The General Assembly recently approved Senate Bill 1083, which now moves to Gov. Tom Wolf for his signature.
The bill includes a provision intended to protect small employers from unfair unemployment compensation (UC) tax increases.
According to Department of Labor and Industry estimates, approximately 2,700 Pennsylvania employers could have their UC tax rate increase because of the prolonged shutdown of many businesses during the COVID-19 pandemic. The businesses also had previously earned a lower, experienced-based UC tax rate by not having any layoffs in recent years.
Employers that report no payroll in one of the last three years lose experience-based ratings and revert to the higher default tax rate.
Senate Bill 1083 includes a temporary exemption so employers forced to shut down during the pandemic can maintain a positive experience-based UC tax rating.
“An employer in Schuylkill County followed all guidance from the state during the COVID-19 pandemic and kept his business closed, and now is facing a tax increase of thousands of dollars. That’s just wrong,” state Sen. David Argall (R-Schuylkill) said.
During a recent House Majority Policy Committee hearing in the Pottsville area, a Port Clinton restaurant owner testified his UC tax rate more than quadrupled.
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