Unemployment Compensation Insurance
Participating townships contributions are invested and used to pay any unemployment compensation charges the participating townships incur for current or former employees.
How it works
The PSATS Unemployment Compensation Group Trust Fund was established in 1981 for townships of the second class. Since that time, membership has grown steadily, and today 1,178 townships participate in the program. The Fund operates on the “reimbursement-of-costs” basis. The quarterly contributions that participating townships pay into the program are invested. These invested contributions are used to pay any unemployment compensation charges the participating townships incur for current or former employees.
When your township is a member of the PSATS Unemployment Compensation Group Trust Fund, your employees or former employees will contact the local U.C. Service Center for your area. The local U.C. Service Center determines the eligibility for unemployment compensation benefits under the PA U.C. Law and the weekly amount they will receive. The PSATS Unemployment Compensation Group Trust Fund receives from the Office of Unemployment Compensation Tax Services a monthly statement of unemployment compensation charges known as a (UC-150), “Notice of Amount Due for Compensation Paid,” and, in turn, reimburses the PA U.C. Fund dollar-for-dollar for all unemployment compensation charges.
The contribution rates for the PSATS Unemployment Compensation Group Trust Fund are based on the experience modification formula (claims to contributions) for the preceding three years, excluding the current year. New members enrolling in the Trust shall have a contribution rate set 10% lower than the state rate that would otherwise be applicable to the enrollee. New members contribution rate shall be adjusted in accordance with the then applicable rate schedule after three years participation in the Trust, subject to earlier adjustment, if during the first three years participation the enrollee’s claims to contribution ratio rises above 150%.
For information on joining the PSATS Unemployment Compensation Group Trust Fund, contact Deb Gussler at 800-382-1268 or email@example.com.