reglab/statecodes huggingface dataset:
Pennsylvania Code › Title 58 - RECREATION › Part VII - GAMING CONTROL BOARD › Subpart Q - Sports Wagering › Chapter 1407a - SPORTS WAGERING TESTING AND CONTROLS › Section 1407a.2 - Definitions

Current through Register Vol. 54, No. 28, July 13, 2024
The following words and terms, when used in this chapter,
					 have the following meanings, unless the context clearly indicates otherwise:
Authentication process
-A method used by a
					 system to verify the validity of software. The method requires calculation of
					 an output digest, which is compared to a secure embedded value. The minimum
					 output digest shall be of 128-bit complexity. Software shall be deemed to have
					 been authenticated if the calculated digest equals the secure embedded value.
Communication technology
-The methods used
					 and the components employed to facilitate the transmission of information
					 including transmission and reception systems based on wire, cable, radio,
					 microwave, light, optics or computer data networks.
Point of sale system
-All the hardware,
					 software and communications that comprises a stand-alone or integrated system
					 capable of accepting sports wagers by means of terminals attended to by a
					 cashier and is located at a sports wagering certificate holder's approved
					 locations.
Self-service kiosks
-Unattended
					 self-service booths or self-standing structure with computers, including
					 touch-screen computers, at which a patron can place sports wagers and that
					 dispenses sports wagering tickets/vouchers.
Sports wagering account
-Electronic account
					 that may be established by a patron for the purpose of sports wagering by means
					 of a sports wagering certificate holder's or sports wagering operator's
					 interactive sports wagering web site or interactive sports wagering mobile
					 application under these regulations.
Sports wagering communication
-The
					 transmission of a wager between a point of origin and a point of reception by
					 aid of a communications technology.
Sports wagering device and associated
					 equipment
-A self-service kiosk, point of sale system or other device,
					 including associated equipment, used to accept sports wagering as permitted for
					 use in this Commonwealth by the Board.
Sports wagering interactive system
-All
					 hardware, software and communications that comprise a type of server-based
					 sports wagering system for the purpose of offering authorized interactive or
					 mobile sports wagering in this Commonwealth when authorized by the Board.
Sports wagering system
-All sports wagering
					 devices, equipment, communication technology, software and hardware approved by
					 the Board to conduct sports wagering in this Commonwealth.
Ticket/voucher redemption
					 device
-Unattended self-service booths or self-standing structures with
					 computers, including touch-screen computers, at which a patron can redeem
					 sports wagering tickets/vouchers and that dispense winnings in the form of cash
					 or cash equivalent.
Pennsylvania Code › Title 58 - RECREATION › Part VII - GAMING CONTROL BOARD › Subpart Q - Sports Wagering › Chapter 1407a - SPORTS WAGERING TESTING AND CONTROLS › Section 1407a.3 - Testing and approval generally

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
				  Prior to operating a retail sportsbook or a sportsbook through a web site or
				  mobile application as a form of interactive gaming, all sports wagering devices
				  and software used in conjunction with these operations must be submitted to the
				  Board's Office of Gaming Laboratory Operations for review and testing and be
				  approved by the Board.
(b) For
				  purposes of this section, sports wagering devices and software that shall be
				  submitted for testing and approval include:
(1) Self-service kiosks.
(2) Point of sale systems.
(3) Ticket/voucher redemption
				  devices.
(4) Sports wagering
				  interactive system components, including all hardware, software and associated
				  equipment that comprise a type of server-based sports wagering system for the
				  purpose of offering authorized sports wagering, mobile sports wagering or
				  interactive sports wagering.
(5)
				  Other related devices or systems as required by the Board.
Pennsylvania Code › Title 58 - RECREATION › Part VII - GAMING CONTROL BOARD › Subpart Q - Sports Wagering › Chapter 1407a - SPORTS WAGERING TESTING AND CONTROLS › Section 1407a.4 - Wagering device requirements generally

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Wagering device programs shall contain
				  sufficient information to identify the software and revision level of the
				  information stored on the wagering device.
(b) Wagering devices shall have the ability
				  to authenticate that all critical components being utilized are valid upon
				  installation of the software, each time the software is loaded for use and on
				  demand as required by the Board. Critical components may include wagering
				  information, elements that control the communications with the sports wagering
				  system or other components that are needed to ensure proper operation of the
				  wagering device. In the event of a failed authentication (that is, program
				  mismatch or authentication failure), the wagering device shall cease all
				  wagering operations and display an appropriate error message. The sports
				  wagering system shall have the ability to disable the wagering device upon any
				  unsuccessful authentication.
(c)
				  Wagering devices shall be capable of performing the following functions:
(1) Creating wagers.
(2) Settling wagers.
(3) Voiding wagers.
(4) Cancelling wagers.
Pennsylvania Code › Title 58 - RECREATION › Part VII - GAMING CONTROL BOARD › Subpart Q - Sports Wagering › Chapter 1407a - SPORTS WAGERING TESTING AND CONTROLS › Section 1407a.5 - Self-service kiosks and point of sale system requirements

