[40 Pa.B. 5179]
[Saturday, September 11, 2010]
[Continued from previous Web Page]
RELIEF FROM BENEFIT CHARGES § 63.31. [General requirement] Applicability and definitions.
(a) [Whenever a claimant is paid unemployment compensation, his former employers shall be charged for the amount of benefits paid to him. These charges shall be made in proportion to the wages paid by the employer during the base year of the claimant as compared with the total wages paid by all of his employers during the same period.] An employer that pays contributions may be relieved of benefit charges in accordance with section 302(a) of the law (43 P. S. § 782(a)) and this chapter.
(b) [An employer may exert some control over the determination of his contribution rate by maintaining and providing necessary records and information which will enable the Bureau to charge employer accounts properly and relieve charges under certain conditions.] If an employer that makes payments in lieu of contributions satisfies the requirements of section 213 of the law (43 P. S. § 773) for a calendar year, the employer may be relieved of charges, in accordance with section 302(a) of the law and this chapter, for benefits paid on applications for benefits that take effect during that calendar year.
(c) The following words and terms, when used in §§ 63.31—63.37, have the following meanings, unless the context clearly indicates otherwise:
Material change—A substantial reduction in wages or in the number of hours or days ordinarily worked by the claimant employed in part-time work.
Return to work—Resumption of employment with an employer from whom the claimant had been separated, at the level of employment that existed immediately prior to the separation.
Separation from employment—A termination of the employment relationship, a suspension of active employment, or a reduction in the number of hours worked by the claimant.
§ 63.32. Reasons for [separation] relief from benefit charges.
(a) [Section 302(a) of the law (43 P. S. § 782(a)) provides that a base year employer may obtain relief from the charges for benefits paid to an ex-employe as explained in § 63.31 (relating to general requirement) if the claimant has separated from his most recent work for such employer due to one of the following reasons:
(1) When the claimant leaves work without good cause attributable to his employment.
(2) When the claimant is discharged for willful misconduct connected with his work.
(b) A base-year employer may obtain relief from charges for benefits paid as explained in § 63.31 (relating to general requirement) when the claimant works part-time for a base-year employer in addition to his full-time job, and such claimant, subsequent to a separation from his full-time job, continues his part-time work with the employer without a material change.]
Under section 302(a)(1) of the law (43 P. S. § 782(a)(1)), an employer may be granted relief from benefit charges in the following circumstances:
(1) When the claimant was separated from employment with the employer under conditions that would be disqualifying under section 402(e) of the law (43 P. S. § 802(e)), which provides that an individual is ineligible for benefits if the individual is unemployed due to willful misconduct.
(2) When the claimant was separated from employment with the employer under conditions that would be disqualifying under section 402(b) of the law, which provides that an individual is ineligible for benefits if the individual voluntarily left work without a necessitous and compelling reason.
(3) When the claimant was separated from employment with the employer under conditions that would not be disqualifying under section 402(b) of the law, but do not involve good cause attributable to the claimant's employment.
(4) When the claimant was separated from employment with the employer under conditions that would be disqualifying under section 3 of the law (43 P. S. § 752)), which provides that an individual must be unemployed through no fault of his own to be eligible for benefits.
(5) When the claimant was separated from employment with the employer under conditions that would be disqualifying under section 402(e.1) of the law, which provides that an individual is ineligible for benefits if the individual is unemployed due to failure to submit to or pass a drug test.
(6) When the claimant was separated due to a major natural disaster declared by the President of the United States.
(b) Under section 302(a)(2) of the law, an employer may be granted relief from benefit charges when the claimant continues to work part-time for the employer after being separated from other employment.
(c) Under section 302(a)(2.1) of the law, an employer may be granted relief from benefit charges when the claimant was separated due to a cessation of business of 18 months or less caused by a disaster.
§ 63.33. [Information accompanying requests] Request for relief from benefit charges.
(a) [A Form UC-44FR ''Request for Relief from Charges'' under section 302(a) of the law (43 P. S. § 782(a)) shall be submitted in writing to the Bureau of Employment Security, Department of Labor and Industry, Harrisburg, Pennsylvania 17121.
(b) The request for relief from charges shall contain the following information:]
An employer shall file a request with the Department to be granted relief from benefit charges.
