Section 781.6 - Additional Contribution for Interest and Debt Service.--
(a) Notwithstanding any other provision of this act, all employers required to pay contributions under section 301 or 301.1 other than those employers covered by paragraphs (3) and (4) of subsection (a) of section 301 shall have their rate of contribution increased by the rate of the Interest Factor in effect for the applicable calendar year.(b) All taxes collected under this section shall be considered to be separate and apart from any contributions required to be deposited in the Unemployment Compensation Fund. All taxes collected under this section shall be deposited in the Debt Service Fund established by section 601.2 of this act. Such taxes will not be credited to the employer's reserve account.(c)(1) The Interest Factor shall be a variable rate not to exceed the maximum rate allowed under paragraph (2) to be determined annually by the department in consultation with the Office of the Budget. The rate of the Interest Factor for a calendar year shall be the rate necessary to do the following in that year:(i) pay the bond obligations and bond administrative expenses under Article XIV of this act that are due in that year;(ii) replenish amounts which have been drawn from bond reserves under Article XIV of this act;(iii) maintain an adequate debt service coverage ratio;(iv) fund early, optional, mandatory or other refundings, redemptions or purchases of outstanding bonds under Article XIV of this act that will occur in that year;(v) pay the interest on interest-bearing advances under Title XII of the Social Security Act (58 Stat. 790, 42 U.S.C. § 1321 et seq.) that is due in that year; and(vi) repay outstanding advances under Title XII of the Social Security Act.(2) For calendar year 2013 through the year determined under section 301.8(b)(4), the maximum Interest Factor rate shall be one and one-tenth per centum (1.1%). For calendar years following the year determined under section 301.8(b)(4), the maximum Interest Factor rate shall be one per centum (1.0%).(d) Contributions paid by or on behalf of an employer under this act, other than employe contributions under section 301.4, shall be allocated first to the employer's liability under this section. This subsection shall apply to contributions for any calendar quarter that ends at a time when bonds issued under Article XIV are outstanding.(e) In the event the amount of additional contributions collected under this section for a calendar year exceeds the amount necessary for the purposes enumerated in subsection (c) for that year, the department may use such excess contributions for the purposes enumerated in subsection (c) for the following year, and to the extent available, to reduce the amount of additional contributions that would be required for the following year.(f) No Interest Factor shall be required for any year for which funding is not required for any of the purposes enumerated in subsection (c).Amended by P.L. 577 2012 No. 60, § 4, eff. 6/12/2012.1936, Dec. 5, 2nd Sp.Sess., P.L. (1937) 2897, No. 1, § 301.6, added 1983, July 21, P.L. 68, No. 30, § 12, effective Jan. 1, 1984. Amended 1985, July 1, P.L. 96, No. 30, § 5, effective in 60 days.