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Self-service kiosks and point of sale
				  devices shall have an identification badge affixed to the exterior of the
				  device by the manufacturer. The identification badge shall not be removable
				  without leaving evidence of tampering. This badge shall include all of the
				  following minimum information:
(1) The
				  complete name of the manufacturer or some appropriate abbreviation for
				  same.
(2) A unique serial
				  number.
(3) The self-service kiosk
				  or point of sale device model number.
(4) The date of manufacture.
Pennsylvania Code › Title 58 - RECREATION › Part VII - GAMING CONTROL BOARD › Subpart Q - Sports Wagering › Chapter 1407a - SPORTS WAGERING TESTING AND CONTROLS › Section 1407a.6 - Ticket/voucher requirements

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
				  Tickets/vouchers generated by a self-service kiosk or by a point of sale system
				  shall include all of the following general information:
(1) Name and address of the party issuing the
				  ticket/voucher.
(2) A barcode or
				  similar symbol or marking, as approved by the Board, corresponding to a unique
				  wager identifier.
(3) Method of
				  redeeming a winning ticket/voucher by means of mail.
(4) Identification of the self-service kiosk
				  or cashier at the point of sale device that generated the
				  ticket/voucher.
Pennsylvania Code › Title 58 - RECREATION › Part VII - GAMING CONTROL BOARD › Subpart Q - Sports Wagering › Chapter 1407a - SPORTS WAGERING TESTING AND CONTROLS › Section 1407a.7 - Ticket/voucher redemption requirements

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Winning sports wagering tickets/vouchers
				  shall be redeemed by a writer or a self-service kiosk after verifying the
				  validity of the wagering ticket through the sports wagering system. The writer
				  or a self-service kiosk shall cause the sports wagering system to
				  electronically redeem and cancel the wagering ticket upon redemption.
(b) A patron may redeem by mail a winning
				  sports wagering ticket/voucher to the address provided thereon in accordance
				  with the sports wagering certificate holder's or sports wagering operator's
				  internal controls.
(c) A patron may
				  redeem a winning sports wagering ticket/voucher issued at a sports wagering
				  certificate holder's main retail sportsbook at any of the sports wagering
				  certificate holder's non-primary sports wagering locations or at sports
				  wagering area of a Category 4 licensed facility, and vice versa.
(d) Self-service kiosks shall be capable of
				  recognizing payment limitations or payment errors such as bill out jams and
				  insufficient funds. When a payment limitation or error occurs, the self-service
				  kiosk shall be designed to electronically record the payout limitation or error
				  and perform all of the following:
(1) Reject
				  the transaction.
(2) Issue an error
				  receipt.
(3) Issue a replacement
				  sports wagering ticket/voucher.
Pennsylvania Code › Title 58 - RECREATION › Part VII - GAMING CONTROL BOARD › Subpart Q - Sports Wagering › Chapter 1407a - SPORTS WAGERING TESTING AND CONTROLS › Section 1407a.8 - Sports wagering interactive system requirements

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Sports wagering platforms must adhere to
				  the requirements in Chapter 809a (relating to interactive gaming platform
				  requirements) of these regulations.
(b) Sports wagering interactive systems must
				  adhere to the requirements in Chapter 810a (relating to interactive gaming
				  testing and controls) of the Board's regulations.
Pennsylvania Code › Title 58 - RECREATION › Part VII - GAMING CONTROL BOARD › Subpart Q - Sports Wagering › Chapter 1407a - SPORTS WAGERING TESTING AND CONTROLS › Section 1407a.9 - Sports wagering system general requirements

Current through Register Vol. 54, No. 28, July 13, 2024
(a) A sports wagering system shall, at least
				  once every 24 hours, perform a self-authentication process on all software used
				  to offer, record and process wagers to ensure there have been no unauthorized
				  modifications. In the event of an authentication failure, at a minimum, the
				  sports wagering system shall immediately notify the certificate holder's or
				  operator's sports wagering manager and the Board within 24 hours. The results
				  of all self-authentication attempts shall be recorded by the system and
				  maintained for a period of not less than 90 days.
(b) The sports wagering certificate holder or
				  sports wagering operator operating the sports wagering system shall provide to
				  the Board real time in-person administrative access and remote access to
				  wagering transaction and related data as deemed necessary in a manner approved
				  by the Board. A sports wagering certificate holder or sports wagering operator
				  shall include in its internal controls required under §
										1408a.3 (relating to internal
				  controls) the policies and procedures that will be implemented regarding real
				  time in-person administrative read-only access and remote read-only access to
				  the sports wagering system by the Board.
(c) A sports wagering system shall be capable
				  of preventing any sports wager in excess of $10,000 or making a payout in
				  excess of $10,000 until authorized by the sports wagering manager. A sports
				  wagering certificate holder or sports wagering operator shall include in its
				  internal controls required under §
										1408a.3 the policies and
				  procedures that will be implemented regarding those wagers and
				  payouts.
Pennsylvania Code › Title 58 - RECREATION › Part VII - GAMING CONTROL BOARD › Subpart Q - Sports Wagering › Chapter 1408a - SPORTS WAGERING ACCOUNTING AND INTERNAL CONTROLS › Section 1408a.1 - Scope

