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) 
26Notwithstanding any other provision of this act, each employe

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

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 
11Reemployment Fund and the Administration Fund pursuant to the 
12allocation prescribed in subsection (e), in accordance with
13rules and procedures established 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
18his employes in accordance with the rules and procedure
19established by the department shall be subject to the provisions
20of clause (2) of subsection (a) of section 301 and sections 308,
21308.1, 308.2, 308.3 and 309 of this act.

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 
29allocated by the department between the Unemployment
30Compensation Fund [and], the Reemployment Fund and the 

1Administration Fund as follows:

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

8(2)  One hundred per centum (100%) of the contributions on
9wages paid from January 1, 2013, through September 30, 2017,
10shall be deposited into the Unemployment Compensation Fund to
11the extent the contributions are paid on or after January 1,
122018.

13(3)  One hundred per centum (100%) of the contributions on
14wages paid on or after October 1, 2017, shall be deposited into
15the Unemployment Compensation Fund.]

16(1)  Ninety-five per centum (95%) of the contributions shall
17be deposited into the Unemployment Compensation Fund.

18(2)  Five per centum (5%) of such contributions shall be
19deposited as follows:

20(i)  Not less than ten million dollars ($10,000,000) shall
21annually be deposited into the Administration Fund with the
22remaining contributions deposited into the Reemployment Fund to
23the extent that contributions are paid on or before December 31,
242017.

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

28Section 301.8.  Trigger Rate Redeterminations.--* * *

29(b)  (1)  For calendar years 2013 through the year determined 
30under paragraph (4), if the trigger percentage as of July 1 of 

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

8(2)  (i)  The secretary shall redetermine the rates such that
9the surcharge assessed under section 301.5 shall yield one
10hundred million dollars ($100,000,000), the additional
11contribution under section 301.2 shall yield two hundred twenty-
12five million dollars ($225,000,000), the employe tax under
13section 301.4 shall yield one hundred sixty-six million six
14hundred sixty-six thousand six hundred sixty-six dollars
15($166,666,666), and the benefit reduction under section 404(e)
16(4) shall yield fifty-two million dollars ($52,000,000).

17(ii)  For calendar years 2018 through the year determined
18under paragraph (4), notwithstanding the dollar limitation in
19subparagraph (i), the employe tax rate applicable under section
20301.4 and redetermined under this paragraph shall not be set at
21a rate less than eight-hundredths of one per centum (0.08%).

22(3)  (i)  The secretary shall redetermine the rates such that
23the surcharge assessed under section 301.5 shall yield one
24hundred thirty-eight million dollars ($138,000,000), the
25additional contribution under section 301.2 shall yield the sum
26of three hundred ten million dollars ($310,000,000) plus the
27amount determined under paragraph (5), the employe tax under
28section 301.4 shall yield two hundred thirty million dollars
29($230,000,000), and the benefit reduction under section 404(e)
30(4) shall yield seventy-two million dollars ($72,000,000).

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

5(4)  The calendar year determined under this paragraph shall
6be the earliest calendar year subsequent to 2012 on December 31
7of which all of the following apply:

8(i)  There is no unpaid balance of Federal advances under
9Title XII of the Social Security Act (58 Stat. 790, 42 U.S.C. §
101321, et seq.) or interest thereon.

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

15(5)  The amount determined under this paragraph shall be the
16sum of:

17(i)  twenty per centum (20%) of the amount paid from the
18Unemployment Compensation Fund pursuant to section 1407(c)
19during the sixty (60) consecutive calendar months ending on June
2030 of the year in which the redetermination occurs, plus

21(ii)  twenty per centum (20%) of that portion of the amount
22paid from the Unemployment Compensation Fund pursuant to section
231407(c) during the immediately preceding sixty (60) consecutive
24calendar months that is not recovered by additional
25contributions paid for calendar years through the calendar year
26in which the redetermination occurs.

27* * *

28Section 2.  The act is amended by adding a section to read:

29Section 301.9.  Regular Contributions by Employes.--(a) 
30Notwithstanding any other provision of this act, for every

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

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

13(c)  Any employer who is an individual, or any officer or
14agent of any employer, who violates the trust provision of this
15section, fails to withhold, hold in trust or fails to transmit
16to the department all contributions withheld from the wages of
17an employer's employes in accordance with the rules and
18procedure established by the department shall be subject to the
19provisions of sections 301(a)(2), 308, 308.1, 308.2, 308.3 and
20309.

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

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

30(1)  Sixty per centum (60%) of the contributions shall be

1deposited into the Unemployment Compensation Fund.

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

10Section 3.  This act applies as follows:

11(1)  The amendment of section 301.4 of the act shall
12apply to contributions on wages paid on or after January 1,
132013.

14(2)  The amendment of section 301.8(b) of the act shall
15apply to the redetermination of employee contribution rates
16to occur under section 301.8 beginning in 2017 and each fifth
17year thereafter for purposes of contribution rates for
18calendar year 2018 and thereafter, respectively.

19Section 4.  This act shall take effect immediately.