03 April 2020

Pennsylvania employer accounts will not be charged for UI benefits due to COVID-19; employers are prohibited from firing employees affected by COVID-19 orders

According to the Pennsylvania Office of Unemployment Compensation, contributory employers' accounts will not be charged for unemployment insurance (UI) benefits received by workers affected by COVID-19. (Employer UC & COVID-19 frequently asked questions.)

Following is the FAQ that pertains to employer noncharge for COVID-19:

Q. Will my UC tax rate increase if my employees file for benefits?

A. No, contributory businesses [that] are temporarily closed due to COVID-19 will be granted Relief From Charges, and your tax rate will not be increased because of COVID-19-related claims.

Nonprofit companies and government entities that have elected to reimburse the Office will be charged with COVID-19 benefits as normal. However, Pennsylvania law provides reimbursing employers an annual opportunity to request noncharge of UI benefits under certain conditions, including unemployment caused by a disaster. For more information, go here.

The Office urges workers unemployed due to COVID-19 to first use any paid sick leave or paid time off, whether provided by their employer or under the federal Families First Coronavirus Response Act, then file for state UI benefits. Individuals unemployed due to COVID-19 are not required to serve a one-week waiting period before collecting UI benefits or to register and actively search for work each week that they receive benefits. See the Office's frequently asked questions for claimants for more information.

See the Office's website for more information regarding the Department's response to COVID-19.

Law prohibits employers from firing workers affected by COVID-19

Under recently enacted legislation (HB 2362) employers are prohibited from terminating, depriving, threatening or otherwise coercing a worker with respect to the employment, seniority position or employee benefits as the result of the worker's compliance with an order to isolate or quarantine. Violating employers may be penalized by the state or sued by the employee.

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)
   • Kristie Lowery (kristie.lowery@ey.com)
   • Peter Berard (Peter.berard@ey.com)

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ATTACHMENT

EY Payroll News Flash

Document ID: 2020-0857