403-6163 for more information on Family Employment.
2. 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 in the current or preceding calendar year, or
- pays $20,000 in cash wages in any calendar quarter of the current or preceding calendar year.
3. Domestic Employment
Individual homeowners, local college clubs, fraternities or sororities paying $1,000 or more in cash wages in any quarter of the current or preceding calendar year are subject to the provisions of the Pennsylvania UC Law.
Voluntarily Elected Coverage
Any employer not subject to the Pennsylvania UC Law has the option of voluntarily requesting coverage, although UCTS must approve the request before coverage is extended. Upon approval, the elected coverage is binding on the employer for not less than two years. To request coverage, an employer must file an application with UCTS. Please contact the UC Employer Contact Center at 1-866-403-6163 for more information.
The "Catch-All Clauses" Under FUTA
Section 4(x)(6) and Section 4(l)(6) of the Pennsylvania UC Law have been termed the "catch-all clauses." These provisions state that regardless of the exceptions contained within the Pennsylvania UC Law, services and remuneration for services performed which are considered covered employment under the Federal Unemployment Tax Act (FUTA) will also be considered covered employment under the Pennsylvania UC Law.
Limited Liability Company (LLC) and Restricted Professional Company (RPC)
For information concerning employment coverage please contact the UC Employer Contact Center at 1-866-403-6163.