Subchapter F. COMPUTATIONS
DETERMINATION OF WEEKLY BENEFIT RATE Sec.
65.111. Benefit table.
65.112. Extending or contracting benefit table.
65.113. Computation of weekly wage.
65.114. High quarter rate determination.
65.115. Ascertainment of full-time weekly wage.
65.116. Application for benefits.
65.117. [Reserved].
WEEKLY NET EARNINGS IN SIDELINE SELF-EMPLOYMENT
65.121. Computation of weekly net earnings.
65.122. Seasonal businesses.
65.123. Application of computed earnings.
DETERMINATION OF WEEKLY BENEFIT RATE
§ 65.111. Benefit table.
(a) The table specified for the determination of rate and amount of benefits, as provided in Appendix A, shall be extended or contracted annually as prescribed in section 404(e)(2) of the law (43 P. S. § 804(e)(2)) as follows:
(1) The total number of persons in covered employment reported by employers to the Department for the 12-month period ending June 30 is divided by 12 and rounded to the nearest unit to produce the average monthly number of covered workers.
(2) The total amount of covered wages reported by employers to the Department—irrespective of the limit on the amount of wages subject to employer contributions—for the 12-month period ending June 30 is then divided by the monthly number of covered workers. The result is rounded to the nearest cent to produce the average annual wage.
(3) The average annual wage is then divided by 52, rounding to the nearest cent, to produce the average weekly wage.
(4) The average weekly wage is then multiplied by 2 and the product is divided by 3. The result becomes the maximum weekly benefit rate. If the result is not a whole dollar amount, it shall be rounded to the next higher multiple of $1.
(b) The amount of qualifying wages set forth in the benefit table for the highest quarterly wage, not the base year wages of the employe, shall be subject to section 401(a) of the law (43 P. S. § 801(a)).
(c) The Secretary shall annually submit the table specified for the determination of rate and amount of benefits to the Legislative Reference Bureau for suggested publication as a notice in the Pennsylvania Bulletin under 45 Pa.C.S. § 725(a)(6) (relating to additional contents of the Pennsylvania Bulletin) and for suggested codification in the Pennsylvania Code, as Appendix A, under 45 Pa.C.S. § 702(7) (relating to contents of the Pennsylvania Code).
Authority The provisions of this § 65.111 issued under sections 201(a) and 404(e)(2) of the Unemployment Compensation Law (43 P. S. § § 761(a) and 804(e)(2)).
Source The provisions of this § 65.111 adopted December 17, 1971, effective December 18, 1971, 1 Pa.B. 2319; corrected December 24, 1971, effective January 1, 1972, 1 Pa.B. 2346; amended December 15, 1972, effective January 1, 1973, 2 Pa.B. 2327; amended December 15, 1973, effective January 1, 1974, 3 Pa.B. 2817; amended December 20, 1974, effective 30 days subsequent to final approval of act of December 5, 1974, 4 Pa.B. 2568; amended December 19, 1975, effective January 4, 1976, 5 Pa.B. 3272; amended December 17, 1976, effective January 2, 1977, 6 Pa.B. 3113; amended December 17, 1977, effective January 1, 1978, 7 Pa.B. 3784; amended December 30, 1978, effective January 1, 1979, 8 Pa.B. 3812; amended December 22, 1979, effective January 1, 1980, 9 Pa.B. 4168; amended December 25, 1981, effective January 1, 1982, 11 Pa.B. 4439; amended December 31, 1982, effective January 1, 1983, 13 Pa.B. 17; corrected January 21, 1983, effective January 1, 1983, 13 Pa.B. 522; amended December 30, 1983, effective January 1, 1984, 13 Pa.B. 4013; amended December 28, 1984, effective December 29, 1984, 14 Pa.B. 4688; amended December 28, 1984, effective January 1, 1985, 14 Pa.B. 4719; amended January 3, 1985, effective January 1, 1986, 15 Pa.B. 50; amended December 26, 1986, effective January 1, 1987, 16 Pa.B. 5004; amended December 25, 1987, effective January 1, 1988, 17 Pa.B. 5359; amended December 23, 1988, effective January 1, 1989, 18 Pa. B. 5675; amended December 22, 1989, effective January 1, 1990, 19 Pa.B. 5467. Immediately preceding text appears at serial page (134103) to (134108).
