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Tuesday, July 24, 2012

Can I Get Unemployment In Pennsylvania If I am Working a Part-Time Job?



If While On Unemployment You Get a Part-Time Job Paying You W-2 Wages, You May Still Be Entitled to Partial Unedmployment Benefits

Make Sure They Are Paying You W-2 Wages!
In order to understand all of the numbers, we have tried to break it down for you, as follows.
Start By Understanding Weekly Benefit Rate
Below are weekly benefit rates for common salaries/yearly earnings:
$57,000 per year: $573

$50,000 per year: $502

$45,000 per year: $452

$40,000 per year: $402

$35,000 per year: $352

$30,000 per year: $302

$25,000 per year: $252

$20,000 per year: $202

$15,000 per year: $152


Then Figure Out Maximum Amount of Part-Time Benefits You Can Earn
If you are getting unemployment in Pennsylvania, you can work at another job on a part-time basis (provided you are paid W-2 wages and not as a 1099 independent contractor) and still get unemployment. 


If You Are Doing This, You Are Likely an Independent Contractor,
and Will Be DQd From Getting UC Benefits
The first thing you should know is that, if you earn 40% of your weekly benefit rate or less in your part-time job, you will suffer NO LOSS of unemployment compensation benefits.  Below you will see the maximum part-time earnings for various weekly benefit rates:

$57,000 per year: $573/230
$50,000 per year: $502/201

$45,000 per year: $452/181

$40,000 per year: $402/141

$35,000 per year: $352/121

$30,000 per year: $302/101

$25,000 per year: $252/81

$20,000 per year: $202/61

$15,000 per year: $152/41


Even if you earn more than 40% of your weekly benefit rate in a part-time job, you can still get unemployment, at least up to a certain point.  That certain point is when your part-time earnings, when added to your weekly benefit rate exceed your weekly benefit rate plus 40% of your weekly benefit rate. 

The below chart shows the maximum amount of part-time earnings you can earn while still being entitled to any partial unemployment compensation benefits in Pennsylvania (t make things clear, the below figures are weekly benefit rate/40% of weekly benefit rate/maximum part-time earnings allowed):

$57,000 per year: $573/230/803
$50,000 per year: $502/201/703

$45,000 per year: $452/181/ 633

$40,000 per year: $402/141/543

$35,000 per year: $352/121/473


$30,000 per year: $302/101/403

$25,000 per year: $252/81/333

$20,000 per year: $202/61/263

$15,000 per year: $152/41/193


The Tricky Part

Once your part-time earnings exceed 40% of your weekly benefit rate, the amount of your unemployment benefits will be reduced according to a formula.
In order to understand the formula, one needs to understand the verbiage that Unemployment uses to describe the above numbers.  Take, for example, the column $573/230/803.  Unemployment refers to $573 as your “Weekly Benefit Rate.”  It refers to $230 as your “Partial Benefit Credit” (don’t ask me why!).  Oddly, Unemployment does not have a name for the $803 figure, so I call it “the Product.”

Now that we understand the nomenclauture, we (hopefully) can understand the following statement:

If you are working part-time and earning more than your Weekly Benefit Rate, but less than the Product, you will get the difference between the Product and your earnings for each given week.

Examples: 

Your Product is $803 and you are earning $750 per week in a part-time job.  You would get $53 per week in unemployment benefits.

Your Product is $633 and you are earning $450 per week in a part-time job.  You would get $183 per week in unemployment benefits.

Your Product is $403 and you are earning $250 per week in a part-time job.  You would get $153 per week in unemployment benefits.

Your Product is $263 and you are earning $150 per week in a part-time job.  You would get $113 per week in unemployment benefits.
 
John A. Gallagher is an employment lawyer who represents employees in Pennsylvania.

Click Here if you have questions about any aspect of employment law, from wrongful termination, to wage and overtime claims, to discrimination and retaliation laws, to Family and Medical Leave…

Click Here if you have questions about any aspect of Pennsylvania Unemployment Law, from willful misconduct, to voluntary quit, to Referee Hearings, to severance issues…

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4 comments:

Anonymous said...

Thank you. You have made this so easy to understand and I now know how to estimate what I will be making each week when I do go back to work art-time.

John Oliver said...

Thanks for this. Very helpful...

How would this work...

Getting paid the maximum of $573, earn an additional $200 per week in a part-time role. Do you still get the entire $573 (along with the$200 you earned) since it is under the 40% threshhold?

Employment Lawyers said...

John:

If you are receiving $573, you may earn up to $229 per week on W-2 part time work without suffering any reduction in your $573 weekly benefit.

Regards,

John A. Gallagher

Anonymous said...

I make 573 each week on unemployment. I can earn 229.00 extra per week. Is that gross or net?
Thanks....