Current through Register Vol. 54, No. 28, July 13, 2024
To ensure the integrity and security of sports wagering
					 operations in this Commonwealth, the requirements of this chapter apply to all
					 sports wagering certificate holders and sports wagering operators seeking to
					 offer sports wagering to patrons in this Commonwealth. The requirements in this
					 chapter supplement, where not in conflict with and where applicable, existing
					 Board regulations in Subparts E and L (relating to slot machine, table game and
					 associated equipment testing and control; accounting and internal controls; and
					 interactive gaming) and Chapter 465a (relating to accounting and internal
					 controls) applicable to slot machine licensees, interactive gaming certificate
					 holders and interactive gaming operators unless the context clearly indicates
					 otherwise.
Pennsylvania Code › Title 58 - RECREATION › Part VII - GAMING CONTROL BOARD › Subpart Q - Sports Wagering › Chapter 1408a - SPORTS WAGERING ACCOUNTING AND INTERNAL CONTROLS › Section 1408a.2 - Definitions

Current through Register Vol. 54, No. 28, July 13, 2024
The following words and terms, when used in this chapter,
					 have the following meanings, unless the context clearly indicates
					 otherwise:
Integrity monitoring
-Observing sports
					 wagering to identify suspicious wagering activity or unusual wagering activity
					 to then report the activities to required parties.
Personal identifiable information
-Any data
					 or information that can be used, on its own or with other data or information,
					 to identify, contact or otherwise locate a player or registered player,
					 including a player's or registered player's name, address, date of birth and
					 social security number.
Risk management
-Processes and tools that
					 sports wagering certificate holders or sports wagering operators use to manage
					 the risk and liabilities associated with sports wagering.
Sports wagering device and associated
					 equipment
-Self-service kiosk, point of sale system or other device,
					 including associated equipment, used to accept sports wagering as permitted for
					 use in this Commonwealth by the Board.
Sports wagering system
-Sports wagering
					 devices, equipment, communication technology, software and hardware approved by
					 the Board to conduct sports wagering in this Commonwealth.
Suspicious wagering activity
-Unusual
					 wagering activity that cannot be explained and is indicative of match fixing,
					 the manipulation of an event, misuse of inside information or other prohibited
					 activity.
Unusual wagering activity
-Abnormal
					 wagering activity exhibited by patrons and deemed by the sports wagering
					 certificate holder or sports wagering operator as a potential indicator of
					 suspicious activity which may include the size of a patron's wager or increased
					 wagering volume on a particular event or wager type.
Pennsylvania Code › Title 58 - RECREATION › Part VII - GAMING CONTROL BOARD › Subpart Q - Sports Wagering › Chapter 1408a - SPORTS WAGERING ACCOUNTING AND INTERNAL CONTROLS › Section 1408a.6 - Segregation of bank accounts

Current through Register Vol. 54, No. 28, July 13, 2024
(a) A
				  sports wagering certificate holder or sports wagering operator shall maintain a
				  domestic bank account for player's funds separate from all other operating
				  accounts to ensure the security of funds held in the player's sports wagering
				  accounts.
(b) The balance
				  maintained in this account shall be greater than or equal to the sum of the
				  daily ending cashable balance of all player sports wagering accounts and unpaid
				  wagers.
(c) A sports wagering
				  certificate holder or sports wagering operator shall have unfettered access to
				  all player sports wagering account and transaction data to ensure the amount of
				  funds held in its independent account is sufficient. A sports wagering
				  certificate holder's or sports wagering operator's Chief Financial Officer
				  shall file a quarterly attestation with the Board, unless otherwise directed by
				  the Board, that the funds have been safeguarded under this section.
Pennsylvania Code › Title 58 - RECREATION › Part VII - GAMING CONTROL BOARD › Subpart Q - Sports Wagering › Chapter 1408a - SPORTS WAGERING ACCOUNTING AND INTERNAL CONTROLS › Section 1408a.7 - Sports wagering certificate holder's or sports wagering operator's organization

Current through Register Vol. 54, No. 28, July 13, 2024
(a) A
				  sports wagering certificate holder's or sports wagering operator's systems of
				  internal controls must include organization charts depicting segregation of
				  functions and responsibilities and descriptions of the duties and
				  responsibilities for each position shown on each organization chart. Sports
				  wagering certificate holder or sports wagering operator shall be permitted,
				  except as otherwise provided in this section, to tailor organizational
				  structures to meet the needs or policies of a particular management philosophy.
				  A sports wagering certificate holder's or sports wagering operator's
				  organization charts must provide for:
(1) A
				  system of personnel and chain of command which permits management and
				  supervisory personnel to be held accountable for actions or omissions within
				  their areas of responsibility.
(2)
				  The segregation of incompatible functions, duties and responsibilities so that
				  no employee is in a position to both commit an error or perpetrate a fraud and
				  to conceal the error or fraud in the normal course of the employee's
				  duties.
(3) The performance of all
				  functions, duties and responsibilities in accordance with sound financial
				  practices by qualified personnel.
(4) The areas of responsibility which are not
				  so extensive as to be impractical for an individual to
				  monitor.
Pennsylvania Code › Title 58 - RECREATION › Part VII - GAMING CONTROL BOARD › Subpart Q - Sports Wagering › Chapter 1408a - SPORTS WAGERING ACCOUNTING AND INTERNAL CONTROLS › Section 1408a.8 - Risk management

