Subchapter C. NONPROFIT ORGANIZATIONS MAKING PAYMENTS IN LIEU OF CONTRIBUTIONS

   Nonprofit organizations subject to the provisions of this subchapter electing to file a surety bond shall file with the local Field Accounting Office of the Bureau a surety bond equal to 1.0% of the employer’s taxable wages paid for subject employment for the most recent four calendar quarters prior to the election to make payments in lieu of contributions or a surety bond in an amount set by the Department, such bond to be executed by an approved bonding company.

   The provisions of this §  63.93 amended September 24, 1976, 6 Pa.B. 2395. Immediately preceding text appears at serial page (9304).

 (a)  Moneys received. The Department will deposit all moneys received with the State Treasurer, Commonwealth of Pennsylvania. Any interest thereon shall accrue to the employer.

 (b)  Securities received. Securities received will be deposited with the State Treasurer of the Commonwealth. The securities shall be assigned to the Department and be negotiable by the Department at any time. Interest or dividends accruing thereon shall be the property of the owner of the securities.

   The provisions of this §  63.96 reserved February 29, 1980, effective March 1, 1980, 10 Pa.B. 912.

 Any deposit of moneys or securities received will be held until the organization’s liability for payments is terminated. Upon termination of liability the deposit will be returned, minus any amount, including interest and penalty, due the Department. The Department is authorized to sell securities deposited to satisfy any amount due. All securities pledged to the Department but held in escrow will be released through written advice by the Department upon termination of liability as a reimbursing nonprofit employer, but only if all amounts due have been paid.

 A 2% rate will be assigned to employers who elect the reimbursement method of payment and subsequently choose to convert to contributory status. The employer will be treated as a ‘‘new or newly covered’’ employer during the period in which he was in reimbursement status, and this period will not be taken into account for any of the purposes of experience rating. The entry rate of 2% is available only on the occasion of the first conversion from reimbursement to contributory status. Thereafter, the rate of contribution may not be less than the standard rate subject to adjustment under section 301.1 of the Law (43 P. S. §  801.1).

 This section shall supplement the list of payments made into the Unemployment Compensation Fund under section 601 of the Law (43 P. S. §  841), as follows:

   (1)  Payments in lieu of contributions collected under the law.

   (2)  Moneys collected from the Federal Government as reimbursements under section 204 of the Federal-State Extended Compensation Act of 1970 (26 U.S.C.A. §  3301 et seq.).

   This section cited in 34 Pa. Code §  63.94 (relating to filing of security deposit).