(b) An employer's request for relief from benefit charges must contain the information required by the Department, including the following:
* * * * * [(4) The date of valid application for benefits by the claimant.
(5) The local office number.
(6) The date of financial decision.
(7) The signature of the employer or that of his authorized representative.
(8) The last day of work of the claimant.
(9) The reason for the separation of the claimant from employment.]
(c) In addition to the information required under subsection (b), a request for relief from benefit charges based on a claimant's separation from employment must contain a statement of the facts surrounding the most recent separation of the claimant from the employer requesting relief and the date of the separation.
(d) In addition to the information required under subsection (b), an employer making a request for relief from benefit charges based on continuing part-time work shall include a statement of the facts concerning the part-time employment of the claimant which contains the following information:
(1) The date the claimant was hired.
(2) The number of hours or days of work and the pay available to the claimant before and after the claimant's separation from other employment.
(e) An employer shall file a request for relief from benefit charges with the Department in the same manner that documents shall be filed with the Office of Unemployment Compensation Tax Services (UCTS) under § 63.25 (relating to filing methods). The filing date of the request will be determined in accordance with § 63.25.
(f) Notwithstanding subsection (e), the Department may prescribe additional filing methods that it determines to be advisable or expedient. If the Department prescribes an additional filing method, it will designate the date on which a request is filed by that method.
§ 63.34. [Requests as to voluntary separations or discharge of employe for willful misconduct] (Reserved).
[(a) A request filed under section 302(a)(1) of the law (43 P. S. § 782(a)(1)) shall contain a concise but comprehensive statement of facts surrounding the most recent separation of the claimant and the date of such separation from the employer requesting relief.
(b) If an employer who has applied for relief from charges because of the separation or discharge of an employe subsequently reemploys the employe, the employer shall notify the Bureau of the fact and of the date of rehire within 15 days thereof. The notification shall state the name and social security account number of the claimant and the name and account number of the employer.]
§ 63.35. [Requests as to part-time workers] (Reserved).
[(a) Definitions. The following words and terms, when used in this section, have the following meanings, unless the context clearly indicates otherwise:
Material change—A substantial reduction in wages or in the number of hours or days ordinarily worked by the claimant employed in part-time work.
Part-time work—Work other than normal full-time work of a claimant with a regular base-year employer which is ordinarily performed for less than the total number of hours or days customarily worked in the business, occupation or industry.
(b) Information. A request filed under the provisions of this section shall contain a concise but comprehensive statement of facts concerning the part-time employment of the claimant. The statement shall include the following information:
(1) The date the claimant was hired.
(2) The number of hours or days of work and the pay available to the claimant before and after separation from the full-time job.
(c) Certification. The request shall be certified that the information provided is true and correct. The certification shall be signed by the employer making the request or his authorized representative.
(d) Changes of employment situation. If an employer who has applied for relief under section 302(a)(2) of the Law (43 P. S. § 782(a)(2)) subsequently changes the employment situation of a part-time employe, it shall be the duty of the employer to notify the Bureau of such fact within 15 days. The notification shall state the name and social security account number of the claimant and the name and account number of the employer.]
§ 63.36. Time limits for [filing for] requesting relief from benefit charges.
(a) [Where the last separation is the basis for establishing an application for benefits, a Form UC-44FR (Request for Relief from Charges) shall be filed] If an employer is requesting relief from benefit charges on the basis of a separation that occurs on or before the date the claimant files an application for benefits or on the basis of continuing part-time work, the employer shall file the request with the [Bureau] Department within 15 days after the date of [''Financial Decision'' shown on the face of] the first eligible [Form UC-44F (]Notice of Financial Determination[) as] issued by the [Bureau on the basis of this] Department under the claimant's application for benefits.
(b) [If a claimant returns to work for a base-year employer after establishing a benefit year, that is a 52-week period beginning with the date of the first valid Application for Benefits, and is subsequently separated from employment during the benefit year, any request made by the separating employer for relief from charges must be filed within 30 days from the last day worked] If an employer is requesting relief from benefit charges on the basis of a separation that occurs after the claimant files an application for benefits, the employer shall file the request within 15 days after the date of the Department's earliest notice indicating that the claimant is claiming benefits subsequent to the separation and that the employer may request relief from benefit charges.
