HARRISBURG – A provision in Senate Bill 1083 to protect small employers from unfair tax increases was approved the General Assembly and sent to the governor for his signature, according to State Senator David G. Argall (R-29) and State Rep. Tim Twardzik (R-123).
“An employer in Schuylkill County followed all guidance from the state during the COVID-19 pandemic and kept his business closed, and now is facing a tax increase of thousands of dollars. That’s just wrong,” said Senator Argall. “I’m thankful Rep. Twardzik and I were able to work together with the Department of Labor and Industry to get this change approved by both the Senate and the House this year.”
“During a House Majority Policy Committee hearing held in Schuylkill County, I learned that small businesses were unfairly punished by unemployment compensation ratings after being shut down by Gov. Wolf,” said Rep. Twardzik. “Sen. Dave Argall and I immediately introduced legislation to do a commonsense and fair fix. We were able to join Sen. Lisa Baker and fix the problem. Entrepreneurs and small businesses are the backbone of our communities, and I am pleased to play a role in rolling back the unfair rating and cost increases.”
During the hearing of the House Majority Policy Committee in the Pottsville area, Dave Crouse, the owner of 3 C’s Restaurant near Port Clinton, testified how his unemployment compensation tax rate more than quadrupled after the pandemic.
The Department of Labor and Industry estimates that 2,700 Pennsylvania employers may face this increase in their unemployment compensation tax rate due to the prolonged shutdown of many businesses during the COVID-19 pandemic. The bill won support from more than 60 chambers of commerce across the state.
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