PENNSYLVANIA (WHTM) — Dozens of Pennsylvania Chamber of Commerce leaders are urging the Pennsylvania General Assembly to support a bill that would exempt Pennsylvania employers from facing potential a tax increase.
According to the Department of Labor and Industry, there are an estimated 2,700 Pennsylvania employers who will have their Unemployment Compensation (UC) tax rates increased, if S.B. 1083 is not passed.
According to a letter sent to state lawmakers, this increased UC tax rate will currently be applied based on two factors:
- Businesses that were compelled into a prolonged-pandemic related shutdowns
- Businesses that had previously earned a lower experience-based UC tax rate by avoiding layoffs over the years.
According to a press release by the Pennsylvania Chamber of Business & Industry, S.B. 1083 would target these employers, and temporarily exempt them from receiving a UC tax rate increase.
“The pandemic created many challenges for employers, and being able to keep their doors open and maintain their staff was one of the greatest hurdles they faced,” said Pennsylvania Chamber President and CEO Luke Bernstein. “Small business owners who have already withstood so much cannot afford the added cost of a tax hike based on circumstances that were outside of their control.”
Under the current Pennsylvania law, if an employer does not report payroll in just one of the past three years, they lose their currently assessed UC tax rate, and in turn, are forced to revert back to the higher, default UC tax rate, according to the chamber’s letter.
The last action on this bill was on Sept. 21, 2022, and this year’s legislative session ends on November 30, 2022.