1Amending the act of December 5, 1936 (2nd Sp.Sess., 1937 
2P.L.2897, No.1), entitled "An act establishing a system of 
3unemployment compensation to be administered by the 
4Department of Labor and Industry and its existing and newly 
5created agencies with personnel (with certain exceptions) 
6selected on a civil service basis; requiring employers to 
7keep records and make reports, and certain employers to pay 
8contributions based on payrolls to provide moneys for the 
9payment of compensation to certain unemployed persons; 
10providing procedure and administrative details for the 
11determination, payment and collection of such contributions 
12and the payment of such compensation; providing for 
13cooperation with the Federal Government and its agencies; 
14creating certain special funds in the custody of the State 
15Treasurer; and prescribing penalties," further providing for
16contributions by employees and for trigger rate
17redeterminations; and providing for regular contributions by
18employees.

19The General Assembly of the Commonwealth of Pennsylvania
20hereby enacts as follows:

21Section 1. Sections 301.4 and 301.8(b) of the act of 
22December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as 
23the Unemployment Compensation Law, amended June 12, 2012
24(P.L.577, No.60), are amended to read:

25Section 301.4. Contributions by Employes.--(a)

1Notwithstanding any other provision of this act, each employe
2shall pay contributions at a rate of zero per centum (0.0%) for
3calendar year 1989 and at a rate as set forth in section 301.7
4for each calendar year thereafter of all wages paid for
5"employment" as defined by the act without regard to the
6limitation specified in section 4(x)(1) of this act.

7(b) Each employer subject to this act shall be responsible
8for withholding and shall withhold, in trust, such contributions
9from the wages of his employes at the time such wages are paid,
10and shall report and transmit such deductions to the department
11for deposit into the Unemployment Compensation Fund [and], the 
12Reemployment Fund and the Administration Fund pursuant to the 
13allocation prescribed in subsection (e), in accordance with
14rules and procedures established by the department.

15(c) Any employer who is an individual, or any officer or
16agent of any employer, who violates the trust provision of this
17section, fails to withhold, hold in trust or fails to transmit
18to the department all contributions withheld from the wages of
19his employes in accordance with the rules and procedure
20established by the department shall be subject to the provisions
21of clause (2) of subsection (a) of section 301 and sections 308,
22308.1, 308.2, 308.3 and 309 of this act.

23(d) This section shall not be deemed to affect or impair the
24operation of any State statute or ordinance or resolution of a
25political subdivision which levies or collects any wage tax or
26similar tax. Contributions made pursuant to this section are not
27intended to reduce or otherwise affect any tax on wages or
28similar tax.

29(e) Contributions paid under this section shall be
30allocated by the department between the Unemployment

1Compensation Fund [and], the Reemployment Fund and the 
2Administration Fund as follows:

3[(1) Ninety-five per centum (95%) of the contributions on
4wages paid from January 1, 2013, through September 30, 2017,
5shall be deposited into the Unemployment Compensation Fund and
6five per centum (5%) of such contributions shall be deposited
7into the Reemployment Fund to the extent the contributions are
8paid on or before December 31, 2017.

9(2) One hundred per centum (100%) of the contributions on
10wages paid from January 1, 2013, through September 30, 2017,
11shall be deposited into the Unemployment Compensation Fund to
12the extent the contributions are paid on or after January 1,
132018.

14(3) One hundred per centum (100%) of the contributions on
15wages paid on or after October 1, 2017, shall be deposited into
16the Unemployment Compensation Fund.]

17(1) Ninety-five per centum (95%) of the contributions shall
18be deposited into the Unemployment Compensation Fund.

19(2) Five per centum (5%) of such contributions shall be
20deposited as follows:

21(i) Not less than ten million dollars ($10,000,000) shall
22annually be deposited into the Administration Fund with the
23remaining contributions deposited into the Reemployment Fund to
24the extent that contributions are paid on or before December 31,
252017.

26(ii) Commencing January 1, 2018, the contributions shall be
27deposited into the Administration Fund to the extent that such
28contributions are paid on or after January 1, 2018.

29Section 301.8. Trigger Rate Redeterminations.--* * *

30(b) (1) For calendar years 2013 through the year determined
 

1under paragraph (4), if the trigger percentage as of July 1 of 
2the preceding calendar year is less than two hundred fifty per 
3centum (250%), the rates determined under paragraph (2) shall 
4apply. For calendar years following the year determined under 
5paragraph (4), if the trigger percentage as of July 1 of the 
6preceding calendar year is less than two hundred fifty per 
7centum (250%), the rates determined under paragraph (3) shall 
8apply.

9(2) (i) The secretary shall redetermine the rates such that
10the surcharge assessed under section 301.5 shall yield one
11hundred million dollars ($100,000,000), the additional
12contribution under section 301.2 shall yield two hundred twenty-
13five million dollars ($225,000,000), the employe tax under
14section 301.4 shall yield one hundred sixty-six million six
15hundred sixty-six thousand six hundred sixty-six dollars
16($166,666,666), and the benefit reduction under section 404(e)
17(4) shall yield fifty-two million dollars ($52,000,000).

