NOTICES
DEPARTMENT OF
LABOR AND INDUSTRY
Unemployment Compensation Amnesty Program; Amnesty Guidelines
[47 Pa.B. 1923]
[Saturday, April 1, 2017]Section 1. Overview of the Program.
The act of November 3, 2016 (P.L. 1100, No. 144) (Act 144) established the Unemployment Compensation Amnesty Program (Amnesty Program). Act 144 specifies the unemployment compensation (UC) liabilities that are eligible for amnesty, the extent to which amnesty may be given, and the terms and conditions governing the Amnesty Program. Act 144 provides that the Amnesty Program will be in effect for a period of 3 consecutive calendar months, as designated by the Department. Act 144 requires the Department to establish and publish these guidelines to implement the Amnesty Program.
To participate, a claimant or employer owing a liability that is eligible for amnesty shall file an amnesty form within the amnesty period. In some cases additional information about the liability must be included. The claimant or employer shall pay a certain portion of the liability; the remaining portion will be waived. UC liabilities paid after the amnesty period ends on September 30, 2017, will not be eligible for amnesty. The amnesty provisions of Act 144 may be found in Article XV-A of the law (43 P.S. §§ 919.1—919.10).
Section 2. Definitions.
The following words and phrases, when used in these guidelines, have the following meanings, unless the context clearly indicates otherwise:
Amnesty period—The period designated in section 3.
Department—The Department of Labor and Industry.
Employee information—The name and Social Security number of each employee, the amount of wages paid to each employee and the number of credit weeks for each employee in each calendar quarter.
Interest—Monetary obligations imposed under sections 308 and 804(a) of the law (43 P.S. §§ 788 and 874(a)).
Law—Unemployment Compensation Law (43 P.S. §§ 751—919.10).
Penalties—Monetary obligations imposed under sections 206(d) and 313 of the law (43 P.S. §§ 766(d) and 793).
Penalty weeks—Weeks for which an individual is disqualified from receiving compensation under section 801(b) of the law (43 P.S. § 871(b)).
Section 3. Amnesty Period.
The amnesty period shall begin on July 1, 2017, and continue through September 30, 2017.
Section 4. Amnesty Requirements.
To receive amnesty with respect to one or more liabilities eligible for amnesty under section 5, an employer or claimant shall do all of the following:
(1) Complete and file an amnesty form in accordance with section 7.
(2) Submit the payment or payments corresponding to the liability or liabilities for which amnesty is sought, as required under section 5, with the amnesty form.
(3) Submit information or documents corresponding to a liability for which amnesty is sought, as required under section 5(b), with the amnesty form.
(4) Satisfy any other amnesty requirements under Article XV-A of the law, these guidelines and the Department's instructions.
Section 5. Eligible Liabilities.
(a) Except as provided in section 6, the unpaid liabilities listed in the following chart are eligible for amnesty. To receive amnesty with respect to a liability, the employer or claimant shall pay the amounts corresponding to that liability, as indicated in the chart, with the amnesty form.
Type of Liability Obligor Description of Unpaid Liability Amounts the Employer or Claimant Shall Pay What the Department
will Waive1 Employer Contributions for calendar quarters through the third quarter of 2016, for which the employer reported the employee information or the Department acquired the employee information through an audit. All of the contributions and lien costs due and one-half of the interest and penalties due. Remaining interest and penalties due. 2 Employer Reimbursement due on or before October 31, 2016. All of the reimbursement and lien costs due and one-half of the interest due. Remaining interest due. 3 Employer Interest due on contributions paid late for calendar quarters through the third quarter of 2016 or on reimbursement that was due on or before October 31, 2016, and was paid late. All of the lien costs due and one-half of the interest due. Remaining interest due. 4 Employer Penalties due for calendar quarters through the third quarter of 2016 for which contributions are fully paid. All of the lien costs due and one-half of the penalties due. Remaining penalties due. 5 Claimant Fault overpayment established on or before December 31, 2016. All of the overpayment balance, 15% assessment under section 801(c) of the law and lien costs due and one-half of the interest due. Remaining interest due, one-half of previously imposed but unserved penalty weeks,* and new penalty weeks. 6 Claimant Nonfault overpayment established on or before December 31, 2016. One-half of the overpayment balance. Remaining balance of the overpayment. 7 Claimant Interest due on fault overpayment established on or before December 31, 2016, and previously repaid. All of the 15% assessment under section 801(c) of the law and lien costs due and one-half of the interest due. Remaining interest due. *If one-half of the unserved penalty weeks is not an even multiple of one, the number of penalty weeks waived shall be rounded to the next lower multiple of one.
(b) Except as provided in section 6, the unpaid liabilities listed in the following chart are eligible for amnesty. To receive amnesty with respect to a liability, the employer or claimant shall provide the information corresponding to that liability and pay the amounts corresponding to that liability, as indicated in the chart, with the amnesty form.
Type of Liability Obligor Description of Unpaid Liability Information the Obligor Shall Provide Amounts the Employer or Claimant Shall Pay What the Department
will Waive8 Employer Contributions for calendar quarters through the third quarter of 2016, for which the employer did not report the employee information and the Department did not acquire the employee information through an audit. The employer shall report the employee information by filing quarterly reports for all calendar quarters for which the employer did not previously file reports and amended reports for all calendar quarters for which the employer did not file complete reports. All of the contributions due and one-half of the interest and penalties due. Remaining interest and penalties due. 9 Claimant Compensation paid for weeks through the week ending December 31, 2016, for which the Department has not issued a Notice of Determination of Overpayment, but the claimant acknowledges that he received a fault overpayment with respect to the compensation. The beginning date and ending date of the period for which the claimant was overpaid. All of the overpayment Penalty weeks.** **Because a Notice of Determination of Overpayment has not been issued, no interest has accrued.
