PennDOT Clarifies Procedures for Unemployment Rate Calculations for Force Account Work
October 28, 2013
PennDOT has informed the Districts of two procedural revisions in the use of the new “Estimated Effective Rate Computation” form” (Form CS-4347CA) which must be used to document the Contractor’s calculation of the unemployment compensation rate to be applied to direct labor cost:
- To maintain confidentiality Contractor business information, the completed form will not be included in the package submitted to ECMS, but will be placed in the project files.
- Direction is provided to deal with the fact that the Contractor’s rate for work performed in the early part of a year may not (for return filing reasons) be known at the time the force account package is submitted for payment.
A copy of the Department’s direction to the Districts bis below.
I wanted to let you know that I informed the Districts today about a couple of “tweaks” involving our new “Estimated Effective Rate Computation” form (i.e. Form CS-4347EER).
- Due to concerns about the confidentiality of the information being provided on Form CS-4347EER, the completed form will not be included in the Force Account documentation package that is scanned and linked to a Work Order Item in ECMS. After verifying that a completed form was included and that the “Total Estimated Effective Rate” computed on the form is equal to the “Unemployment Taxes” rate entered on the Labor Breakdown (Form CS-4347CA), the completed form will be removed from the Force Account package before scanning and placed in the project files.
- The Districts were made aware of the fact that a portion of the information needed to update the Estimated Effective Rate for a new calendar year may not be available until the Contractor or Subcontractor files its Form 940 Federal Unemployment Tax return for the prior calendar year, which they have until April 15th to do. Therefore, as an example, documentation packages submitted for Force Account work performed in early 2014 that do not include a completed Form CS-4347EER for Calendar Year 2014 will not be rejected and returned to the Contractor. An updated Form CS-4347EER for Calendar Year 2014 need only be included in documentation packages submitted for Force Account work performed after April 15, 2014.
Edward H. Fuhrer | Senior Civil Engineer Supervisor
PA Department of Transportation
Bureau of Project Delivery
Highway Delivery Division
Contract Management Section
P.O. Box 2855 | Harrisburg, PA 17105-2855
Phone: 717.787.7034 | Fax: 717.783.7969