Click here to subscribe today or Login.
WILKES-BARRE — Pennsylvania Department of Labor & Industry Secretary Kathy Manderino stopped by the city’s CareerLink office Wednesday to announce an unemployment compensation amnesty program.
The program — its slogan is “Make it Right” — targets unemployment beneficiaries who receive overpayments and employers with delinquent accounts. They will be able to make payments at a discounted rate without further financial penalty or legal action from July 1 to Sept. 30.
The first amnesty program was implemented in 2013, and was the first of its kind in the nation, Manderino said. She added the program netted more than $15 million in overpayments and tax liabilities.
The department estimates approximately 3,500 claimants and 560 employers in Luzerne County are eligible for the amnesty option, making it one of the top 20 counties in the state for balances owed.
Eligible parties include: claimants with overpayments established on or before Dec. 31, 2016; employers with unpaid contributions through the third quarter of 2016; and employers with unpaid reimbursements due on or before Oct. 31, 2016.
They will receive notices with instructions for participating and what they owe. Other parties who feel they may be eligible can participate as well.
“It’s an opportunity for claimants and for employers to do the right thing, to pay what they owe, and to end up with a clean slate,” Manderino said.
Amnesty will no longer be granted after the program’s end date, and it will not be an annual occurrence, according to the department’s website. Eligible parties will not be further penalized for not participating in the program, but will be subject to the regular penalties for their outstanding obligations.
Penalties and impacts include poor credit ratings, liens on property, inability to take out loans and inability of claimants to collect unemployment benefits in the future.
Manderino explained there are two types of claimants with outstanding balances — fault and non-fault.
Claimants in the fault category knowingly gave false information or omitted information that allowed them to receive more benefits than they were entitled to. Claimants in the non-fault category unwittingly accepted more compensation than they were entitled to.
During the three-month amnesty, fault claimants will receive a discount of half off interest accrued on their balances. They will be required to pay the full overpayment balance, lien costs, a 15 percent penalty and the remaining 50 percent interest.
Non-fault claimants will receive a half-off discount on their entire overpayment balance.
Employers will owe all contribution or reimbursement balances, lien costs and half of the interest accrued.
The website for the program is ucamnesty.pa.gov, and you can also call toll-free numbers to participate. Claimants can call 855-284-8545, and employers can dial 866-403-6163.