Current through Register Vol. 54, No. 28, July 13, 2024
(a) A
				  sports wagering certificate holder or sports wagering operator must implement
				  risk management procedures. These procedures may be provided in-house by a unit
				  capable of performing this function with appropriate segregation of functions
				  and reporting duties, or by an independent third party certified by the Board
				  as required under §
										1405a.4(a)(4)
				  (relating to qualification of individuals and entities of certified sports
				  wagering gaming service providers).
(b) A sports wagering certificate holder's or
				  sports wagering operator's internal controls must contain a description of its
				  risk management framework including all of the following:
(1) Automated and manual risk management
				  procedures.
(2) User access
				  controls for all sportsbook personnel.
(3) Information regarding segregation of
				  duties.
(4) Information regarding
				  fraud detection.
(5) Controls
				  ensuring regulatory compliance.
(6)
				  Description of anti-money laundering compliance standards.
(7) Description of all software applications
				  that comprise the sports wagering system.
(8) Description of all types of wagers
				  available to be offered by the sports wagering system.
(9) Description of all integrated third-party
				  systems.
(10) Description of the
				  policies and procedures to be followed in the event that an error occurs in the
				  offering of an event or wager, including cancellation of the wagers placed due
				  to error, which shall be subject to Board approval.
(11) Any other information required by the
				  Board.
Pennsylvania Code › Title 58 - RECREATION › Part VII - GAMING CONTROL BOARD › Subpart Q - Sports Wagering › Chapter 1408a - SPORTS WAGERING ACCOUNTING AND INTERNAL CONTROLS › Section 1408a.9 - Integrity monitoring

Current through Register Vol. 54, No. 28, July 13, 2024
(a) A
				  sports wagering certificate holder or sports wagering operator must implement
				  integrity monitoring procedures. These procedures may be provided in-house by a
				  unit capable of performing this function with appropriate segregation of
				  functions and reporting duties or by an independent third party certified by
				  the Board as required under §
										1405a.1(a)(4)
				  (relating to general sports wagering gaming service provider
				  requirements).
(b) A sports
				  wagering certificate holder or sports wagering operator must share information
				  of unusual wagering activity or other suspicious wagering activity regarding
				  sports wagering in this Commonwealth with:
(1)
				  Other sports wagering certificate holders or sports wagering
				  operators.
(2) The
				  Board.
Pennsylvania Code › Title 58 - RECREATION › Part VII - GAMING CONTROL BOARD › Subpart Q - Sports Wagering › Chapter 1408a - SPORTS WAGERING ACCOUNTING AND INTERNAL CONTROLS › Section 1408a.10 - Mandatory logging

Current through Register Vol. 54, No. 28, July 13, 2024
A sports wagering certificate holder's or sports wagering
					 operator's sports wagering system must comply with the mandatory logging
					 requirements in Subpart L (relating to interactive gaming) of the Board's
					 regulations.
Pennsylvania Code › Title 58 - RECREATION › Part VII - GAMING CONTROL BOARD › Subpart Q - Sports Wagering › Chapter 1408a - SPORTS WAGERING ACCOUNTING AND INTERNAL CONTROLS › Section 1408a.11 - Records/data retention requirements

Current through Register Vol. 54, No. 28, July 13, 2024
A sports wagering certificate holder's or sports wagering
					 operator's sports wagering system must comply with the record/data retention
					 requirements in Chapter 465a (relating to accounting and internal controls) and
					 Subpart L (relating to interactive gaming) of the Board's
					 regulations.
Pennsylvania Code › Title 58 - RECREATION › Part VII - GAMING CONTROL BOARD › Subpart Q - Sports Wagering › Chapter 1408a - SPORTS WAGERING ACCOUNTING AND INTERNAL CONTROLS › Section 1408a.12 - Required reports

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Nothing in
				  this section shall be interpreted to prohibit a retail sportsbook from
				  accepting anonymous sports wagers at self-service kiosks or point of sale
				  terminals. These wagers should be included in the required reports detailed in
				  this section and identified as "anonymous player" or a similar
				  identifier.
(b) A sports wagering
				  certificate holder's or sports wagering operator's sports wagering system must
				  comply with the reporting requirements in Subpart L (relating to interactive
				  gaming) of the Board's regulations as it pertains to interactive sports
				  wagering through a web site or mobile application.
(c) A sports wagering certificate holder or
				  sports wagering operator must generate reports specific to its sports wagering
				  operations as specified by the Board that shall include, at a minimum:
(1) The report title.
(2) The date or time period of activity, or
				  description "as of" a point in time.
(3) The date and time the report was
				  generated.
(4) Page numbering,
				  indicating the current page and total number of pages.
(5) Subtotals and grand totals as required by
				  the Board.
(6) A description of any
				  filters applied to the data presented in the document.
(7) Column and row titles, if
				  applicable.
(8) The name of the
				  sports wagering certificate holder or sports wagering operator.
Pennsylvania Code › Title 58 - RECREATION › Part VII - GAMING CONTROL BOARD › Subpart Q - Sports Wagering › Chapter 1408a - SPORTS WAGERING ACCOUNTING AND INTERNAL CONTROLS › Section 1408a.13 - Accounting controls for the sports wagering area