Cross References This section cited in 34 Pa. Code § 65.112 (relating to extending or contracting benefit table).
§ 65.112. Extending or contracting benefit table.
(a) When it is necessary, under the provisions of section 404(e)(2) of the law (43 P. S. § 804(e)(2)), to extend the table specified in § 65.111 (relating to benefit table) and Appendix A for the determination of rates and amounts of benefits, it shall be done as follows:
(1) The words ‘‘or more’’ shall be deleted from the last line under Part A of Appendix A, and an amount $24 greater than the first entry in that line shall be substituted therefor.
(2) Part A shall be extended as much as necessary by adding $25 to each amount of the preceding line. At the point where the entry in Part B equals 64 2/3% of the average weekly wage, the first entry in Part A shall consist of an amount $25 greater than the smaller amount in the preceding line, and the words ‘‘or more’’ shall be added.
(3) Part B of Appendix A shall be extended in increments of $1.00 until that point is reached where the amount is equal to 64 2/3% of the average weekly wage.
(4) Part C of Appendix A shall be extended in increments of $40 to the point where, under Part B of Appendix A, the amount is equal to 64 2/3% of the average weekly wage.
(5) Part D of Appendix A shall be extended in increments of $30 to the point where, under Part B of Appendix A, the amount is equal to 64 2/3% of the average weekly wage.
(b) When it is necessary to contract the table specified for the determination of rates and amounts of benefits, it shall be done by deleting all lines following that in which the amount in Part B is 64 2/3 % of the average weekly wage and substituting the words ‘‘or more’’ for the higher amount under Part A in that line.
(c) The percent stated in subsections (a) and (b) for establishing the maximum weekly benefit rate shall be 64 2/3 % for calendar year 1975, and 66 2/3% for calendar year 1976 and for subsequent calendar years.
Source The provisions of this § 65.112 adopted December 3, 1971, effective December 4, 1971, 1 Pa.B. 2231; amended December 20, 1974, effective 30 days subsequent to final approval of the act of December 5, 1974, 4 Pa.B. 2568. Immediately preceding text appears at serial pages (13491) to (13492).
§ 65.113. Computation of weekly wage.
(a) It is an objective of the Pennsylvania Unemployment Compensation Program that an unemployed, eligible claimant shall be compensated for at least 50% of his weekly wage loss, subject to the maximum weekly benefit rate fixed by law.
(b) Prior to 1955, computation of the weekly benefit rate of the claimant was based exclusively upon his weekly earnings during that calendar quarter of his base year in which he has the greatest amount of wages in covered employment.
(c) When a claimant has experienced irregular or short term employment in his base year, the high quarter formula of subsection (b) has occasionally failed to compensate the claimant at the rate of 50% of his weekly wage. Section 404(a) of the law (43 P. S. § 804(a)) remedies this condition effective with benefit years commencing on or after May 1, 1955, to provide an alternate formula for computing a claimant’s compensation rate, that is 50% of his full-time weekly wage, whichever is greater.
Source The provisions of this § 65.113 adopted July 1, 1969.
Notes of Decisions Weekly Wage
Claimants employed as intermittent intake interviewers by the Office of Employment Security were entitled to receive benefits at 50% of their weekly wage, since, when working, they never worked less hours per week than a full-time work week. Brennan v. Unemployment Compensation Board of Review, 484 A.2d 430 (Pa. Cmwlth. 1984).
Cross References This section cited in 34 Pa. Code § 65.122 (relating to seasonal businesses).
§ 65.114. High quarter rate determination.
