Subchapter C. NONPROFIT ORGANIZATIONS MAKING PAYMENTS IN LIEU OF CONTRIBUTIONS
Sec.
63.91. Elections.
63.92. Time for compliance.
63.93. Filing of surety bond.
63.94. Filing of security deposit.
63.95. Money or securities received.
63.96. [Reserved].
63.96a. Conversion to contributory status.
63.97. Return or sale of money or securities.
63.98. Refunds and adjustments.
63.99. Assignment of rate of contribution.
63.100. Supplements to payments.
Source The provisions of this subchapter C adopted March 3, 1972, 2 Pa.B. 404, unless otherwise noted.
§ 63.91. Elections.
(a) Duration. A nonprofit organization electing to make payments in lieu of contributions shall make its election effective for a period of 2, 3 or 4 calendar years. This subsection does not prevent a nonprofit organization from filing one or more successive elections.
(b) Transitional provision. An election that is effective prior to June 18, 2011 terminates on the later of the following dates, unless sooner terminated in accordance with the law:
(1) December 31 of the third calendar year following the calendar year in which the election became effective.
(2) December 31 of the calendar year in which this regulation takes effect, if this regulation takes effect from January 1 through June 30, or December 31 of the calendar year immediately following the calendar year in which this regulation takes effect, if this regulation takes effect from July 1 through December 31.
Source The provisions of this § 63.91 amended June 17, 2011, effective June 18, 2011, 41 Pa.B. 3094. Immediately preceding text appears at serial page (235590).
§ 63.92. Time for compliance.
Nonprofit organizations electing to make payments in lieu of contributions shall comply with this subchapter within 30 days from the effective date of the election.
§ 63.93. Filing of surety bond.
Nonprofit organizations subject to this subchapter electing to file a surety bond shall file with the Department a surety bond issued by an insurance company with a certificate of authority to provide such coverage in the Commonwealth. The term of the security bond shall coincide with the period for which the employer elects to make payments in lieu of contributions. The surety bond must secure reimbursement of benefit payments that are based on wages paid during the period of the election, including benefit payments made after the period of the election, together with interest and penalties.
Source The provisions of this § 63.93 amended September 24, 1976, 6 Pa.B. 2395; amended June 17, 2011, effective June 18, 2011, 41 Pa.B. 3094. Immediately preceding text appears at serial page (235590).
Cross References This section cited in 34 Pa. Code § 63.94 (relating to filing of security deposit).
§ 63.94. Filing of security deposit.
(a) In lieu of a surety bond, as prescribed in § 63.93 (relating to filing of surety bond), nonprofit organizations subject to this subchapter may deposit money, in a form acceptable to the Department or securities of a kind acceptable to the Department.
(b) If a nonprofit organization deposits money or securities in connection with an election to make payments in lieu of contributions, it shall file a surety bond or deposit new collateral in connection with any subsequent election.
(c) Money or securities deposited with the Department in connection with an election to make payments in lieu of contributions secures reimbursement of both of the following, together with interest and penalties:
(1) Benefit payments that are based on wages paid during the period of the election, including benefit payments made after the period of the election.
(2) If the money or securities constitute new collateral in accordance with subsection (b), benefit payments that are based on wages paid during the period of the previous election, including benefit payments made after the period of the previous election.
Source The provisions of this § 63.94 amended June 17, 2011, applies to elections to make payments in lieu of contributions that take effect on or after June 18, 2011, effective June 18, 2011, 41 Pa.B. 3094. Immediately preceding text appears at serial page (235591).
§ 63.95. Moneys or securities received.
(a) Money received. The Department will deposit all money received with the State Treasurer, Commonwealth of Pennsylvania. Any interest paid by the State Treasurer on money received from an employer shall accrue to the employer, subject to § 63.97 (relating to return or sale of money or securities).
(b) Securities received. Securities received will be deposited with the State Treasurer of the Commonwealth. The securities shall be assigned to the Department and be negotiable by the Department at any time. Interest or dividends accruing thereon shall be the property of the owner of the securities, subject to § 63.97.
Source The provisions of this § 63.95 amended June 17, 2011, effective June 18, 2011, 41 Pa.B. 3094. Immediately preceding text appears at serial page (235591).
§ 63.96. [Reserved].