(c) The following apply to employer requests for relief from benefit changes:
(1) If an employer requests relief from benefit charges in accordance with subsection (a) and the Department grants relief, relief will begin with the earliest week for which the claimant is eligible for benefits pursuant to the claimant's application for benefits.
(2) If an employer requests relief from benefit charges in accordance with subsection (b) and the Department grants relief, relief will begin with the earliest week for which the claimant is eligible for benefits following the last day worked.
(3) A request for relief from benefit charges not filed within the time limitations prescribed in subsections (a) or (b) [shall be] is effective only with respect to charges resulting from benefits paid for weeks ending [15 or more days subsequent to] on or after the date the late request is filed with the [Bureau] Department.
[(d) A request for relief from charges will be considered as filed with the Bureau on the date the request is postmarked or, if the request is otherwise delivered, on the date such request is received in the central office or in the local or district office of the Bureau.]
§ 63.36a. Duration of relief from benefit charges and notice of changed circumstances.
(a) Subject to the requirements of §§ 63.33 and 63.36 (relating to request for relief from benefit charges; and time limits for requesting relief from benefit charges), relief from benefit charges granted to an employer on the basis of a claimant's separation from employment remains in effect until the claimant returns to work for the employer or until the end of the period for which relief is authorized under section 302(a) of the law (43 P. S. § 782(a)), whichever occurs first.
(b) An employer that is granted relief from benefit charges on the basis of a claimant's separation from employment shall notify the Department within 15 days if the claimant returns to work for that employer. The employer shall include with the notification the claimant's name and Social Security number, the employer's name and account number and the date when reemployment commenced.
(c) An employer that is granted relief from benefit charges on the basis of continuing, part-time work shall notify the Department within 15 days if the employment situation of the claimant changes. The employer shall include with the notification the claimant's name and Social Security number and the employer's name and account number.
READJUSTMENT OF RESERVE ACCOUNT BALANCES § 63.41. Requests.
An employer who elects to have [his] its debit reserve account balance adjusted [to zero under sections 301.1(f) and] under section 302(c) of the [Law] law (43 P. S. § [§ 781.1(f) and] 782(c)) shall submit a request [in writing] for the adjustment to the Department, in the manner prescribed by the Department and containing the information required by the Department.
§ 63.42. Time period for filing and revocability.
(a) [A] An employer shall file a request for adjustment of a debit reserve account balance [to zero shall be filed on or after January 1,] on or after the date of the Contribution Rate Notice for the calendar year immediately following the computation date corresponding to the adjustment, but not later than April 30 of [the] that calendar year [immediately following the computation date for the determination of contribution rates].
(b) The [request may not be revocable] employer may not revoke the request for any cause [after] more than 10 days [from] after the date of filing.
§ 63.43. [Date of filing] (Reserved).
[The date of filing of a request shall be considered as the date on which the request is postmarked. Should the request be delivered in some other way the date of receipt in any field or administrative office of the Bureau shall be considered the date of filing.]
REPORTS TO BE FILED § 63.51. [Form UC-1] Initial and renewed registration.
[Form UC-1, Employer's Initial Statement, shall be filed by each employer, whether or not he is liable for the payment of contributions, for whom any individual has performed services in this Commonwealth subsequent to December 31, 1935. The form shall be filed immediately after services are first performed for the employer.]
(a) Under section 315(a)(1) of the law (43 P. S. § 795(a)(1)), an employer shall register with the Department within 30 days after services are first performed for the employer.
(b) If an employer that has stopped filing reports in accordance with § 63.52(b) (relating to quarterly reports from employers) or has not provided employment for 1 year or longer resumes providing employment, the employer shall file a new registration with the Department within 30 days after it resumes providing employment.
§ 63.52. [Form UC-2] Quarterly reports from employers.
(a) [Form UC-2, Employer's Report for Unemployment Compensation, and Form UC-2A, Employer's Quarterly Report of Wages Paid to Each Employe, shall be filed by each employer liable for the payment of contributions, on or before the last day of the month which immediately follows the end of the calendar quarter for which the reports are filed.
(b) Form UC-2 and Form UC-2A shall be filed for each calendar quarter, whether or not the employer has paid wages during the calendar quarter.
