File Your Quarterly UC Tax and Wage Reports Electronically in UCMS
Effective with the first quarter 2014 filing, employers will be required to electronically file quarterly UC tax and wage reports through UCMS.
If you have not already registered with UCMS to file electronically, the time to do so is now. To access UCMS, go to www.paucemployers.state.pa.us. The Department of Labor & Industry will not be mailing UC-2 and UC-2A forms to employers for any filing period that begins on or after January 1, 2014.
There are several options that employers can use to electronically file their UC tax and wage data.
These options are:
Online reporting (available only if the number of employees in your entity is 100 or less. Employee information can be pre-populated, making it easy to file.)
If you have questions, please contact the UC Employer Contact Center at 866-403-6163, Option 2 or, within the Harrisburg area at 717-787-7679, Option 2, weekdays from 8:00 a.m. until 4:30 p.m., Eastern Time. To ensure proper handling of your inquiry, please be prepared to provide the name of your business and your PA UC account number.
UC-1921W Refusal of Suitable Work
Has your business offered a job to an applicant who is receiving unemployment compensation benefits, and the applicant refused the offer?
Section 402(a) of Pennsylvania Unemployment Compensation Law provides, in part, that an employee shall be ineligible for compensation for any week in which their unemployment is due to failure, without good cause, to accept suitable work; provided that the employer who offers the work notifies the department of the refusal within seven days from when the offer is made.
The department has created a new form, UC-1921W, so employers can notify the department that suitable work was refused. The form can be saved, printed, and submitted directly to the department online. Be an active partner in helping to improve the integrity of unemployment compensation payments. Notify the department within seven days of the offer by submitting the form, UC-1921W, online. If you prefer to send the form via facsimile, please complete, print, and fax the form with any additional documentation to UIAS at 717-772-0378.
Increase in Taxable Wage Base and Decrease in State Adjustment Factor Beginning in 2013
As part of the Act 60 amendments to the Pennsylvania UC Law, the taxable wage base for employer contributions will be increasing each year from 2013 through 2018. At the same time, the maximum state adjustment factor has been decreased from 1.5% to 1.0% through 2016 and will decrease further thereafter. The following chart lists the taxable wage base and state adjustment factor amounts beginning 2013:
Taxable Wage Base for
(per employee per year)
2018 and thereafter
The following solvency measures will be in effect for 2013:
A 5.1 percent (.051) surcharge on employer contributions, reduced from 5.8 percent in 2012. The surcharge adjustment is computed by multiplying your basic rate by the 5.1 percent surcharge. The surcharge adjustment does not apply to reimbursable employers.
A 0.65 percent (.0065) additional employer contribution, unchanged from 2012. The additional contribution is added to your tax rate as adjusted by the surcharge. The additional contribution is not applicable to non-delinquent newly liable and reimbursable employers.
A 1.1 percent (.011) interest factor, increased from 0.2 percent in 2012. Due to the passage of Act 60 of 2012, the interest factor will be used to fund the payment of bond obligations beginning in 2013. It may also be used to fund payment of interest on federal loans, although Pennsylvania does not currently have a federal loan balance. The interest factor is not applicable to non-delinquent newly liable employers and reimbursable employers. Also, it is not credited to the employer's reserve account nor considered for federal certifications.
A 0.07 percent (.0007) tax on employee wages, or 70 cents on each $1,000 paid, reduced from 0.08 percent in 2012. Employee withholding contributions are submitted with each UC-2/2A quarterly report. Employee withholding applies to the total wages paid in 2013. It is not limited to the $8,500 taxable wage base for employer contributions.
A 1.7 percent (.017) benefit reduction, reduced from 2.3 percent in 2012. With few exceptions, the weekly UC benefit amount for all claimants will be reduced by 1.7 percent.
If you have any questions concerning this information, please contact the Employer Contact Center at 866-403-6163, or within the Harrisburg area at 717-787-7679, Monday through Friday from 8:00 a.m. until 4:30 p.m.
The department's regular mailing of Pennsylvania Unemployment Contribution, or UC, rate notices for 2013 was completed December 31, 2012. The department will continue to issue rate notices for 2013 throughout the year, as necessary, to newly registered employers and to revise incorrect rates.
The Federal Unemployment Tax Act (FUTA) imposes on employers a tax rate of 6 percent on the first $7,000 of wages paid to each employee per calendar year. Normally, employers that pay contributions to a state UC fund may claim a credit against their FUTA tax, up to 5.4 percent of federal taxable wages. However, the recent recession depleted the UC fund and the commonwealth borrowed from the federal government from 2009 through July, 2012, to pay UC benefits. 2011 marked the second consecutive year that began with the commonwealth having an outstanding debt to the federal government, As a result, employers saw their FUTA credit reduced and their FUTA liability go up 0.3 percent on January 1, 2012, for wages paid in 2011. An additional 0.3 percent in FUTA credit reduction was scheduled to take effect on January 1, 2013, for wages paid in 2012.
Act 60 of 2012 authorized the commonwealth to refinance this outstanding debt through the issuance of bonds in the private market. On July 25, 2012, the commonwealth paid off the outstanding federal debt in full. This repayment restored the full FUTA tax credit for wages paid in 2012 and 2013.
Questions regarding the FUTA credit can be directed to the IRS website at www.irs.gov/businesses. You may also call the IRS Business and Special Tax Line at 800-829-4933.
Employers: Save Money by Providing Accurate Information to Employees Who May File for UC Benefits
Form UC-1609P (Employer Information Form) can help your company save money by reducing inaccurate claims, and subsequently, inaccurate charges to your account associated with employees that leave your organization and file for unemployment compensation benefits. Complete the form, and provide a copy to every employee who leaves your organization. This simple step could save your company time and money by providing accurate information for use when unemployment claims are filed by one of your employees. If wrong information is given on a claim, it can create delays that can lead to a wrong financial determination, which could increase your tax rate and/or require extra time and energy on your part to correct.