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The assets for which each ticket writer
				  is responsible shall be maintained on an imprest basis. A ticket writer shall
				  not permit any other person to access his or her imprest inventory.
(b) A ticket writer shall begin a shift with
				  an imprest amount of currency and coin to be known as the "sports wagering
				  inventory." No funds shall be added to or removed from the sports wagering
				  inventory during the shift, except:
(1) In
				  collection of sports wagering wagers.
(2) To make change for a patron buying a
				  sports wagering ticket.
(3) In
				  collection for the issuance of sports wagering vouchers.
(4) In payment of winning or properly
				  cancelled or refunded sports wagering tickets.
(5) In payment of sports wagering
				  vouchers.
(6) In exchanges with the
				  cage, a satellite cage or sports wagering area vault supported by proper
				  documentation, which documentation shall be sufficient for accounting
				  reconciliation purposes.
Pennsylvania Code › Title 58 - RECREATION › Part VII - GAMING CONTROL BOARD › Subpart Q - Sports Wagering › Chapter 1408a - SPORTS WAGERING ACCOUNTING AND INTERNAL CONTROLS › Section 1408a.14 - Sports wagering accounts

Current through Register Vol. 54, No. 28, July 13, 2024
A sports wagering certificate holder's or sports wagering
					 operator's sports wagering system shall comply with the player account
					 requirements in Subpart L (relating to interactive gaming) of the Board's
					 regulations as it pertains to sports wagering accounts used by a patron to
					 participate in interactive or mobile sports wagering.
Pennsylvania Code › Title 58 - RECREATION › Part VII - GAMING CONTROL BOARD › Subpart Q - Sports Wagering › Chapter 1409a - SPORTS WAGERING ADVERTISEMENTS, PROMOTIONS AND TOURNAMENTS › Section 1409a.1 - General requirements

Current through Register Vol. 54, No. 28, July 13, 2024
A sports wagering certificate holder or sports wagering
					 operator must comply with the advertisement and promotions requirements of
					 Subparts C-E, I and L regarding its retail and interactive or mobile
					 sportsbooks, including those provisions that require sports wagering
					 certificate holders or sports wagering operators to submit all information to
					 the Board as required by Subparts C-E, I and L.
Pennsylvania Code › Title 58 - RECREATION › Part VII - GAMING CONTROL BOARD › Subpart Q - Sports Wagering › Chapter 1410a - SPORTS WAGERING COMPULSIVE AND PROBLEM GAMBLING REQUIREMENTS › Section 1410a.1 - General requirements

Current through Register Vol. 54, No. 28, July 13, 2024
(a) A
				  sports wagering certificate holder or sports wagering operator must comply with
				  the compulsive and problem gambling provisions of Subparts I and L (relating to
				  compulsive and problem gambling; and interactive gaming) regarding its retail
				  and interactive or mobile sportsbooks.
(b) A sports wagering certificate holder or
				  sports wagering operator shall amend its current compulsive gaming plans and
				  programs to include sports wagering activities.
Pennsylvania Code › Title 58 - RECREATION › Part VII - GAMING CONTROL BOARD › Subpart Q - Sports Wagering › Chapter 1411a - SPORTS WAGERING SELF-EXCLUDED PERSONS › Section 1411a.1 - General requirements

Current through Register Vol. 54, No. 28, July 13, 2024
(a) A
				  sports wagering certificate holder or sports wagering operator must comply with
				  the self-exclusion provisions of Subparts I and L (relating to compulsive and
				  problem gambling; and interactive gaming) regarding its retail and interactive
				  or mobile sportsbooks.
(b) A sports
				  wagering certificate holder or sports wagering operator shall amend its current
				  self-exclusion plans and programs to include sports wagering
				  activities.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 1 - PRELIMINARY PROVISIONS › Section 1.1 - Definitions

Current through Register Vol. 54, No. 28, July 13, 2024
The following words and terms, when used in this part, have
					 the following meanings, unless the context clearly indicates otherwise:
Department
-The Department of Revenue of
					 the Commonwealth.
FC
-The Fiscal Code (72 P. S.
					 §§
											1-1804).
IRC
-The Internal Revenue Code of 1986,
					 including amendments under the Tax Reform Act of 1986 (26 U.S.C.A. §§
											1 -
					 7872).
Secretary
-The Secretary of the
					 Department.
TRC
-The Tax Reform Code of 1971
					 (72
					 P. S. §§
											7101-10004).
The provisions of this §
												1.1 issued under section 270 of
						the act of March 4, 1971 (P.L. 6, No. 2) (72 P.S. §
													7270); amended under section 408 of the act
						of March 4, 1971 (P.L. 6, No. 2) (72 P.S. §
													7408).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 2 - EMPLOYMENT INCENTIVE PAYMENT CREDIT › Section 2.1 - General explanation

Current through Register Vol. 54, No. 28, July 13, 2024
Under the act of April 8, 1982 (P. L. 231, No. 75)
					 (62
					 P. S. §§
											201,
					 403,
					 404.1,
					 405.1,
					 405.2,
					 408,
					 408.1,
					 422,
					 423,
					 432,
					 432.2-432.7A,
					 432.9,
					 432.11,
					 432.12,
					 432.15,
					 432.16,
					 432.19-432.21,
					 442.1,
					 443.6,
					 475,
					 481,
					 487 and
					 489) a tax credit is
					 available for persons who employ certain welfare recipients, with additional
					 tax credit for those who provide day care services for the welfare recipient's
					 child or children. This chapter explains the scope and effect of the employment
					 incentive payment tax credit (the "EIP credit"), the manner in which it is
					 validated, procedures established by the Department for verification and
					 application of tax credits, and the manner in which they may be used by
					 employers.
The provisions of this §
												2.1 amended under section 491 of
						the Public Welfare Code (62 P. S. §
													491); and section 6 of the Fiscal Code
						(72
						P. S. §
													6).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 2 - EMPLOYMENT INCENTIVE PAYMENT CREDIT › Section 2.1a - Definitions

