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42 PENNSYLVANIA UNEMPLOYMENT COMPENSATION LAW PENNSYLVANIA UNEMPLOYMENT COMPENSATION LAW PENNSYLVANIA UNEMPLOYMENT COMPENSATION LAW

of the preceding calendar year, provided that an employer's solvency fee

for a year shall not be less than twenty-five dollars ($25).

(1) For calendar years 2003, 2004 and 2005, the solvency fee rate shall

be three ten thousandths (.0003).

(2) In 2005 the secretary shall redetermine the solvency fee rate. The

secretary shall redetermine the rate so that the unrounded rate yields

solvency fees approximately equal to the amount of compensation for

which charges are relieved under this section. For purposes of

redetermining the rate, the secretary shall use the amount of

compensation for which charges are relieved under this section paid

during 2003 and 2004 and the amount of wages paid, without regard to

the exclusion in section 4(x)(1), during the same time period by

employers who paid a solvency fee under this section. The rate as

redetermined shall take effect for the next calendar year and shall remain

in effect for three years.

(3) Beginning in 2008 and each fifth year thereafter, the secretary shall

redetermine the solvency fee rate. The secretary shall redetermine

the rate so that the unrounded rate yields solvency fees

approximately equal to the amount of compensation for which

charges are relieved under this section. For purposes of

redetermining the rate, the secretary shall use the amount of

compensation for which charges are relieved under this section paid

during the five calendar years immediately preceding the year in

which the redetermination occurs and the amount of wages paid,

without regard to the exclusion in section 4(x)(1), during the same

time period by employers who paid a solvency fee under this

section. The rate as redetermined shall take effect for the next

calendar year and shall remain in effect for five years.

(4) If the solvency fee rate redetermined under paragraphs (2) and (3)

is not a multiple of one-hundredth of one per cent, it shall be

rounded to the next higher multiple of one-hundredth of one per cent.

(c) Solvency fees paid by employers under this section shall be deposited in the

Unemployment Compensation Fund. Compensation for which charges are

relieved under this section shall not be used in the calculation of the State

adjustment factor under section 301.1(e).