Pennsylvania Governor Tom Wolf announced that there will be a reduction in unemployment tax rates saving businesses an estimated $552 million this year. Effective January 1st, 2020, the 1.1% unemployment tax rate factor has been eliminated, resulting in the lowest unemployment compensation tax rate since 1979.
In 2012, Pennsylvania’s federal loans for unemployment insurance were refinanced through the sale of bonds in order to reduce the interest rate, saving employers approximately $57 in interest. A 1.1% interest factor was introduced from 2013-2019 in order to repay the bonds.
As of July 1st, 2019, the state unemployment insurance trust fund solvency was at 181%, the highest level since 2001. When the trust fund reaches 250% of the annual benefit payout over the last three years, it is considered solvent.
You may read the press release from Governor Tom Wolf to learn more.