Current through Register Vol. 54, No. 28, July 13, 2024
The following words and terms, when used in this chapter,
					 have the following meanings, unless the context clearly indicates
					 otherwise:
Closely-related person
-The term includes
					 the following:
(i) A son, daughter or
				  a descendant of a son or daughter.
(ii) A stepson or stepdaughter.
(iii) A brother, sister, stepbrother or
				  stepsister.
(iv) A father, mother
				  or an ancestor of either.
(v) A
				  stepfather or stepmother.
(vi) A
				  nephew or niece.
(vii) An uncle or
				  aunt.
(viii) A son-in-law,
				  daughter-in-law, father-in-law, mother-in-law, brother-in-law or
				  sister-in-law.
EIP
-The Employment Incentive Payment
					 credit program.
The provisions of this §
												2.1a issued under section 506 of
						The Administrative Code of 1929 (71 P. S. §
													186); section 491(e) of the Public Welfare
						Code (62 P. S. §
													491(e)); and section
						1701-A(e) of the Tax Reform Code of 1971 (72 P. S. §
													8701-A(e)).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 2 - EMPLOYMENT INCENTIVE PAYMENT CREDIT › Section 2.2 - Taxes applicable

Current through Register Vol. 54, No. 28, July 13, 2024
Tax credits are available as a credit against the taxes
					 imposed by Article III of the TRC (72 P. S. §§
											7301-7361), the personal income tax, with
					 respect to employers who are individuals, partnerships or proprietorships. The
					 credit is available with respect to taxes imposed by Articles IV, VII, VIII and
					 IX of the TRC (72 P. S. §§
											7401-7412,
					 7701-7706,
					 7801-7806 and
					 7901-7906) with respect to
					 employers which are corporations, banks and financial institutions, and title
					 insurance and trust companies as well as against the tax imposed by the Mutual
					 Thrift Institutions Tax Act (72 P. S. §§
											1986.1-1986.6) with respect to savings and
					 loan company employers. The credit may be used in the year in which it is
					 validated or may be carried over by the taxpayer and used in any of the 3
					 subsequent years.
The provisions of this §
												2.2 amended under section 506 of
						The Administrative Code of 1929 (71 P. S. §
													186); and section 491(e) of the Public
						Welfare Code (62 P. S. §
													491(e)); and section
						1701-A(e) of the Tax Reform Code of 1971 (72 P. S. §
													8701-A(e)).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 2 - EMPLOYMENT INCENTIVE PAYMENT CREDIT › Section 2.3 - Issuance of certificate (Form REV-1601)

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The issuance of EIP certificates and
				  verification of entitlement thereto is the responsibility of the Department of
				  Public Welfare. The criteria for issuance of EIP certificates is established by
				  the act of December 19, 1985 (P. L. 356, No. 102) (72 P. S. §
											8701-A) and by 55 Pa. Code (relating to
				  Public Welfare).
(b) An EIP Program
				  Certificate shall be issued upon request to an employer who hires a person who
				  is receiving Temporary Assistance to Needy Families or any form of General
				  Assistance at the time of employment. The employer shall request the
				  certificate from the Department of Public Welfare in writing no later than 21
				  days following the actual date upon which the newly-employed welfare recipient
				  began work. Requests shall be considered to be timely in compliance with this
				  subsection if either:
(1) Received on and
				  date-stamped by a Department of Public Welfare-approved facsimile machine,
				  computer or other electronic device no later than 21 days following the actual
				  date the person began work.
(2)
				  Postmarked by the United States Postal Service no later than 21 days following
				  the actual date the person began work.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 2 - EMPLOYMENT INCENTIVE PAYMENT CREDIT › Section 2.4 - Amount of credit

Current through Register Vol. 54, No. 28, July 13, 2024
The EIP credit shall be equal to 30% of the first $6,000 of
					 qualified first-year wages for the first year of employment, 20% of the first
					 $6,000 of wages for the second year of employment, and 10% of the first $6,000
					 of wages for the third year of employment. If the employer provides or pays for
					 approved day care services for a child of the employe, the employer shall be
					 eligible for an additional credit of $600 for the first year of employment,
					 $500 for the second year of employment, and $400 for the third year of
					 employment. For purposes of this chapter, the term "wages" will include
					 salary.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 2 - EMPLOYMENT INCENTIVE PAYMENT CREDIT › Section 2.5 - Total limit of credit against tax

