State of PA Requiring Electronic Payments for PAUC
The state of Pennsylvania will begin requiring electronic payments for employers as of January 1, 2017. 
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From the Pennsylvania Department of Revenue:

Effective January 1, 2017, employers are required to pay Unemployment Compensation (UC) contributions and
reimbursement Statement of Accounts electronically if the total liability owed equals or exceeds $5,000 for
a payment period. Once the threshold is met all subsequent payments must also be submitted electronically,
even if the amounts due for subsequent periods are less than $5,000.

For Contributory employers, this requirement begins with the 1st calendar quarter 2017 filing period.
For Reimbursable employers, this requirement begins with the first 2017 monthly or quarterly benefit
charge period.

The liability owed for a payment period includes contributions, reimbursement of benefit charges, interest,
and penalties for that payment period. Employers whose liability reaches the $5,000 threshold are required
to make all payments of contributions, reimbursement of benefit charges, interest, penalty, and/or fees
electronically through the Unemployment Compensation Management System (UCMS).

Failure to comply can result in a penalty of 10% of the payment, up to a maximum of $500 with a minimum
of $25 per occurrence.

Payment Methods

Employers who pay electronically have three payment options within UCMS:
• Automated Clearing House debit (ACH debit),
• Automated Clearing House credit (ACH credit), and
• Credit Cards.

ACH debit provides the most efficient and accurate transfer of information and is therefore the preferred
method of the department. All three methods are simple to complete in UCMS.

Electronic Payment Waivers

Employers that are unable to comply with the electronic payment requirement may complete a waiver
request form stating the reason for non-compliance and the anticipated date electronic payment will
begin. The request must be returned to the address on the form. The department will review each request
and issue a determination. The waiver request form is available at

Benefits of Electronic Payment

Electronic payment of UC tax liabilities is the most secure and efficient method of payment. With an electronic
payment, the payment and banking information is securely transferred to UCMS via the Internet. If payment
information is entered directly into UCMS, it is securely stored and transmitted to the bank. Electronic
payment will not only save both the employer and Commonwealth time and money, it will also reduce the
possibility for errors and provide the payer more control over the allocation of the payment to their UC tax
account. Also, paying online eliminates postage and paper handling costs for both the Commonwealth and

Paying your UC tax liability electronically is secure, reliable and financially prudent for everyone.

Please feel free to contact me at  610.828.1900 or  with questions regarding the new PAUC payment requirements.

For more information, please visit 

Disclaimer: This article is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code.  We strongly advise you to seek professional assistance with respect to your specific issue(s).                                                                   
Martin C. McCarthy, CPA
Managing Partner
McCarthy & Company, PC