Bill Text: PA HB2733 | 2011-2012 | Regular Session | Introduced

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Bill Title: Further providing for contributions by employees and for trigger rate redeterminations; and providing for regular contributions by employees.

Spectrum: Strong Partisan Bill (Democrat 19-1)

Status: (Introduced - Dead) 2012-11-13 - Referred to LABOR AND INDUSTRY [HB2733 Detail]

Download: Pennsylvania-2011-HB2733-Introduced.html

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PRINTER'S NO. 4313
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2733 Session of2012
INTRODUCED BY W. KELLER, TAYLOR, BRENNAN, BROWNLEE, COHEN, DePASQUALE, FRANKEL, GEORGE, HANNA, HARKINS, JAMES, MANN, McGEEHAN, M. O'BRIEN, PARKER, PASHINSKI, SABATINA, THOMAS AND READSHAW, NOVEMBER 13, 2012
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, NOVEMBER 13, 2012
AN ACT
Amending the act of December 5, 1936 (2nd Sp.Sess., 1937
P.L.2897, No.1), entitled "An act establishing a system of
unemployment compensation to be administered by the
Department of Labor and Industry and its existing and newly
created agencies with personnel (with certain exceptions)
selected on a civil service basis; requiring employers to
keep records and make reports, and certain employers to pay
contributions based on payrolls to provide moneys for the
payment of compensation to certain unemployed persons;
providing procedure and administrative details for the
determination, payment and collection of such contributions
and the payment of such compensation; providing for
cooperation with the Federal Government and its agencies;
creating certain special funds in the custody of the State
Treasurer; and prescribing penalties," further providing for
contributions by employees and for trigger rate
redeterminations; and providing for regular contributions by
employees.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 301.4 and 301.8(b) of the act of
December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as
the Unemployment Compensation Law, amended June 12, 2012
(P.L.577, No.60), are amended to read:
Section 301.4. Contributions by Employes.--(a)
Notwithstanding any other provision of this act, each employe
shall pay contributions at a rate of zero per centum (0.0%) for
calendar year 1989 and at a rate as set forth in section 301.7
for each calendar year thereafter of all wages paid for
"employment" as defined by the act without regard to the
limitation specified in section 4(x)(1) of this act.
(b) Each employer subject to this act shall be responsible
for withholding and shall withhold, in trust, such contributions
from the wages of his employes at the time such wages are paid,
and shall report and transmit such deductions to the department
for deposit into the Unemployment Compensation Fund [and], the
Reemployment Fund and the Administration Fund pursuant to the
allocation prescribed in subsection (e), in accordance with
rules and procedures established by the department.
(c) Any employer who is an individual, or any officer or
agent of any employer, who violates the trust provision of this
section, fails to withhold, hold in trust or fails to transmit
to the department all contributions withheld from the wages of
his employes in accordance with the rules and procedure
established by the department shall be subject to the provisions
of clause (2) of subsection (a) of section 301 and sections 308,
308.1, 308.2, 308.3 and 309 of this act.
(d) This section shall not be deemed to affect or impair the
operation of any State statute or ordinance or resolution of a
political subdivision which levies or collects any wage tax or
similar tax. Contributions made pursuant to this section are not
intended to reduce or otherwise affect any tax on wages or
similar tax.
(e) Contributions paid under this section shall be
allocated by the department between the Unemployment
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Compensation Fund [and], the Reemployment Fund and the
Administration Fund as follows:
[(1) Ninety-five per centum (95%) of the contributions on
wages paid from January 1, 2013, through September 30, 2017,
shall be deposited into the Unemployment Compensation Fund and
five per centum (5%) of such contributions shall be deposited
into the Reemployment Fund to the extent the contributions are
paid on or before December 31, 2017.
(2) One hundred per centum (100%) of the contributions on
wages paid from January 1, 2013, through September 30, 2017,
shall be deposited into the Unemployment Compensation Fund to
the extent the contributions are paid on or after January 1,
2018.
(3) One hundred per centum (100%) of the contributions on
wages paid on or after October 1, 2017, shall be deposited into
the Unemployment Compensation Fund.]
(1) Ninety-five per centum (95%) of the contributions shall
be deposited into the Unemployment Compensation Fund.
(2) Five per centum (5%) of such contributions shall be