The high quarter formula, in most instances, yields a weekly benefit rate which is equal to or in excess of 50% of the full-time weekly wage of the claimant. Since the Department is in possession of the wage records of the claimant required for this computation, and since additional information not of record is required for determining his full-time weekly wage, the Department, for the purpose of practicable administration and in order to avoid delay in the payment of benefits, shall apply the following rules in determining the claimant’s weekly benefit rate under the provisions of this subchapter:
(1) A weekly benefit rate, computed on the basis of the claimant’s high quarter wages in accordance with Part A and Part B of Appendix A, shall be the rate on which his compensation rights shall be initially determined for any benefit year, unless it is found on the basis of employment experience in the claimant’s base year that 50% of his full-time weekly wage exceeds his weekly benefit rate as established by the high quarter formula, in which event his weekly benefit rate shall be 50% of his full-time weekly wage.
(2) An employe who is employed in an occupation in which the remuneration is based solely on commission with no fixed or guaranteed minimum, or an employe hired as a contingent or extra employe, or one hired for less than the full-time work week of the establishment, shall be deemed not to have a full-time weekly wage on the basis of that employment.
(3) The application of these rules shall in no way prejudice the right of a claimant whose base-year wages are insufficient to qualify him for compensation at the rate thus determined to receive compensation at a lower rate in accordance with section 404(a)(3) and (c) of the law (43 P. S. § 804(a)(3) and (c)).
Notes of Decisions Invalid
This section was held invalid because it excludes from the benefits of the optional calculation method allowed by 43 P. S. § 804(a)(1) a category of employes which was intended to be included, and because it is inconsistent with the broad humanitarian purpose and the language of the Unemployment Compensation Law. Brennan v. Unemployment Compensation Board of Review, 484 A.2d 430 (Pa. Cmwlth. 1984).
Weekly Wage
Working 30 out of a possible 35-hour work week does not qualify an applicant as a full-time weekly wage earner and benefits must be computed by the table located at 43 P. S. § 804(e)(1) as required by 43 P. S. § 804(a)(1). Figliomeni v. Unemployment Compensation Board of Review, 382 A.2d 1311 (Pa. Cmwlth. 1978).
§ 65.115. Ascertainment of full-time weekly wage.
The full-time weekly wage of an employe shall be that wage which an employe would receive if he were employed for a full-time week of not less than 5 full work days, and shall be ascertained as follows:
(1) In all cases, the wages paid by the employer from whom the claimant earned the greatest amount of wages in his base year, as shown on the Notice of Financial Determination (Form UC-44F), shall be used as the basis for ascertaining the full-time weekly wage. If the claimant was paid at more than one wage rate based upon a unit of time by the employer, the wage rate at which he earned the greatest amount of wages in his base year shall be used.
(2) In all cases, the full-time weekly wage shall be computed to the nearest dollar.
(3) If the wages are fixed by the week, the amount so fixed shall be the full-time weekly wage.
(4) If the wages are fixed by the month, the full-time weekly wage shall be the monthly wage so fixed, multiplied by 12 and divided by 52.
(5) If the wages are fixed by the year, the full-time weekly wage shall be the yearly wage so fixed, divided by 52.
(6) If the wages are fixed by the day, the full-time weekly wage shall be the daily wage rate multiplied by not less than five.
(7) If the wages are fixed by the hour, the full-time weekly wage shall be the hourly wage rate multiplied by the regularly scheduled number of hours in a full-time work day, and the result multiplied by not less than five.
(8) If the wages are fixed on a piece rate or tonnage basis, the full-time weekly wage shall be determined as follows:
(9) Wages earned in the calendar quarter in which the claimant’s earnings were the greatest in his base year shall be divided by the actual number of hours worked for the wages to establish the average hourly rate. The average hourly rate thus obtained shall be multiplied by the regularly scheduled number of hours in a full-time work day and the result multiplied by not less than five.
(10) If the wages are fixed on a combination of an hourly wage rate plus a piece work or tonnage rate, the full-time weekly wage shall be determined by the piece rate method, as explained in this section.
