PA Department of Labor & Industry

Unemployment Tax Services

Unemployment Tax Services in Pennsylvania handles the collection of unemployment taxes from employers and the distribution of unemployment benefits to eligible individuals. It also provides guidance and support to businesses regarding their tax obligations and helps ensure the fair and efficient operation of the state's unemployment compensation system.

Unemployment Tax Services

Unemployment Compensation (UC) helps workers who lose their jobs through no fault of their own. It offers temporary income support. Also, it's for those looking for work and meeting certain criteria. To get UC, workers must have done jobs covered by Pennsylvania UC Law. Additionally, they must have worked for an employer who pays into the UC Fund.

Employers make contributions. They are in the form of quarterly tax payments. The payments are the main source of funding for UC benefit payments. An employee withholding tax is a secondary funding source.

UC program administration costs are paid for by federal employer taxes. These taxes are collected under the Federal Unemployment Tax Act (FUTA). Learn more about UC Tax Services.