OUR THOUGHTS ON:

Pennsylvania's 2010 Contribution Rates Increase for Many Companies

Tax

By Jeffrey Wlahofsky

The PA Department of Labor & Industry mailed the 2010 contribution rate notices to PA employers during the last few weeks. Many of the notices may have significant rate increases as a result of the unemployment benefits paid the last few years and the employer’s history.

As a result of this rate increase, PA employers will have a significant tax increase on their 2010 1st quarter PA unemployment report. If this payment results in a hardship, the PA Department of Labor & Industry is allowing PA employers to enter into a payment plan. The plan that was provided is a follows:

1) The 2010 unemployment reports be timely filed,
2) The payment for the 1st quarter can be paid over a 10 month period
beginning in April of 2010,
3) The 2nd, 3rd and 4th quarter payments must be timely paid.

The taxpayer will not be penalized for entering into a payment plan, but will be assessed interest at a rate of 7½%.

In order to enter into a payment plan, employers should contact their local Department of Labor & Industry office.

Schneider Downs provides accounting, tax and business advisory services, through innovative thought leaders who deliver the expertise to meet the individual needs of each client. Our offices are located in Pittsburgh, PA, and Columbus, OH.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

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Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

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