The Office of UC Tax Services plans to mail the Pennsylvania UC Contribution Rate Notice, Form UC-657, for calendar year 2011, on Dec. 31, 2010.
Your contribution rate will likely increase due to the following solvency measures which will be in effect for 2011: Employer Taxes 5.8 percent (.058) surcharge on employer contributions. The surcharge adjustment is computed by multiplying your basic rate by the 5.8 percent surcharge. This tax does not apply to reimbursable employers. 0.65 percent (.0065) additional employer contribution tax. The additional contribution tax is added to your tax rate as adjusted by the surcharge. This tax is not applicable to newly liable and reimbursable employers. 0.44 percent (.0044) interest factor tax.
PA has provided an excellent example of how the 2011 contribution rate will be computed (shown below):
| Example: | ||||||
| Basic Rate Surcharge | Additional Contributions |
Interest Factor |
2011 Total Contribution Rate | |||
| .0210 + (.0210 x .058 = .001218) | + | .0065 | + | .0044 | = | .033118 |
Employee withholding contributions are submitted with each UC-2/2A quarterly report. Employee withholding applies to the total wages paid in 2011. It is not limited to the $8,000 taxable wage base for employer contributions. Failure to withhold or remit this employee tax could result in interest charges and may affect your contribution rate for subsequent years. The interest rate for UC contributions that are delinquent during 2011 is 9 percent per year.
Upon receipt of the 2011 contribution rate notice, be sure to immediately forward a copy of the notice to your payroll provider to ensure that the proper tax rate is used in 2011.
If you have any questions concerning th 2011 employer contribution rate, you can contact the PA UC Tax Information Line at (866)-403-6163 or (717) 787-7679, weekdays from 7 a.m. until 5 p.m. If you would like to read the PA announcement on it website, click here.