(c) The Bureau may require an employer who has discontinued operation of his organization, trade or business in this Commonwealth to file reports immediately upon discontinuance of an operation.
(d) If the day on which Forms UC-2 and UC-2A are otherwise required to be filed is a Saturday, Sunday or a legal holiday, the reports may be filed on the first subsequent day which is not a Saturday, Sunday or a legal holiday.
(e) The day on which reports are postmarked shall be deemed the day on which they are filed.
(f) An employer who has been required to file Form UC-2 may be relieved of filing the report only upon written application to the Bureau to be so relieved. The application shall certify that he no longer furnishes employment as defined in the Law (43 P. S. § 753). The Bureau may, however, relieve an employer from filing reports upon finding that the employer no longer furnishes employment as defined in the Law (43 P. S. § 753), at any time, on its own motion.]
Required reports. An employer shall file the following reports for each calendar quarter, regardless of whether the employer has paid wages during the calendar quarter:
(1) The periodic report to establish the amount of contributions due, known as the Employer's Report for Unemployment Compensation.
(2) The periodic report showing the amount of wages paid to each employe, known as the Employer's Quarterly Report of Wages Paid to Each Employee.
(b) Termination of reporting. An employer may stop filing reports required under subsection (a) if it certifies in writing that it no longer provides employment as defined in section 4 of the law (43 P. S. § 753) or the Department determines that the employer no longer provides the employment.
(c) Contents of reports. An Employer's Report for Unemployment Compensation must contain the total amount of wages paid during the calendar quarter, the amount of wages paid during the calendar quarter that does not exceed the limitation in section 4(x)(1) of the law, the amount of contributions due, and other information the Department requires. An Employer's Quarterly Report of Wages Paid to Each Employee must contain the following:
(1) The name and Social Security number of each employee to whom wages were paid during the calendar quarter.
(2) The amount of wages paid to each employee.
(3) The number of credit weeks for each employee.
(4) Other information the Department requires.
(d) Due date.
(1) An employer shall file reports required under subsection (a) on or before the last day of the month that immediately follows the end of the calendar quarter for which the reports are filed. If the day on which the reports are required to be filed is a Saturday, Sunday or legal holiday, the employer may file them on the first subsequent day that is not a Saturday, Sunday or legal holiday.
(2) The Department may require an employer that has discontinued operation of its organization, trade or business in this Commonwealth to file the reports required under subsection (a) immediately.
(e) Reporting methods. Except as otherwise prescribed by the Department under subsection (g), for calendar quarters beginning on or after January 1, 2011, an employer shall make the reports required under subsection (a) through an electronic filing system that the Department prescribes.
(f) Filing date. The filing date of a report made under subsection (e) is the receipt date recorded by the electronic filing system.
(g) Additional reporting methods.
(1) The Department may prescribe additional methods for employers to make the reports required under subsection (a). If the Department prescribes an additional method to make a report, it will designate the date on which a report made by that method is filed. The Department may suspend use of one or more of the methods of making reports prescribed in subsection (e) or under this paragraph when it determines, in its discretion, that the method is obsolete, impractical or infrequently used.
(2) The Department may limit a class of employers to one or more methods of making the reports required under subsection (a), or limit a method of making the reports to a class or classes of employers.
(h) Waiver. Upon a showing of good cause, the Department may allow an employer to make the reports required under subsection (a), to file the reports, or both, by a method other than as provided in subsections (e), (f) and (g).
§ 63.58. [Penalties for failure to file] (Reserved).
[The penalty for failure to file reports as provided in section 206 of the Law (43 P. S. § 766) may not apply to the filing of Form UC-2 with respect to any reporting period during which the employer paid no wages subject to contributions.]
§ 63.59. PEO quarterly reports.
(a) Method and content of report. A report required under section 315(a)(4) of the law (43 P. S. § 795(a)(4)) shall be made through the electronic filing system prescribed by the Department for that purpose, and include the information required by that system.
(b) Filing date. The filing date of a report required under section 315(a)(4) of the law is the date indicated on the confirmation page displayed upon completion of the filing process.
§ 63.60. Mass layoff report.
(a) An employer that lays off or separates 50 or more individuals within any 7-day period shall provide the information that the Department requires for processing the individuals' applications and claims for unemployment compensation.
(b) The employer shall file the report required under subsection (a) in accordance with the following.
