Should You Consider a Voluntary Contribution to the PA US Fund?

January 05, 2017

January 30 is the last day to make a voluntary contribution to the Pennsylvania UC Fund, potentially reducing your UC tax rate.

By now, you’ve received your 2017 PA UC tax rate and, like every year, you may be a bit amazed. The good news is that if you’re an experience-rated employer, a voluntary contribution to the PA UC Fund could reduce your tax rate and save you mucho dinero this year. The non-refundable contribution is added to your reserve balance, potentially lowering your UC tax rate.

Wondering if a voluntary contribution can make a difference for you? Go to Pennsylvania’s Unemployment Compensation Self-Serve Portal and log in to your account. Next, select “Contribution Rates” from the menu. On the next page, select “Voluntary Contribution Calculator.” There you will find different rates and the voluntary contribution necessary to achieve a particular rate.

If you believe a voluntary contribution can make a difference, you can request a recalculation of your UC tax rate. Send a letter of explanation along with your voluntary contribution to the Department of Labor and Industry by January 30.

Remember, your voluntary contribution is not refundable or revocable, and cannot be used as a credit against future tax due.

If you’re scratching your head in bewilderment, call PaySmart at (717) 766-1777 or email us at payroll@paysmartpa.com. We can run the calculation for you.*

*There will be a $50 charge for this service.