Small Businesses to General Assembly: Help Employers Avoid UC Tax Increases

Date: June 17, 2022

NFIB calls for funding to address Unemployment Compensation Trust Fund

HARRISBURG, Pa. (June 17, 2022) – The National Federation of Independent Business (NFIB) Pennsylvania and the PA Chamber of Business and Industry sent a letter to the Pennsylvania General Assembly urging members to allocate funding to address the Commonwealth’s depleted Unemployment Compensation (UC) Trust Fund and help employers avoid tax increases.

“With billions of dollars in excess revenue, and ARP dollars remaining, it is imperative that the General Assembly address the financial health of the Unemployment Compensation Trust Fund and not saddle the small business community with tax increases while they struggle to survive,” said Greg Moreland, NFIB Pennsylvania State Director.

The COVID-19 pandemic and broad government-mandated business shutdown orders prompted a historic demand on Pennsylvania’s UC system and eventually depleted the UC Trust Fund, which forced the Commonwealth to borrow from the federal government to pay the state share of benefits. Now, small businesses are facing automatic employer tax increases in the years ahead which will cost employers hundreds of millions of dollars beyond the billions in UC taxes already paid annually.

“Pennsylvania employers already pay some of the highest UC taxes in the country and should not be solely on the hook for these current costs – much of which is a result of business shutdown orders and fraudulent claims,” said Alex Halper, Director, Government Affairs, PA Chamber.

The federal government has authorized states to utilize funds from the American Rescue Plan Act to address UC. NFIB and the PA Chamber urge lawmakers to consider this proposal while crafting the 2022-2023 budget.

Related Content: Small Business News | Pennsylvania | Taxes

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