Ullman applauds Gov. Wolf’s lower Unemployment Compensation tax rate
HARRISBURG, Jan. 13 – State Rep. Wendy Ullman, D-Bucks, today applauded Gov. Tom Wolf for his work on reducing Unemployment Compensation tax rates. The Department of Labor & Industry eliminated the 1.1% UC tax-rate interest factor effective January 1, 2020.
This created the lowest UC tax rate since 1979 and could save an estimated $552 million this year.
“Driving down these tax rates means lowering costs for doing business in Pennsylvania,” Ullman said. “This means that more of our small-business owners can invest in their companies and workforce, leading to more jobs and fairer benefits. I want to thank Governor Wolf for working so hard to drive down costs for our business owners, as this will lead to better pay and conditions for our hard-working families.”
Today’s rate cut announcement comes following completion of repayment of Pennsylvania’s UC bond debt on January 1, 2020. Act 60 of 2012 included provisions for refinancing Pennsylvania’s federal loans for UC through the sale of bonds to obtain the lowest possible interest rate. The 1.1% interest factor was assessed for businesses from 2013 to 2019 to repay the UC bonds. That action saved employers approximately $57 million in interest costs.
Unemployment Compensation provides temporary wage replacement income to qualified workers who have lost their job through no fault of their own. The Unemployment Compensation Law requires covered employers to make contributions into a pooled reserve known as the UC Trust Fund. These contributions are used to pay benefits, for a limited time, to jobless individuals who can work but are unemployed while looking for another job.
For more information, those interested can visit the UC website at uc.pa.gov or contact Ullman’s district office at (267) 768-3670.