(1) The employer shall file the report no later than 5 business days prior to the first layoff or separation, unless the Department extends the due date for the report for good cause.
(2) The employer shall file the report in the same manner that documents shall be filed with Office of Unemployment Compensation Tax Services under § 63.25 (relating to filing methods). The filing date of the report will be determined in accordance with § 63.25.
MISCELLANEOUS PROVISIONS § 63.61. [Voluntary contributions to Unemployment Compensation Fund] (Reserved).
[(a) Any employer who wishes to take advantage of the privilege afforded by voluntary contributions to the Unemployment Compensation Fund shall pay his voluntary contribution in strict conformity with section 302(b) of the Law (43 P. S. § 782(b)). The amount shall be included in the computation or recomputation of the rate for any calendar year only if it is paid within 120 days after the beginning of the year.
(b) Irrespective of any action by the Bureau, the employer shall be responsible for determining the amount he wishes to pay and he shall pay that amount, unconditionally, within the 120-day period.
(c) After voluntary contributions are accepted by the Bureau, they will not be refunded or allowed as a credit to pay contributions due on taxable wages.]
§ 63.62. [Assignment of contribution credit] (Reserved).
[(a) Contribution credit which arose as a result of the 1949 and 1951 experience rating amendments to the Law (43 P. S. §§ 781 and 781.1) may be transferred to a successor-in-interest or to any assignee. The credit shall be used solely for the payment of contributions, interest or penalties owing under the Law and may not be refunded.
(b) Request for the assignment of nonrefundable credit shall be made by submitting the request in duplicate and shall contain the essential information required.
(c) Credit may be transferred to more than one assignee, in which case the request shall be submitted in duplicate for each assignee.]
§ 63.63. Agreement to compromise.
(a) [Application] An employer's application for compromise of contributions, interest or penalties under [the provisions of] section 309.1 of the [Law] law (43 P. S. § 789.1) shall be made [to the Bureau on Form UC-168, Application for Agreement to Compromise. The application shall be properly executed under oath, by the employer or his authorized representative, and shall have attached thereto and made a part thereof such additional information as the Bureau may require] in the manner that the Department prescribes, and containing the information that the Department requires.
(b) [All contributions, interest or penalties, other than those for which application for compromise is being made, and all legal costs incurred by the Bureau shall be paid in full before the Bureau will give consideration to an employer's application. The amount offered in compromise shall accompany each application but the Bureau may waive this requirement when the circumstances justify the exception.] An application for compromise is effective only if both of the following occur:
(1) The Department notifies the employer that the application is approved.
(2) The employer pays the contributions, reimbursement, interest, penalties and legal costs that it owes, other than those amounts the Department has agreed to forgo in the compromise, within the time and in the manner that the Department specifies.
§ 63.64. Records to be kept by employer.
(a) Content of records. Each employer, whether or not liable for the payment of contributions, shall keep clear, accurate and complete employment and payroll records. The records [shall include] must contain the following information on each worker, including workers whom the employer considers to be independent contractors, workers whom the employer considers not ''employes'' under the law, and workers covered by an arrangement described in section 4(j)(2.1) of the law (43 P. S. § 753(j)(2.1)):
* * * * * (4) Total remuneration paid for each pay period by type of payment (cash and [cash value of payments in kind] fair market value of noncash remuneration).
* * * * * (7) [Full-time] All scheduled hours and hours worked.
* * * * * (10) Number of credit weeks.
(11) Documentation of payments made to the worker, including bank statements, cancelled checks, copies of cancelled checks, check stubs, and electronic funds transfer records.
(12) If the worker is covered by an arrangement described in section 4(j)(2.1) of the law, the contract between the employer and the other party to the arrangement.
(13) Any contract between the employer and the worker.
(14) If the employer considers the worker to be an independent contractor or otherwise not an ''employee'' under the law, records, documentation and evidence supporting that position.
(15) Federal and State tax returns for the periods when the worker was employed.
(b) Location [and], retention and inspection of records.
(1) [All] The employment and payroll records [and supporting evidence, as well as all other business records such as cash books, journals, ledgers and corporate minutes,] required under subsection (a) shall be retained either at the place of employment or at an established central recordkeeping office for at least 4 years after contributions relating to [such] the records have been paid.
