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Article | COVID-19, Tax

PA Hazard Pay Grants

The Pennsylvania Department of Community and Economic Development (“DCED”) is offering a grant program to certain industries to subsidize hazard pay to employees.

The grants are available to employers in the following industries:

  • Healthcare and Social Assistance
  • Food Manufacturing
  • Food Retail Facilities
  • Transit and Ground Passenger Transportation
  • Security Services for eligible industries listed above and commercial industries that were not closed as a result of the Governor’s Business Closure Order
  • Janitorial Services to Buildings and Dwellings

Funds may be used to pay hazard pay for direct, full-time and part-time employees earning less than $20/hour. Funds may only be used to pay hazard pay for the 10-week period from August 16, 2020 through October 24, 2020. Hazard pay means additional pay for performing a hazardous duty or work involving physical hardship, in each case that is related to COVID-19.

Employers may apply for up to $1,200 per eligible full-time equivalent (FTE) employee. The hazard pay must be paid to the eligible employee over the 10-week period as a $3/hour hazard pay increase to their regular pay rate.

Employers may apply for a grant to provide hazard pay for up to 500 eligible full-time equivalent employees per location ($600,000 maximum grant per location). No Employer may receive more than $3,000,000 of the funding under the COVID-19 Hazard Pay Grant Program.

For more information and to apply, please go to the DCED website at https://dced.pa.gov/programs/covid-19-pa-hazard-pay-grant/.

If you have questions about the Pennsylvania Hazard Pay Grant, please contact your HBK Advisor.

About the Author(s)
Sue is a Senior Manager in the Pittsburgh, Pennsylvania office of HBK. She began her career in 1990 spending 14 years in public accounting followed by 14 years in government. Sue has extensive experience in state taxation and pass through entities. While working at the PA Department of Revenue, she was the Director of the Pass-Through Business Office for 11 years prior to being promoted to Deputy Secretary for Compliance and Collections. She is a member of the HBK’s Tax Advisory Group.
Hill, Barth & King LLC has prepared this material for informational purposes only. Any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or under any state or local tax law or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Please do not hesitate to contact us if you have any questions regarding the matter.

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