Pa. Businesses to Get Tax Relief From Hurricane Disaster-Related Unemployment Comp Costs

Pennsylvania Secretary of Labor & Industry Stephen Schmerin announced that employers will be able to request relief from charges to their unemployment compensation accounts for costs related to tropical depressions and hurricanes Frances and Ivan.

“Businesses and other employers who saw their facilities destroyed or extensively damaged by these disasters have already much to overcome in resuming their operations and calling people back to work,” Schmerin said. “They should not have to face higher UC taxes in future years because of benefit costs directly related to the September storms and flooding, so we are granting them tax relief for disaster-related unemployment benefits.”

Normally, unemployment costs for UC benefits paid to employees who lose work are charged to an employer’s account and included in determining the next year’s state UC tax rate.

Under the Pennsylvania UC law, relief from UC charges may be granted where an employee was out of work due to cessation of business activities for 18 months or less, caused by a disaster.