January 18, 2016
Employer wage base increased to $9,500, up $500 over last year.
- Federal Unemployment Compensation (UC) wage base remains at $7,000.
- Pennsylvania employee UC rate applies to total wages.
Rate tables unchanged.
- Employer UC rate ranges from 2.801% to over 11%, plus 3% for delinquent accounts.
- Employee UC rate is 0.07%, which is to be withheld from wages.
Time-sensitive actions to potentially reduce 2016 rate.
- Voluntary contribution — by Feb. 1st.
- Buys down current UC rate by increasing reserve account.
- Generally advantageous if headcount is expected to significantly increase in 2016.
- Due 30 days from the Rate Notice mailing date
- Verify calculations — by March 30th. Appeal due 90 days from the Rate Notice mailing date.
- Election to mitigate negative reserves — by April 30th.
Controlling future UC tax rates. Timely appeals to prevent reductions in UC reserve account.
- Challenge improper benefit charges and awards to terminated employees
- An appeal is due 15 days after a determination is issued.
Recovery of past overpayments. A UC rate may be overstated if past mergers, acquisitions and/or intercompany workforce transfers did not capture predecessor reserve balances and/or employment experiences. This can be significant in Pennsylvania where …
- The reserve ratio covers an employer’s lifetime.
- The transfer of third-party predecessor attributes is optional.
- Transactions are self-reported.
- There is no applicable statute of limitations
- Overpayments are either creditable or refundable.
For More Information
For more information, please contact Thomas A. Bowen at 717.255.7363.
Related Attorneys:
Thomas A. Bowen
Theresa M. Zechman
This News Alert has been prepared for informational purposes only and should not be construed as, and does not constitute, legal advice on any specific matter. For more information, please see the disclaimer.