“Employers Beware: Pennsylvania Supreme Court Expands Reach of UC Tax”

Article by Jennifer Karpchuk on “Employers Beware: Pennsylvania Supreme Court Expands Reach of UC Tax”

In an article published on May 11, 2020 in Tax Notes, Philadelphia-based Shareholder Jennifer Karpchuk examines where Pennsylvania’s unemployment compensation law stands in light of A Special Touch v. Department of Labor & Indus., a recent state supreme court case.

“Pennsylvania Supreme Court was recently asked to clarify the definition of employment under the state’s unemployment compensation (UC) law, and its holding could increase the amount of UC tax that employers must contribute and collect from employees,” explains Karpchuk.

This case discussed whether a tax payer’s interpretation of the phrase requiring that one be capable of being involved in an independently established trade, occupation, profession or business while the Department of Labor and Industry, Office of Unemployment Compensation Tax Services argued the phrase require an individual to be involved in an independently established trade, occupation, profession, or business in actuality. This led to the court’s analysis examining the dictionary definitions of customarily and engaged.  

Karpchuk further explains that, “the analysis of whether a person qualifies under subsection 4(l)(2)(B) depends on multiple statutory factors, of which the customarily engaged requirement is merely one.”

To view the full article, subscribers may click here.

• Jennifer Karpchuck article on Employers Beware - Pennsylvania Supreme Court Expands Reach of UC Tax.pdf