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Pennsylvania Statutes Title 43 P.S. Labor § 781.8. Trigger rate redeterminations

Current as of January 01, 2025 | Updated by Findlaw Staff

(a) Beginning in 1992 and each fifth year thereafter, the secretary shall redetermine the rates of the surcharge, employe tax, additional contributions and benefit reduction otherwise applicable under sections 301.7 and 404(e)(4). 1 The secretary shall redetermine the rates so that the unrounded rates yield contribution increases and benefit reductions, on a calendar year basis, approximately equal to the dollar amounts specified in subsection (b). The rates as redetermined shall take effect on January 1 of the following calendar year and shall remain in effect for five years.

(b)(1) For calendar years 2013 through the year determined under paragraph (4), if the trigger percentage as of July 1 of the preceding calendar year is less than two hundred fifty per centum (250%), the rates determined under paragraph (2) shall apply. For calendar years following the year determined under paragraph (4), if the trigger percentage as of July 1 of the preceding calendar year is less than two hundred fifty per centum (250%), the rates determined under paragraph (3) shall apply.

(2) The secretary shall redetermine the rates such that the surcharge assessed under section 301.5  2 shall yield one hundred million dollars ($100,000,000), the additional contribution under section 301.2  3 shall yield two hundred twenty-five million dollars ($225,000,000), the employe tax under section 301.4  4 shall yield one hundred sixty-six million six hundred sixty-six thousand six hundred sixty-six dollars ($166,666,666), and the benefit reduction under section 404(e)(4) shall yield fifty-two million dollars ($52,000,000).

(3) The secretary shall redetermine the rates such that the surcharge assessed under section 301.5 shall yield one hundred thirty-eight million dollars ($138,000,000), the additional contribution under section 301.2 shall yield the sum of three hundred ten million dollars ($310,000,000) plus the amount determined under paragraph (5), the employe tax under section 301.4 shall yield two hundred thirty million dollars ($230,000,000), and the benefit reduction under section 404(e)(4) shall yield seventy-two million dollars ($72,000,000).

(4) The calendar year determined under this paragraph shall be the earliest calendar year subsequent to 2012 on December 31 of which all of the following apply:

(i) There is no unpaid balance of Federal advances under Title XII of the Social Security Act (58 Stat. 790, 42 U.S.C. § 1321 et seq.) or interest thereon.

(ii) There are no outstanding bond obligations under Article XIV of this act  5 and no bond administrative expenses under Article XIV of this act and no such obligations and no such expenses will be due in the following year.

(5) The amount determined under this paragraph shall be the sum of:

(i) twenty per centum (20%) of the amount paid from the Unemployment Compensation Fund pursuant to section 1407(c)  6 during the sixty (60) consecutive calendar months ending on June 30 of the year in which the redetermination occurs, plus

(ii) twenty per centum (20%) of that portion of the amount paid from the Unemployment Compensation Fund pursuant to section 1407(c) during the immediately preceding sixty (60) consecutive calendar months that is not recovered by additional contributions paid for calendar years through the calendar year in which the redetermination occurs.

(c) For the purpose of redetermining the rates under this section, the secretary shall utilize the necessary contribution and benefit activity data from the calendar year immediately preceding the year in which the redetermination is to be done.

(d) The first redetermination shall be done by June 30, 1992, and the rates shall be redetermined each fifth succeeding June 30, and the applicable redetermined rates shall take effect the next January 1.

(e) The redetermined rates shall be rounded in accordance with the following schedule:

(1) If the rate for the surcharge assessed under section 301.5 is not a multiple of one-tenth of one per centum (0.1%), it shall be rounded to the next higher multiple of one-tenth of one per centum (0.1%).

(2) If the rate for the employe tax under section 301.4 is not a multiple of one-hundredth of one per centum (0.01%), it shall be rounded to the next higher multiple of one-hundredth of one per centum (0.01%).

(3) If the rate for the additional contribution under section 301.2 is not a multiple of five-hundredths of one per centum (0.05%), it shall be rounded to the next higher multiple of five-hundredths of one per centum (0.05%).

(4) If the rate for the benefit reduction under section 404(e)(4) is not a multiple of one-tenth of one per centum (0.1%), it shall be rounded to the next higher multiple of one-tenth of one per centum (0.1%).

1 43 P.S. §§ 781.7, 804(e)(4).
2 43 P.S. § 781.5.
3 43 P.S. § 781.2.
4 43 P.S. § 781.4.
5 43 P.S. § 917.1 et seq.
6 43 P.S. § 917.7.
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Cite this article: FindLaw.com - Pennsylvania Statutes Title 43 P.S. Labor § 781.8. Trigger rate redeterminations - last updated January 01, 2025 | https://codes.findlaw.com/pa/title-43-ps-labor/pa-st-sect-43-781-8/

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