* * * * * (3) [The records shall be open for inspection and transcription by authorized representation of the Bureau] The Department's authorized representatives may inspect, transcribe or photocopy all employment and payroll records required under subsection (a) and all other business records, including, without limitation, cash books, journals, ledgers and corporate minutes at any reasonable time and as often as may be deemed necessary. [They shall be] The employer or entity in possession of the records shall keep the records in [such] a condition that the information required may readily be obtained by representatives of the [Bureau] Department.
(c) Scope. For purposes of this section, the term ''employer'' includes any person for whom services are performed by an individual for remuneration.
§ 63.66. Power of attorney.
(a) Power of attorney. An employer may appoint an agent with full or limited power and authority to act on its behalf with the Department.
(b) Form of power of attorney. An employer's appointment of an agent shall be made in the manner prescribed by the Department and contain the information required by the Department.
Subchapter B. MULTISTATE AGREEMENTS
MISCELLANEOUS § 63.75. [Approval of reciprocal coverage elections] (Reserved).
[The Assistant Director for Tax Operations shall have the authority to approve or disapprove reciprocal coverage elections in accordance with the provisions of this subchapter.]
Subchapter C. NONPROFIT ORGANIZATIONS MAKING PAYMENTS IN LIEU OF CONTRIBUTIONS § 63.91. [Purpose] Elections.
[This subchapter is intended to effectuate those provisions of the law which deal with filing a surety bond or depositing money or securities of equal value with the Department when a nonprofit organization elects to become liable for payments in lieu of contributions.]
(a) Duration. A nonprofit organization electing to make payments in lieu of contributions shall make its election effective for a period of 2, 3 or 4 calendar years. This subsection does not prevent a nonprofit organization from filing one or more successive elections.
(b) Transitional provision. An election that is effective prior to ______ (Editor's Note: The blank refers to the effective date of adoption of this proposed rulemaking.) terminates on the later of the following dates, unless sooner terminated in accordance with the law:
(1) December 31 of the third calendar year following the calendar year in which the election became effective.
(2) December 31 of the calendar year in which this regulation takes effect, if this regulation takes effect from January 1 through June 30, or December 31 of the calendar year immediately following the calendar year in which this regulation takes effect, if this regulation takes effect from July 1 through December 31.
§ 63.93. Filing of surety bond.
Nonprofit organizations subject to [the provisions of] this subchapter electing to file a surety bond shall file with the [local Field Accounting Office of the Bureau] Department a surety bond [equal to 1.0% of the employer's taxable wages paid for subject employment for the most recent four calendar quarters prior to the election to make payments in lieu of contributions or a surety bond in an amount set by the Department, such bond to be executed by an approved bonding company] issued by an insurance company with a certificate of authority to provide such coverage in the Commonwealth. The term of the surety bond must coincide with the period for which the employer elects to make payments in lieu of contributions. The surety bond must secure reimbursement of benefit payments that are based on wages paid during the period of the election, including benefit payments made after the period of the election, together with interest and penalties.
§ 63.94. Filing of security deposit.
(a) In lieu of a surety bond, as prescribed in § 63.93 (relating to filing of surety bond), nonprofit organizations subject to this subchapter may deposit [moneys] money, in [the] a form [of bank-guaranteed checks payable] acceptable to the Department [of Labor and Industry] or securities [of equal present monetary value,] of a kind acceptable to the [Bureau, with the local Field Accounting Office of the Bureau, for transmittal to the Department in Harrisburg] Department. [A written receipt will be given to the employer depositing such moneys or securities. A copy of the receipt will be forwarded to the Bureau Accounting Division in Harrisburg and a copy retained in the local Field Accounting Office. Reference should also be made to §§ 63.95—63.97 (relating to moneys or securities received, securities pledged and return or sale of moneys or securities).]
(b) If a nonprofit organization deposits money or securities in connection with an election to make payments in lieu of contributions, it shall file a surety bond or deposit new collateral in connection with any subsequent election.
(c) Money or securities deposited with the Department in connection with an election to make payments in lieu of contributions secures reimbursement of both of the following, together with interest and penalties:
(1) Benefit payments that are based on wages paid during the period of the election, including benefit payments made after the period of the election.
