Officials in Pennsylvania have announced an unemployment compensation (UC) amnesty program aimed at recouping funds owed to the state’s UC Trust Fund.
The amnesty program runs from July 1 through September 30, 2017. Both claimants who have received unemployment benefits that they were not entitled to and employers who have not made mandatory tax contributions to the trust fund are being offered amnesty to repay what they owe at a discount. The total amount owed to the state from both claimants and employers that are eligible for the amnesty program is $651 million.
“Amnesty is an opportunity for claimants and employers who owe the UC Trust Fund to ‘Make It Right,’ pay what they owe at a discount, and end up with a clean slate,” said Labor & Industry Secretary Kathy Manderino. “Not making good on this financial obligation can impact claimants’ or employers’ credit ratings, subject them to liens on property, hinder their ability to get a loan, or for individuals, to obtain UC benefits in the future.”
More than 139,231 claimants and nearly 39,000 employers are receiving letters advising them of the amnesty program, reminding them of how much they owe and instructing them how to pay it back.
The state has used similar programs in the past. The first amnesty program was implemented in 2013, and is claimed by officials to have been the first of its kind in the nation. The program in 2013 netted more than $15 million in overpayments and tax liabilities.