Severance Packages Vs. Unemployment in Pennsylvania
When you are unemployed you face many difficult choices, and most of them depend on your current financial situation. When you are laid off your company may provide a severance package to help you while you look for a new job. In addition to your severance package, you can qualify for unemployment. Pennsylvania has strict rules about qualifying for unemployment and your severance package may affect how much you receive.
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Severance Package
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A severance package is something that employers offer to employees who are laid off through no fault of their own. It is a good-faith gesture to help them find a new job. Some severance packages will pay a weekly amount for a set number of weeks, while other packages pay a lump sum once the employee is laid off. The company determines the amount you receive, but generally it is related to the number of years you worked with the company.
Unemployment Benefits
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Unemployment benefits are provided by the state. The amount you receive will be a percentage of the amount you were paid each week. Your employer pays unemployment insurance each month, and your payments come out of that. You may not qualify for unemployment if you were fired, but you should qualify if you were let go because the company was cutting back positions. To qualify for your unemployment check you must demonstrate that you are actively looking for work each week. Pennsylvania will not pay back payments, so file as soon as you are laid off. You may also qualify if your hours are reduced.
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Receiving Severance and Unemployment
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The way your severance package is administered may determine how soon you qualify for unemployment. It will not limit your benefits, but it may delay when you receive them. In Pennsylvania, you must report any severance you receive when you receive it, and your caseworker will determine if you qualify for a payment that week. If you receive a lump sum payment you may not qualify for a payment that week, and you may have to wait until your severance runs out if you receive weekly payments, but Pennsylvania does not count severance payments as income when calculating your payment amount.
Other Assistance in Pennsylvania
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Pennsylvania offers training and help looking for a job through the unemployment office. Your unemployment caseworker can refer you to specific programs you qualify for and will explain the steps you need to take each week to qualify for unemployment. They will not pay for the cost of tuition, but you may qualify for grants based on your income or current education level.
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References
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