From the Unemployment Compensation Office shared by friend of PASPA Geoff Moomaw at Interstate Tax Service
Below are FAQs concerning the CARES Act and how it relates to reimbursable account billings. These FAQs can also be found on our website, www.uc.pa.gov
Q1. The CARES Act provides for state and local governmental entities, certain nonprofit organizations, and Federally recognized Indian tribes that make payments in lieu of contributions to their state’s unemployment fund to be reimbursed at 50 percent for payments made on benefit claims from March 13, 2020 to December 31, 2020. When will Pennsylvania begin issuing those reimbursements?
Before the 50 percent reimbursements can be issued pursuant to the CARES Act, the new law requires that employers pay in full their benefit charges. Reimbursement billings are issued monthly for non-profit employers and quarterly for government entities. The billings for March benefit charges were issued on April 11, 2020, with a payment due date of May 10, 2020.
On March 27, 2020, Governor Tom Wolf signed Act 9 of 2020 to temporarily amend the Pennsylvania Unemployment Compensation (UC) Law. Pursuant to these emergency provisions related to COVID-19, reimbursable employers who paid the solvency fee for calendar year 2020 will receive automatic relief from charges for those employees whose UC claims are due to the COVID-19 outbreak or public health officials’ efforts to contain and prevent the spread of COVID-19.
Act 9 of 2020 also allows reimbursable employers who did not pay the solvency fee for the calendar year 2020 to have 120 days to repay charges for COVID-19-related claims from the date UC Tax Services (UCTS) issues a Statement of Account. UCTS may extend the 120-day deadline by an additional 60 days upon the request from an employer who demonstrates financial hardship. UCTS will offer interest-free payment plans to employers who demonstrate financial hardship. No interest shall accrue or be charged on late payments until January 1, 2021. Once reimbursable employers who did not pay the solvency fee pay their charges in full, they will receive the 50 percent reimbursement pursuant to the CARES Act.
Q2. When will employers begin seeing the 50 percent reimbursements on the billings?
Before Pennsylvania can issue the 50 percent reimbursement, the charge amounts must be fully paid by the employer and then submitted to the Federal Unemployment Account which will then transfer the appropriate amount to the Pennsylvania Unemployment Account for disbursement. Since transfers are submitted monthly, we anticipate at least a 60 day turnaround.
Q3. How will that reimbursement be administered?
The Department is currently revising the Statements of Account (SOA) that are mailed to reimbursable employers to reflect the amount of benefit charges that are eligible for the 50 percent reimbursement. The SOA will also reflect the reimbursement received for those charges. These new items will be kept separate from the normal benefit charges and benefit credits reflected on the SOA. It is anticipated that the 50 percent reimbursement will be allowed to be used to offset new benefit charges for the billing period. If any credits remain after the December 2020 SOA is fully paid, a refund may be requested for the balance or the credit can remain on your account to offset future charges.
Q4. Is there is anything we need to do to preserve our claim to the reimbursement. Is there a form or application we need to complete now?
There is no action needed on your part as this process will be automatically administered by the Department. If you have specific questions regarding your account or SOA, please feel free to contact our UC Employer Contact Center at 1-866-403-6163 which is staffed weekdays, Monday through Friday, from 8:00 am to 4:30 pm.
Q5. Does the CARES Act provide any relief for reimbursable employers whose charges are not a result of COVID-19?
Yes, the CARES Act’s 50 percent reimbursement applies to all payments made in lieu of contributions for weeks of unemployment beginning on or after March 13, 2020 and ending on or before December 31, 2020, even if the unemployed individual is not unemployed as a result of COVID-19.
Office of UC Tax Services
PA Department of Labor and Industry
651 Boas Street l Room 920 l Harrisburg, PA 17121
UCMS Self Service Portal: www.uctax.pa.gov
UC Information: www.uc.pa.gov