(2) If the money or securities constitute new collateral in accordance with subsection (b), benefit payments that are based on wages paid during the period of the previous election, including benefit payments made after the period of the previous election.
§ 63.95. [Moneys] Money or securities received.
(a) [Moneys] Money received. The Department will deposit all [moneys] money received with the State Treasurer, Commonwealth of Pennsylvania. Any interest [thereon] paid by the State Treasurer on money received from an employer shall accrue to the employer, subject to § 63.97 (relating to return or sale of money or securities).
(b) Securities received. Securities received will be deposited with the State Treasurer of the Commonwealth. The securities shall be assigned to the Department and be negotiable by the Department at any time. Interest or dividends accruing thereon shall be the property of the owner of the securities, subject to § 63.97.
§ 63.96a. Conversion to contributory status.
(a) If an employer that elects to make payments in lieu of contributions fails to provide a surety bond, money or securities in accordance with section 1106(d) of the law (43 P. S. § 906(d)) and this subchapter, the employer's election is void.
(b) If an employer that elects to make payments in lieu of contributions provides a surety bond that ceases to be effective during the period of the election, and the employer does not provide a replacement bond for the remainder of the period of the election within 30 days after the Department requests the replacement bond, the Department will terminate the election. The Department will specify the effective date of the termination, which may be retroactive to the first day of the calendar quarter in which the bond ceases to be effective. A termination of an election under this subsection is not governed under section 1107(b) of the law (43 P. S. § 907(b)).
(c) If an employer who elects to make payments in lieu of contributions subsequently becomes a contributory employer, and the employer owes reimbursement for benefit payments, or interest or penalties, the unpaid reimbursement, interest or penalties constitute unpaid contributions, interest or penalties for purposes of section 301(a)(2) of the law (43 P. S. § 781(a)(2)). The date when benefits are paid is used to determine if the unpaid reimbursement, interest or penalties correspond to the period through the second calendar quarter of the preceding calendar year.
(d) If an employer who elects to make payments in lieu of contributions subsequently becomes a contributory employer, the employer remains liable to reimburse the Department for benefit payments made after the period of the election that are based on wages paid during the period of the election, in addition to the employer's liability for contributions on wages paid after the period of the election.
§ 63.97. Return or sale of [moneys] money or securities.
Any deposit of [moneys] money or securities received will be held until the organization's liability for payments is terminated. Upon termination of liability the deposit will be returned, minus any amount, including interest and penalty, due the Department. The Department is authorized to sell securities deposited to satisfy any amount due, in which event any interest and increase in value accruing on the securities will be applied to the amount due to the Department. [All securities pledged to the Department but held in escrow will be released through written advice by the Department upon termination of liability as a reimbursing nonprofit employer, but only if all amounts due have been paid.]
§ 63.99. Assignment of rate of contribution.
[A 2% rate will be assigned to employers who elect the reimbursement method of payment and subsequently choose to convert to contributory status. The employer will be treated as a ''new or newly covered'' employer during the period in which he was in reimbursement status, and this period will not be taken into account for any of the purposes of experience rating. The entry rate of 2% is available only on the occasion of the first conversion from reimbursement to contributory status. Thereafter, the rate of contribution may not be less than the standard rate subject to adjustment under section 301.1 of the Law (43 P. S. § 801.1).]
If an employer who elects to make payments in lieu of contributions subsequently becomes a contributory employer, the employer's rate of contribution shall be determined in accordance with the following:
(1) Wages paid by the employer during the period of the election, employee contributions paid on those wages, and benefit payments based on those wages are not taken into account for purposes of experience rating.
(2) If the employer was a contributory employer before the period of the election and the employer's reserve account has not been terminated under section 302(d) of the law (43 P. S. § 782(d)), the employer is assigned a rate of contribution in accordance with section 301(a)(1) or 301.1 of the law (43 P. S. § 781(a)(1) and § 781.1)), whichever is applicable.
(3) If the employer was a contributory employer before the period of the election and the employer's reserve account has been terminated under section 302(d) of the law, or the employer was not a contributory employer before the period of the election, the employer is assigned a rate of contribution in accordance with section 301(a)(3) or (4) of the law, whichever is applicable, until the employer is no longer subject to those provisions.
(4) A rate of contribution determined in accordance with paragraph (2) or (3) is subject to any adjustments required under the rate provisions of the law.