Source The provisions of this § 63.96 reserved February 29, 1980, effective March 1, 1980, 10 Pa.B. 912.
§ 63.96a. Conversion to contributory status.
(a) If an employer that elects to make payments in lieu of contributions fails to provide a surety bond, money or securities in accordance with section 1106(d) of the law (43 P. S. § 906(d)) and this subchapter, the employer’s election is void.
(b) If an employer that elects to make payments in lieu of contributions provides a surety bond that ceases to be effective during the period of the election, and the employer does not provide a replacement bond for the remainder of the period of the election within 30 days after the Department requests the replacement bond, the Department will terminate the election. The Department will specify the effective date of the termination, which may be retroactive to the first day of the calendar quarter in which the bond ceases to be effective. A termination of an election under this subsection is not governed under section 1107(b) of the law (43 P. S. § 907(b)).
(c) If an employer who elects to make payments in lieu of contributions subsequently becomes a contributory employer, and the employer owes reimbursement for benefit payments, or interest or penalties, the unpaid reimbursement, interest or penalties constitute unpaid contributions, interest or penalties for purposes of section 301(a)(2) of the law (43 P. S. § 781(a)(2)). The date when benefits are paid is used to determine if the unpaid reimbursement, interest or penalties correspond to the period through the second calendar quarter of the preceding calendar year.
(d) If an employer who elects to make payments in lieu of contributions subsequently becomes a contributory employer, the employer remains liable to reimburse the Department for benefit payments made after the period of the election that are based on wages paid during the period of the election, in addition to the employer’s liability for contributions on wages paid after the period of the election.
Source The provisions of this § 63.96a adopted June 17, 2011, effective June 18, 2011, 41 Pa.B. 3094.
§ 63.97. Return or sale of money or securities.
Any deposit of money or securities received will be held until the organization’s liability for payments is terminated. Upon termination of liability the deposit will be returned, minus any amount, including interest and penalty, due the Department. The Department is authorized to sell securities deposited to satisfy any amount due, in which event any interest and increase in value accruing on the securities will be applied to the amount due to the Department.
Source The provisions of this § 63.97 amended June 17, 2011, effective June 18, 2011, 41 Pa.B. 3094. Immediately preceding text appears at serial pages (235591) to (235592).
§ 63.98. Refunds and adjustments.
Reimbursement payments in lieu of contributions collected from an employer for the amount of benefits charged to his account may not be deemed to be erroneously collected and subject to refund or credit of any amount paid until the amount is recovered from the claimant.
§ 63.99. Assignment of rate of contribution.
If an employer who elects to make payments in lieu of contributions subsequently becomes a contributory employer, the employer’s rate of contribution shall be determined in accordance with the following:
(1) Wages paid by the employer during the period of the election, employee contributions paid on those wages, and benefit payments based on those wages are not taken into account for purposes of experience rating.
(2) If the employer was a contributory employer before the period of the election and the employer’s reserve account has not been terminated under section 302(d) of the law (43 P.S. § 782(d)), the employer is assigned a rate of contribution in accordance with section 301(a)(1) or 301.1 of the law (43 P.S. § 781(a)(1) and § 781.1)), whichever is applicable.
(3) If the employer was a contributory employer before the period of the election and the employer’s reserve account has been terminated under section 302(d) of the law, or the employer was not a contributory employer before the period of the election, the employer is assigned a rate of contribution in accordance with section 301(a)(3) or (4) of the law, whichever is applicable, until the employer is no longer subject to those provisions.
(4) A rate of contribution determined in accordance with paragraph (2) or (3) is subject to any adjustments required under the rate provisions of the law.
Source The provisions of this § 63.99 amended March 7, 1975, 5 Pa.B. 441; amended June 17, 2011, effective June 18, 2011, 41 Pa.B. 3094. Immediately preceding text appears at serial page (235592).
§ 63.100. Supplements to payments.
This section shall supplement the list of payments made into the Unemployment Compensation Fund under section 601 of the Law (43 P.S. § 841), as follows:
(1) Payments in lieu of contributions collected under the law.
(2) Moneys collected from the Federal Government as reimbursements under section 204 of the Federal-State Extended Compensation Act of 1970 (26 U.S.C.A. § 3301 et seq.).
Cross References This section cited in 34 Pa. Code § 63.94 (relating to filing of security deposit).
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