Current through Register Vol. 54, No. 28, July 13, 2024
An employer may not use EIP credits exceeding 90% of its
					 tax liability in a given year; however, excess EIP credits may be applied to
					 any of the 3 immediate succeeding years if total EIP credits applied in a year
					 do not exceed 90% of its tax liability for that year. For the purposes of this
					 section, "tax liability" is defined as the tax liability less credits not
					 prepaid in the form of withholding, estimated or tentative tax
					 prepayments.
For example:
(1) On July 15, 19X0, John Taxpayer hires
				  Employe at $3.35 an hour. Total wages paid until December 31, 19X0 amount to
				  $3,334. On April 15, 19X1 Taxpayer files his personal income tax and his (line
				  12) income tax liability is $1,200. He has no other credits to offset against
				  this liability. To calculate the actual credit to be taken, the taxpayer must
				  first prorate the maximum annual wage allowance for the partial year. To
				  accomplish this, he takes the proration factor (in this case 5/12, based on 5
				  full months of employment) and multiplies it times the maximum annual wage
				  allowance ($6,000). Accordingly, the taxpayer's maximum annual wage allowance
				  for credit purposes would be $2,500. Therefore, the taxpayer's actual credit
				  would be $2,500 x 30% or $750 (since $750 does not exceed 90% of his tax
				  liability).
During the second taxable year, the employe was paid $3,634
					 in wages from January 1, 19X1 to July 14, 19X1 and $4,000 in wages from July
					 15, 19X1 to December 31, 19X1. The taxpayer's EIP credit for 19X1 is $1,550,
					 computed as follows:
Remaining maximum first year qualifiedwages
								($3,500) x 30%=
$1,050
Total qualified second year wages proratedas above
								($2,500) x 20%=
$ 500
Total
$1,550
On April 15, 19X2, the Taxpayer's (line 12) personal income
					 tax liability is $1,020. In addition, the taxpayer has an out-of-State credit
					 of $770. To arrive at the Taxpayer's actual tax credit, the Taxpayer would
					 subtract the out-of-State credit ($770) from his tax liability ($1,020),
					 resulting in a tax liability of $250. The credit which may be taken would then
					 be $225 ($250 x 90%). The Taxpayer may carry over the remainder of this credit
					 ($1,550-$225 or $1,325) and use it in any of the 3 subsequent years.
(2) Taxpayer Corporation has an
				  EIP credit of $1,800. Taxpayer's page 1 Schedule Line 6 or 14 corporation net
				  income tax is $2,500 and it has a Neighborhood Assistance Credit of $1,000.
				  Therefore, Taxpayer Corporation has an EIP credit of $1,350. ($2,500-$1,000=
				  $1,500 x 90%). The corporation may carry over the remainder of its credit
				  ($1,800-$1,350 or $450) and use it in any of the 3 subsequent years.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 2 - EMPLOYMENT INCENTIVE PAYMENT CREDIT › Section 2.6 - Qualification for and computation of credit

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Qualification for
				  credit.
(1) The employer is not
				  qualified to claim the credit until employment has continued for at least 1
				  full year, unless prior thereto, the employe:
(i) Has voluntarily left the employment of
				  the employer.
(ii) Becomes disabled
				  or dies.
(iii) Has been terminated
				  for cause-the termination for cause as defined by the Department of Labor and
				  Industry Office of Employment Security Regulations and Standards. See section
				  402(e) of The Unemployment Compensation Law (43 P. S. §
													802(e)).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 2 - EMPLOYMENT INCENTIVE PAYMENT CREDIT › Section 2.7 - Application of credits

Current through Register Vol. 54, No. 28, July 13, 2024
(a) An employer
				  is entitled to claim the EIP credit only against a tax which he is required to
				  pay as an employer. Thus, a corporate employer, other than a Pennsylvania S
				  Corporation employer, may not assign an EIP credit to a shareholder for use as
				  a credit against the shareholder's personal income tax. Similarly, a parent
				  corporation may not assign an EIP credit to a subsidiary corporation or
vice versa
. Further, an employer may not use EIP credits
				  against taxes withheld from employes.
(b) Taxpayers who are required to prepay
				  their taxes may apply EIP credits against the payments.
(c) In the case of a partnership the EIP
				  credit shall be allocated among the partners as income is allocated.
(d) Married taxpayers who wish to use the EIP
				  credit against personal income tax are required to file a separate tax report
				  and may not file jointly with a spouse.
(e) In computing wages as a business expense
				  for State tax purposes, the wage cost item shall be reduced by any EIP credit
				  taken by the employer and the Federal wage cost item, if also used for State
				  purposes, shall be increased by the Federal Targeted Jobs Tax Credit taken by
				  the employer.
(f) In the case of a
				  Pennsylvania S Corporation, the EIP credit shall be allocated among the
				  shareholders as income is allocated.
The provisions of this §
												2.7 amended under section 506 of
						The Administrative Code of 1929 (71 P. S. §
													186); section 491(e) of the Public Welfare
						Code (62 P. S. §
													491(e)); and section
						1701-A(e) of the Tax Reform Code of 1971 (72 P. S. §
													8701-A(e)).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 2 - EMPLOYMENT INCENTIVE PAYMENT CREDIT › Section 2.8 - Accounting for credits

