In June, Pennsylvania Governor Tom Corbett signed Senate Bill 1310 to implement a comprehensive unemployment compensation (UC) law reform. The law is intended to solve two state problems — (1) eliminate nearly $4 billion in debt owed to the federal government by Pennsylvania, borrowed to meet the unemployment compensation demands of the Great Recession; and (2) repair the state’s insolvent UC structure that caused the debt problem in the first place. The law is slated to take effect in January 2013.
For business owners, some of the benefits include of the UC reform measures include:
- Increase the taxable wage base from $8,000 to $10,000 and gradually cap
the State Adjustment Factor at 0.75 percent in six years.
- Restores normal FUTA tax credits to employers.
- Stabilizes employers’ payments.
Reigning in and stabilizing UC tax payments for employers is expected to result in additional job growth to help bolster Pennsylvania’s economy.
On the worker side, the new law updates Pennsylvania’s UC benefit structure by increasing the base-year wage requirement from an average of 37 percent outside the high quarter to at least 49.5 percent. The changes in eligibility for benefits will not affect any current claimants, and is expected to affect less than 10 percent of new claimants.
For more information about your UC obligations as an employer, or for help with other matters related to your business, the attorneys at Scolieri Law Group, P.C. can help. Located in western Pennsylvania, our attorneys are experienced in the business laws affecting you. Contact us today at (412)765-0546 or email@example.com.