The COVID-19 Pennsylvania Employee Hazard Pay Grant

At a Glance

• The Pennsylvania Department of Community and Economic Development (DCED) announced a COVID-19 employee hazard pay grant program.
• Applications are being accepted between July 16, 2020, and July 31, 2020.
• The program limits hazard pay grants to 500 eligible full-time equivalent employees per location ($600,000 maximum grant per location).
• Applications must be submitted through the Electronic Single Application (ESA).

Introduction

The Pennsylvania Department of Community and Economic Development (DCED) announced a COVID-19 employee hazard pay grant program intended to keep front-line employees working in sectors that are vital to every Pennsylvanians’ existence. This program helps employers provide hazard pay to employees in life-sustaining occupations during the COVID-19 public health crisis. The Pennsylvania DCED defines hazard pay as additional compensation for performing hazardous duty or work involving physical hardship, in each case that is related to COVID-19.

For employers to receive the grant, they have a fifteen (15) day window of opportunity to apply. The department is accepting applications between July 16, 2020, and July 31, 2020. Of special note, individuals are not eligible applicants for the Hazard Pay Grant Program, applicants MUST be employers.

Eligibility

Businesses, healthcare non-profits, public transportation agencies, and certified economic development organizations may apply for funding for employers located and operating in Pennsylvania within one of the following eligible industries:

• Healthcare and social assistance
• Food manufacturing & retail facilities
• Transit and group 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

Hazard Pay Grant Funding

• Employers will submit applications 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 of August 16, 2020 through October 24, 2020 as a $3/hour hazard pay increase to their regular hourly pay rate.
• The program limits hazard pay grants to 500 eligible full-time equivalent employees per location ($600,000 maximum grant per location).
• Grant funds may be used for hazard pay for direct, full-time and part-time employees earning less than $20/hour, excluding fringe benefits and overtime.
• Funds may only be used to pay hazard pay for eligible employees for the 10-week period from August 16, 2020 through October 24, 2020.

Next Steps

If an eligible employer wishes to apply for this grant, employers must be submit their applications through the Electronic Single Application (ESA) between July 16, 2020, – July 31, 2020.  For questions about the application and eligibility please contact DCED Customer Service: (1) 866-466-3972 or ra-dcedcs@pa.gov.

Paylocity is closely monitoring this program for additional agency guidance and announcements.

Thank you for choosing Paylocity as your Payroll Tax and HCM partner.

This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.