deposited as follows:
(i) Not less than five million dollars ($5,000,000) shall
annually be deposited into the Administration Fund with the
remaining contributions deposited into the Reemployment Fund to
the extent that contributions are paid on or before December 31,
2017.
(ii) Commencing January 1, 2018, the contributions shall be
deposited into the Administration Fund to the extent that such
contributions are paid on or after January 1, 2018.
Section 301.8. Trigger Rate Redeterminations.--* * *
(b) (1) For calendar years 2013 through the year determined
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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) (i) The secretary shall redetermine the rates such that
the surcharge assessed under section 301.5 shall yield one
hundred million dollars ($100,000,000), the additional
contribution under section 301.2 shall yield two hundred twenty-
five million dollars ($225,000,000), the employe tax under
section 301.4 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).
(ii) For calendar years 2018 through the year determined
under paragraph (4), notwithstanding the dollar limitation in
subparagraph (i), the employe tax rate applicable under section
301.4 and redetermined under this paragraph shall not be set at
a rate less than eight-hundredths of one per centum (0.08%).
(3) (i) 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)
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(4) shall yield seventy-two million dollars ($72,000,000).
(ii) Notwithstanding the dollar limitation in subparagraph
(i), the employe tax rate applicable under section 301.4 and
redetermined under this paragraph shall not be set at a rate
less than eight-hundredths of one per centum (0.08%).
(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 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)
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.
* * *
Section 2. The act is amended by adding a section to read:
Section 301.9. Regular Contributions by Employes.--(a)
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Notwithstanding any other provision of this act, for every
calendar year in which the employe tax under section 301.4 is
not effective, each employe shall contribute eight-hundredths of
one percent (0.08%) of all wages paid for employment without
regard to the limitation specified in section 4(x)(1).
(b) Each employer subject to this act shall be responsible
for withholding and shall withhold, in trust, such contributions
from the wages of his employes at the time such wages are paid,
and shall report and transmit such deductions to the department
for deposit into the Unemployment Compensation Fund and the
Administration Fund pursuant to the allocation prescribed in
subsection (e), in accordance with rules and procedures
established by the department.
(c) Any employer who is an individual, or any officer or
agent of any employer, who violates the trust provision of this
section, fails to withhold, hold in trust or fails to transmit
to the department all contributions withheld from the wages of
an employer's employes in accordance with the rules and
procedure established by the department shall be subject to the
provisions of sections 301(a)(2), 308, 308.1, 308.2, 308.3 and
309.
(d) This section shall not be deemed to affect or impair the
operation of any State statute or ordinance or resolution of a
political subdivision which levies or collects any wage tax or
similar tax. Contributions made pursuant to this section are not
intended to reduce or otherwise affect any tax on wages or
similar tax.
(e) Contributions paid under this section shall be allocated
by the department between the Unemployment Compensation Fund and
the Administration Fund as follows:
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(1) Sixty per centum (60%) of the contributions shall be
deposited into the Unemployment Compensation Fund.
(2) Forty per centum (40%) of such contributions shall be
deposited into the Administration Fund. This money shall be
prioritized for costs to improve the efficiency of the
unemployment compensation service center system, including costs
of increased staffing, training for temporary or intermittent
positions to ensure a ready work force as needed, and necessary
upgrades to telephone and electronic service center and claims
filing systems.
Section 3. This act applies as follows:
(1) The amendment of section 301.4 of the act shall apply to
contributions on wages paid on or after January 1, 2013.
(2) The amendment of section 301.8(b) of the act shall apply
to the redetermination of employee contribution rates to occur
under section 301.8 beginning in 2017 and each fifth year
thereafter for purposes of contribution rates for calendar year
2018 and thereafter, respectively.
Section 4. This act shall take effect immediately.
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