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Article: L&I Announces Unemployment Compensation Solvency Tax Rates For 2005; Economic Challenges Mandate Increased Tax Rate, Benefit Reductions for First Time Since 1988.
- Article from:
- PR Newswire
- Article date:
- August 6, 2004
CopyrightCOPYRIGHT 2004 PR Newswire Association LLC. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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HARRISBURG, Pa., Aug. 6 /PRNewswire/ -- PA Labor & Industry Secretary Stephen M. Schmerin today announced that a new series of unemployment compensation solvency taxes will automatically go into effect on Jan. 1, 2005, as mandated by a "solvency trigger mechanism" in the UC law.
The taxes support the UC trust fund that provides benefits for Pennsylvania workers who lose jobs through no fault of their own. In 1988, in response to the fund's being in debt for more than a decade, the Legislature enacted a law that adjusts, by a formula, worker benefits and employer/employee taxes in relation to the solvency status of the fund.
"Because of ...