(c) If a claimant or employer has more than one type of unpaid liability eligible for amnesty, the employer or claimant shall pay the amount required for each type of unpaid liability under subsections (a) and (b) to participate in the Amnesty Program.
Section 6. Excluded Liabilities.
(a)(1) The following unemployment compensation liabilities are not eligible for amnesty:
(i) An overpayment of compensation established pursuant to a Notice of Determination of Overpayment that has not become final.
(ii) An employer liability for which a petition for reassessment under section 304(b) of the law (43 P.S. § 784(b)) or an application for review and redetermination of contribution rate under section 301(e)(2) of the law (43 P.S. § 781(e)(2)) is pending.
(2) If a claimant or an employer withdraws an appeal involving a liability described in paragraph (1) and the liability becomes final, the liability will be eligible for amnesty.
(b) The Department may exclude the following liabilities from amnesty:
(1) A liability for which a praecipe for a writ of execution was filed prior to receipt of the amnesty form.
(2) A liability that was referred for judicial proceedings or for which a judicial proceeding was commenced prior to receipt of the amnesty form.
(3) A liability that is required to be paid under an order of a Federal or State court.
Section 7. Amnesty Form.
(a) An employer or claimant seeking amnesty shall complete and file an amnesty form with the Department during the amnesty period. The form shall contain all information required by the Department.
(b) If a claimant or employer receives correspondence from the Department with instructions to complete and return a form supplied by the Department or instructions to complete and file an electronic form, one of the following procedures shall apply, as chosen by the claimant or the employer:
(1) The form supplied by the Department constitutes the claimant's or employer's amnesty form. The claimant or employer shall file the form with the Department by mail. The filing date of the form shall be determined in accordance with 34 Pa. Code § 63.25(b) (relating to filing methods).
(2) The electronic form specified by the Department constitutes the amnesty form. The claimant or employer shall submit the form as instructed by the Department. The filing date of the form shall be determined in accordance with 34 Pa. Code § 63.25(e).
(c) If a claimant or employer does not receive correspondence from the Department, the claimant or employer shall use the applicable amnesty form available on the Department's web site at www.uc.pa.gov. The claimant or employer shall file the form with the Department by mail. The filing date of the form shall be determined in accordance with 34 Pa. Code § 63.25(b).
Section 8. Additional Terms and Conditions of the Amnesty Program.
(a) If a payment plan agreement exists between an employer or claimant and the Department for a liability for which the employer or claimant is seeking amnesty, the employer or claimant shall pay the amount or amounts required by section 5 during the amnesty period notwithstanding any terms of the agreement to the contrary.
(b) The Department will not begin administrative or judicial proceeding against an employer with regard to any contributions, reimbursement, interest or penalties paid under the Amnesty Program or interest or penalties waived under the Amnesty Program. The Department will not begin any administrative or judicial proceeding against a claimant with regard to overpayment or interest paid under the Amnesty Program or any overpayment or interest waived under the Amnesty Program.
(c) If a Type 8 or Type 9 liability described in section 5(b) is disclosed and paid under the Amnesty Program, and the Department determines that the liability as disclosed was understated, the Department may begin administrative or judicial proceedings and impose interest, penalties and other monetary obligations only with regard to the difference between the liability as disclosed and the correct amount of the liability.
(d) Except as provided in subsection (c), nothing in these guidelines shall be construed to prohibit the Department from beginning administrative or judicial proceedings and imposing interest, penalties and other monetary obligations with respect to any liability that is not disclosed under the Amnesty Program or any amount that is not paid under the Amnesty Program.
(e) An employer or claimant shall not be owed a refund or credit under these guidelines for an amount paid prior to the amnesty period.
(f) An employer or claimant may not begin an administrative or judicial proceeding with regard to the amnesty form, any report filed in connection with the Amnesty Program, any liability disclosed under the Amnesty Program or any amount paid under the Amnesty Program, and shall not be owed a refund or credit for any amount paid under the Amnesty Program.
(g) Except as expressly provided in these guidelines, these guidelines may not:
(1) Be construed to relieve any employer, claimant, individual or any entity from filing reports or other documents required by, or paying any amounts due under, the law.
(2) Affect or terminate any petitions, investigations, prosecutions or any other administrative or judicial proceedings pending under the law.
(3) Prevent the beginning or further prosecution of any proceedings by the proper authorities of the Commonwealth for violation of any laws or for the assessment, collection or recovery of any amounts due to the Commonwealth under any laws.
Section 9. Primacy of the Law.
If there is a conflict between the law and these guidelines, the law shall prevail.
Section 10. Bankruptcy.
If a claimant or employer is in bankruptcy, any correspondence received from the Department pursuant to the Amnesty Program is for informational purposes and does not constitute an attempt to collect a debt in violation of the Bankruptcy Code.
KATHY M. MANDERINO,
Secretary
[Pa.B. Doc. No. 17-546. Filed for public inspection March 31, 2017, 9:00 a.m.]
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