(Editor's Note: The following subchapter is new and printed in regular type to enhance readability.)
Subchapter D. PAYMENT BY ELECTRONIC TRANSFER Sec.
63.111. Definitions. 63.112. Electronic transfer requirement, waiver and penalty. 63.113. Voluntary participation. 63.114. Date of payment. 63.115. Miscellaneous provisions. § 63.111. Definitions.
The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise:
ACH—Automated clearing house—A Federal reserve bank, or an organization established by agreement with the National Automated Clearinghouse Association, which operates as a clearing house for transmitting or receiving entries between financial institutions and financial institution accounts, and which authorizes an electronic transfer of funds between the financial institutions or financial institution accounts.
ACH credit—A transaction in which the payer, through its own financial institution, originates an ACH transaction crediting the Department's financial institution account and debiting its own financial institution account for the amount of the payment to the Department.
ACH debit—A transaction in which the Department, through its designated depository financial institution, originates an ACH transaction debiting the payer's financial institution account and crediting the Department's financial institution account for the amount of the payment to the Department.
Card processor—An entity which provides credit card and debit card payment services on behalf of the Department.
Credit card—A device or instrument which entitles the holder to obtain money, goods, services or anything of value on credit and is accepted by the card processor.
Debit card—A device or instrument which entitles the holder to obtain and transfer money from an account or accounts with a financial institution and is accepted by the card processor.
Electronic transfer—A transfer of funds by ACH credit, ACH debit, credit card or debit card.
§ 63.112. Electronic transfer requirement, waiver and penalty.
(a) An employer shall make payment for a calendar quarter by electronic transfer if the employer's liability for contributions, interest and penalty for that calendar quarter equals or exceeds $5,000 and continue to pay by electronic transfer thereafter regardless of whether the liability threshold is reached or exceeded for any subsequent quarter.
(b) An employer that has elected to make payments in lieu of contributions shall make payment for a billing period by electronic transfer if the employer's liability for reimbursement, interest and penalties for that billing period equals or exceeds $5,000 and continue to pay by electronic transfer thereafter regardless of whether the liability threshold is reached or exceeded for any subsequent billing period.
(c) Upon a showing of good cause, the Department may exempt an employer from the electronic transfer payment requirements of this subchapter.
(d) If an employer subject to the electronic transfer payment requirements of this subchapter makes payment other than as required, the Department will charge a penalty of 10% of the payment, up to a maximum of $500 with a minimum of $25 per occurrence. The sums will be collectible in the manner provided in sections 308.1, 308.2, 308.3 and 309 of the law.
§ 63.113. Voluntary participation.
An employer that is not required to make payments by electronic transfer, and an individual liable for an overpayment of unemployment compensation benefits, may make payments by electronic transfer in accordance with this subchapter.
§ 63.114. Date of payment.
(a) A payment by ACH debit is made on the earliest date when the following apply:
(1) The Department may exercise the payer's authorization to debit its financial institution account.
(2) The information necessary to process the payment has been received by the Department in the manner prescribed by the Department.
(b) A payment by credit card or debit card is made on the date when the information necessary to effectuate the payment is given to the card processor in a manner prescribed by the card processor.
(c) A payment by ACH credit is made on the date when the payment is received in the Department's financial institution account.
(d) If the date when a payment is made by electronic transfer, as determined under subsections (a)—(c), is delayed as a result of a human error or a technological failure by the Department, the Department's agents or the banking system that is beyond the employer's control, the Department will redetermine the date of payment as if the error or failure had not occurred.
§ 63.115. Miscellaneous provisions.
(a) Information necessary to effectuate a payment by ACH debit includes the name of the financial institution, the financial institution's routing number and the account number of the account to be debited. Information necessary to effectuate a payment by credit card or debit card shall be determined by the card processor.
(b) If a payment is made by electronic transfer and subsequently the transfer of funds to the Department is rescinded, the liability to which the payment was applied will be reinstated as if the payment was not made.
(c) The Department will provide one or more methods for payers to verify that payments by electronic transfer have been received by the Department.
(d) The Department may provide refunds by ACH credit.
[Pa.B. Doc. No. 10-1682. Filed for public inspection September 10, 2010, 9:00 a.m.]
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