Important UC Tax Facts for 2013 - Revised
The Office of Unemployment Compensation (UC) Tax Services plans to mail the Pennsylvania Contribution Rate Notice for calendar year 2013, Form UC-657, on December 31, 2012. Employers who receive their 2013 UC Contribution Rate Notice with this mailing date will have the following important tax deadlines:
Jan. 30, 2013 is the last day to file a timely Voluntary Contribution. (A timely Voluntary Contribution must be filed within 30 days from the mailing date of the UC Contribution Rate Notice but in no case later than 120 calendar days from the beginning of the calendar year.)
April 1, 2013is the last day to file a timely rate appeal to the contribution rate reflected on the UC Contribution Rate Notice. (A timely rate appeal must be filed within 90 days of the mailing date of the UC Contribution Rate Notice.) Please note that the Surcharge Adjustment, Additional Contributions and Interest Factor are not appealable items.
April 30, 2013 is the last day to file a timely election for a Debit Reserve Account Balance Adjustment.
Employers who receive a 2013 UC Contribution Rate Notice with a mailing date other than Dec. 31, 2012, will need to adjust these deadlines according to the instructions on the reverse side of the form.
Increase in Taxable Wage Base 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 Employer Contributions (per employee per year)
||Maximum State Adjustment Factor|
|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. Also, it is not credited to the employer's reserve account nor considered for federal certifications.
Employer Taxes Example:
|2013 Total |
||+ (.0210 x .051 = .001071) +
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. Failure to withhold or remit this employee tax could result in interest charges and may affect your contribution rate for subsequent years.
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.
Information on penalties and interest for unpaid UC taxes will be available online in the near future on this website. To access this information, select "Unemployment Compensation,” “Employer Services,” “UC Tax Information,” and then select “Penalties & Interest.”
If you have any questions concerning this information, please contact the Employer Contact Center at 866-403-6163, or 717-787-7679, Monday through Friday from 8 a.m. until 4:30 p.m.
Media Contact: Sara Goulet