Source The provisions of this § 65.115 adopted July 1, 1969.
§ 65.116. Application for benefits.
(a) If, at the time the claimant files his initial application for benefits, a full-time weekly wage can be established, subject to verification, it shall be indicated on the initial application of the claimant. The weekly benefit rate for these applications shall be computed on the basis of the highest quarterly wages in accordance with Part A and Part B of Appendix A, or 50% of the full-time weekly wage, whichever is greater.
(b) If, at the time the claimant files his initial application for benefits, a full-time weekly wage cannot be established, the weekly benefit rate shall be computed solely on the basis of the high quarter formula. Upon receipt of the Notice of Financial Determination (Form UC-44F), the local office shall determine if there is a substantial basis for a weekly benefit rate determination based on full-time weekly wage. This determination may be made at the time of the waiting week or at the time of the benefit rights interview. For these cases the local office shall initiate whatever actions are required to obtain necessary wage information upon which to establish the full-time weekly wage.
Source The provisions of this § 65.116 adopted July 1, 1969.
§ 65.117. [Reserved].
Source The provisions of this § 65.117 adopted July 1, 1969; reserved February 11, 2011, effective February 12, 2011, 41 Pa.B. 848. Immediately preceding text appears at serial page (259507).
WEEKLY NET EARNINGS IN SIDELINE SELF-EMPLOYMENT
§ 65.121. Computation of weekly net earnings.
(Editor’s Note: This regulation has been held invalid. Lerch v. Unemployment Compensation Board of Review, 180 A.3d 545 (Pa. Cmwlth. 2018).)
(a) Since an accurate determination of weekly net earnings for a particular week or month will usually be impossible because of the time lapse between the performance of services and the receipt of resulting income. Weekly net earnings for a current calendar year shall be based on net earnings in a previous calendar year or on anticipated earnings in the current calendar year, if operations were not conducted in a previous calendar year, in accordance with the following:
(1) For a claimant engaged in farming, ‘‘gross income’’ from sales and services shall be reduced by subtraction of expenses for labor, feed, seeds and plants, fertilizer and lime.
(2) For a claimant engaged in a business other than farming, ‘‘gross income’’ from sales and services shall be reduced by subtraction of the cost, if any, of goods sold. Cost of goods sold shall include the total cost of merchandise, cost of labor and cost of material and supplies.
(3) The remainder shall be divided by the number of weeks during which the farm or business operated or will operate during a year. The quotient shall represent the weekly net earnings to be used for the purpose of computing benefits payable.
(b) Weekly net earnings computed in accordance with subsection (a) applies throughout the benefit year for as long as the business operates in the benefit year.
Notes of Decisions Net Earnings
The provisions of 34 Pa. Code § 65.121 provide only for the deduction of labor and material costs from gross income in computing the net earnings of a single sideline business; nothing suggests that losses from failing sideline ventures may be deducted from profits of successful sideline businesses in computing weekly income from sideline activities. Frederick v. Unemployment Compensation Board of Review, 423 A.2d 801 (Pa. Cmwlth. 1980).
This regulation is unreasonable because it so severely limits the deductions from gross income of a sideline service business as to eliminate any distinction between gross and net income. This regulation also exceeds the Department’s statutory authority and the Department lacked legal authority to repromulgate the regulation after an appellate court found it was unauthorized. Lerch v. Unemployment Compensation Board of Review, 180 A.3d 545, 553 (Pa. Cmwlth. 2018).
Source The provisions of this § 65.121 adopted July 1, 1969.
§ 65.122. Seasonal businesses.
When seasonal businesses are involved, weekly net earnings computed in accordance with § 65.113 (relating to computation of weekly wage) apply to any weeks in the benefit year during which the business normally operates.
Source The provisions of this § 65.122 adopted July 1, 1969.
§ 65.123. Application of computed earnings.
Application of computed weekly net earnings apply whether or not a benefit year overlaps a calendar year.
Source The provisions of this § 65.123 adopted July 1, 1969.
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