Unemployment Compensation ‘Relief From Charges’ Bill Passes House

From PA Chamber of Business & Industry

The state House voted 193-2 last week in favor of a modest reform to Pennsylvania’s Unemployment Compensation tax law for employers.

Currently, employers’ UC tax rates may increase when former employees qualify for benefits.  The law allows 15 days for employers to seek relief from these “charges” under certain circumstances (for example, if the former employee were to have voluntarily quit).  This time-frame is often not sufficient for employers to become aware of the charges, determine their eligibility for relief and properly file the paperwork to avoid an undue tax increase.

House Bill 68 lengthens the window of time for employers to apply for this relief from 15 to 21 days, providing a little extra time to navigate the process and, if eligible, rightfully avoid higher taxes.  Before the House voted on the bill, an amendment was adopted that shortened the window from 30 to 21 days, which was suggested to bring this process in line with other elements of UC law.  Prior to the adoption of the amendment, the PA Chamber sent a memo voicing support for the bill. It now awaits consideration in the Senate.