Appeal from the Order of the Employer Accounts Review Board, in case of Re: Valley Forge Military Academy, Account, No. 23-30989.
Brian E. Bennett, with him Greenwell, Porter, Smaltz & Royal, for petitioner.
Robert E. Chernicoff, Assistant Attorney General, for respondent.
Judges Rogers, DiSalle and Craig, sitting as a panel of three. Opinion by Judge Craig.
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Valley Forge Military Academy Foundation, a non-profit corporation, operates a junior college and also
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an academy for secondary education. Both schools operate under the corporate charter of Valley Forge, but maintain separate administrative and academic facilities.
Since January 1, 1972 the staff and faculty of the junior college have been covered under the Unemployment Compensation Law, Act of December 5, 1936, Second Ex. Sess., P.L. (1937) 2897, as amended, 43 P.S. § 751 et seq. The employer's contribution rate for the college employees is the maximum 4%. Section 301.1(a) of the Law, 43 P.S. § 781.1(a).
When the former exemption for employment in secondary education was removed,*fn1 the Technical Service Operations of the Bureau of Employment Security used the 4% rate as Valley Forge's contribution rate for the newly-covered academy employees.
Valley Forge appealed the application of the 4% rate to the new group, asserting that an initial rate of 2% was appropriate under Section 301(a)(4) of the Law, 43 P.S. § 781(a)(4). The Employer Accounts Review Board issued a letter opinion denying the 2% rate, and Valley Forge has petitioned this court for review.
Section 301(a)(4) provides in pertinent part that:
[A]ny employer who becomes newly liable for contributions under this act on or after the first day of January, one thousand nine hundred seventy-two, ...