Unemployment Compensation – The Basics

In difficult economic times, the Pennsylvania program for Unemployment Compensation becomes a lifeline to persons who lose their jobs.

The Pennsylvania Department of Labor and Industry maintains an Office of Unemployment Compensation Benefits to supervise the unemployment compensation safety net.   Essentially and basically, the program provides for payment of weekly compensation of approximately one-half of a former employee’s weekly salary, up to a statewide weekly maximum of $564.00.   There are certain eligibility requirements – an employee must have been gainfully employed for a “base year” consisting of 4 out of the last 5 calendar quarters.   By way of example, for an employee who had earned $20,000.00 in a given base year, the eligibility requirement is that the employee have earned at least $8,000.00 in the base year in order to be entitled to 26 weeks of payment in the amount of $202.00 per week.

Applications for unemployment compensation benefits are easily made on line; the website is www.uc.pa.gov.

Once an applicant is approved for unemployment compensation, no checks are mailed.   The applicant receives a debit card which is automatically funded on a bi-weekly basis.   Alternatively, a direct payment system may be established for an existing bank account owned by the beneficiary.   A beneficiary must reapply every 2 weeks by answering a series of questions on line (with a pin number provided by the Bureau).   Unfortunately, all unemployment compensation benefits are subject to Federal and State taxation and benefits terminate automatically upon re-employment.

From time to time, extensions of compensation benefits are directed by the Federal or State government, however, sometimes the extensions mandate that additional requirements to be satisfied.

Employers, who are required to pay into the Unemployment Compensation Fund, may contest entitlement to unemployment compensation if an employee quits voluntarily or if the employee is guilty of willful misconduct in connection with performance of job duties.

— Bill Brennan

 

Posted in Business / Employment