18(ii) For calendar years 2018 through the year determined
19under paragraph (4), notwithstanding the dollar limitation in
20subparagraph (i), the employe tax rate applicable under section
21301.4 and redetermined under this paragraph shall not be set at
22a rate less than eight-hundredths of one per centum (0.08%).

23(3) (i) The secretary shall redetermine the rates such that
24the surcharge assessed under section 301.5 shall yield one
25hundred thirty-eight million dollars ($138,000,000), the
26additional contribution under section 301.2 shall yield the sum
27of three hundred ten million dollars ($310,000,000) plus the
28amount determined under paragraph (5), the employe tax under
29section 301.4 shall yield two hundred thirty million dollars
30($230,000,000), and the benefit reduction under section 404(e)

1(4) shall yield seventy-two million dollars ($72,000,000).

2(ii) Notwithstanding the dollar limitation in subparagraph
3(i), the employe tax rate applicable under section 301.4 and
4redetermined under this paragraph shall not be set at a rate
5less than eight-hundredths of one per centum (0.08%).

6(4) The calendar year determined under this paragraph shall
7be the earliest calendar year subsequent to 2012 on December 31
8of which all of the following apply:

9(i) There is no unpaid balance of Federal advances under
10Title XII of the Social Security Act (58 Stat. 790, 42 U.S.C. §
111321, et seq.) or interest thereon.

12(ii) There are no outstanding bond obligations under Article
13XIV of this act and no bond administrative expenses under
14Article XIV of this act and no such obligations and no such
15expenses will be due in the following year.

16(5) The amount determined under this paragraph shall be the
17sum of:

18(i) twenty per centum (20%) of the amount paid from the
19Unemployment Compensation Fund pursuant to section 1407(c)
20during the sixty (60) consecutive calendar months ending on June
2130 of the year in which the redetermination occurs, plus

22(ii) twenty per centum (20%) of that portion of the amount
23paid from the Unemployment Compensation Fund pursuant to section
241407(c) during the immediately preceding sixty (60) consecutive
25calendar months that is not recovered by additional
26contributions paid for calendar years through the calendar year
27in which the redetermination occurs.

28* * *

29Section 2. The act is amended by adding a section to read:

30Section 301.9. Regular Contributions by Employes.--(a)

1Notwithstanding any other provision of this act, for every
2calendar year in which the employe tax under section 301.4 is
3not effective, each employe shall contribute eight-hundredths of
4one percent (0.08%) of all wages paid for employment without
5regard to the limitation specified in section 4(x)(1).

6(b) Each employer subject to this act shall be responsible
7for withholding and shall withhold, in trust, such contributions
8from the wages of his employes at the time such wages are paid,
9and shall report and transmit such deductions to the department
10for deposit into the Unemployment Compensation Fund and the
11Administration Fund pursuant to the allocation prescribed in
12subsection (e), in accordance with rules and procedures
13established by the department.

14(c) Any employer who is an individual, or any officer or
15agent of any employer, who violates the trust provision of this
16section, fails to withhold, hold in trust or fails to transmit
17to the department all contributions withheld from the wages of
18an employer's employes in accordance with the rules and
19procedure established by the department shall be subject to the
20provisions of sections 301(a)(2), 308, 308.1, 308.2, 308.3 and
21309.

22(d) This section shall not be deemed to affect or impair the
23operation of any State statute or ordinance or resolution of a
24political subdivision which levies or collects any wage tax or
25similar tax. Contributions made pursuant to this section are not
26intended to reduce or otherwise affect any tax on wages or
27similar tax.

28(e) Contributions paid under this section shall be allocated
29by the department between the Unemployment Compensation Fund and
30the Administration Fund as follows:

1(1) Sixty per centum (60%) of the contributions shall be
2deposited into the Unemployment Compensation Fund.

3(2) Forty per centum (40%) of such contributions shall be
4deposited into the Administration Fund. This money shall be
5prioritized for costs to improve the efficiency of the
6unemployment compensation service center system, including costs
7of increased staffing, training for temporary or intermittent
8positions to ensure a ready work force as needed, and necessary
9upgrades to telephone and electronic service center and claims
10filing systems.

11Section 3. This act applies as follows:

12(1) The amendment of section 301.4 of the act shall
13apply to contributions on wages paid on or after January 1,
142013.

15(2) The amendment of section 301.8(b) of the act shall
16apply to the redetermination of employee contribution rates
17to occur under section 301.8 beginning in 2017 and each fifth
18year thereafter for purposes of contribution rates for
19calendar year 2018 and thereafter, respectively.

20Section 4. This act shall take effect immediately.