When one applies for unemployment compensation, it is important to coordinate said application based on when one’s severance package expires and whether one is still within one’s base year, which is the length of time preceding an application for unemployment compensation. The base year and one’s income earned over that period of time determine the calculations of the amount of one’s unemployment compensation benefits. A credit week is a week within a base year where an employee has worked and earned above a specific threshold income, as per 43 P.S. Section 753(g.1). In order to be eligible for benefits, one must receive employment income for a minimum of 18 credit weeks within a base year.
Section 804(d)(1)(iii) states that, “Notwithstanding any other provisions of this section, each eligible employee who is unemployed with respect to any week ending subsequent to July 1, 1980, shall be paid with respect to such week, compensation in an amount equal to his weekly benefit rate less the total of … the amount of severance pay that is attributed to the week.” In other words, when one applies for unemployment compensation benefits, one must report the income received from a severance package and that income is deducted from the unemployment compensation benefits if they are collected simultaneously.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Not a Bloomberg Law Subscriber?
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]