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
				  [Reserved].
(b) If an employe
				  terminates employment prior to the expiration of 3 years, the employer shall
				  notify the Department at the time of tax filing by indicating the employe's
				  termination date and reason for termination in the appropriate date and reason
				  for termination in the appropriate section of the EIP certificate.
(c) The employer shall maintain the
				  certificate (Form REV-1601) and copies of W-2 Forms issued to the employe for
				  the same period of time that the employer is required to maintain tax
				  records.
The provisions of this §
												2.8 amended under section 506 of
						The Administrative Code of 1929 (71 P. S. §
													186); section 491(e) of the Public Welfare
						Code (62 P. S. §
													491(e)); and section
						1701-A(e) of the Tax Reform Code of 1971 (72 P. S. §
													8701-A(e)).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 2 - EMPLOYMENT INCENTIVE PAYMENT CREDIT › Section 2.9 - Returns and reports

Current through Register Vol. 54, No. 28, July 13, 2024
Copies of certificates (Forms REV-1601) and W-2 Forms
					 relating thereto which have been issued by the employer, together with other
					 supporting information as the Department may require, shall accompany each tax
					 return with respect to which an EIP credit is claimed.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 2 - EMPLOYMENT INCENTIVE PAYMENT CREDIT › Section 2.10 - Verification of credit

Current through Register Vol. 54, No. 28, July 13, 2024
The Department will not allow an EIP credit claimed by an
					 employer unless the credit is verified by the Department's receipt of an EIP
					 certificate which:
(1) Was properly
				  issued by the Department of Public Welfare.
(2) Contains information required to be
				  provided by the employer.
The provisions of this §
												2.10 issued under section 506 of
						The Administrative Code of 1929 (71 P. S. §
													186); section 491(e) of the Public Welfare
						Code (62 P. S. §
													491(e)); and section
						1701-A(e) of the Tax Reform Code of 1971 (72 P. S. §
													8701-A(e)).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 2 - EMPLOYMENT INCENTIVE PAYMENT CREDIT › Section 2.11 - Appeals

Current through Register Vol. 54, No. 28, July 13, 2024
Determinations made with respect to the employment
					 incentive payments provided in this section may be reviewed and appealed in the
					 same manner which the law provides for appealing and disallowance of other
					 personal income tax or corporate tax credits. See Chapter 7 (relating to Board
					 of Appeals).
The provisions of this §
												2.11 issued under section 506 of
						The Administrative Code of 1929 (71 P. S. §
													186); section 491(e) of the Public Welfare
						Code (62 P. S. §
													491(e)); and section
						1701-A(e) of the Tax Reform Code of 1971 (72 P. S. §
													8701-A(e)).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 3 - REVENUE INFORMATION SYSTEM › Section 3.1 - Regulations

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Purpose.
The Department issues regulations which are published
				  in Title 61 of the
Pennsylvania Code.
The purpose of a
				  regulation is to provide taxpayers with rules of general application so that
				  they might clearly understand their rights and duties under the law.
(b)
Scope.
Regulations
				  comprise activities of the Department in which the legislative element
				  predominates. They are designed to implement, interpret law or prescribe
				  policy, or to govern the procedure or practice requirements of the
				  Department.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 3 - REVENUE INFORMATION SYSTEM › Section 3.2 - Statements of policy

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Format.
For the purposes of providing guidelines to the
				  general public and interpreting law or regulations, the Department issues
				  statements of policy in two forms:
(1)
Revenue pronouncements.
A Revenue pronouncement will be used
				  to do any of the following:
(i) Interpret law
				  or regulations.
(ii) Announce
				  formally the guidelines or policies that the Department expects to implement in
				  a future regulation or to follow in a future adjudication.
(iii) Explain an administrative procedure
				  within the discretion of the Department.
(iv) Implement an act of Assembly if the
				  Department finds it is unnecessary to use regulatory powers to perform its
				  duties and responsibilities provided by law.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 3 - REVENUE INFORMATION SYSTEM › Section 3.3 - Letter rulings

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Purpose.
Upon written request, the Department issues private
				  letter rulings to taxpayers based upon specific factual information provided in
				  writing by a taxpayer. They are not formally published, but copies with
				  confidential material deleted may be obtained upon request from the Department
				  of Revenue, Office of Chief Counsel. The purpose of a private letter ruling is
				  to advise a taxpayer of the Department's application of the tax laws to a
				  specific factual situation unique to the taxpayer.
(b)
Applicability.
Private
				  letter rulings are issued by the Office of Chief Counsel and may be relied upon
				  only by the particular taxpayer concerned, based upon the facts supplied. When
				  necessary and appropriate, the Department may indicate that sufficient facts
				  have not been furnished and detail certain assumptions. With respect to taxes
				  where the Auditor General has the power and duty to approve settlements, a
				  letter ruling will not be issued without the review and approval of the Auditor
				  General. Absent statutory or regulatory change or rescission by the Department,
				  a taxpayer may rely on a private letter ruling for 5 years from date of issue
				  at which time the taxpayer shall renew the ruling by resubmitting it to the
				  Office of Chief Counsel for review.
(c)
Issued at discretion of
				  Department.
The Department has discretionary authority to issue
				  private letter rulings. This discretion is exercised in the light of relevant
				  circumstances. Examples of areas where private letter rulings normally will not
				  be issued include, but are not limited to:
(1)
				  Issues under extensive study or review.
(2) Alternative plans of proposed
				  transactions or hypothetical situations.
(3) Matters upon which a lower court decision
				  adverse to the Department has been handed down and the appeal period thereon is
				  still open and the question of following the decision or litigating the matter
				  further has not been resolved.
(4)
				  Transactions, the purpose of which is to avoid taxes.