PA UC deducting $40 from first payment - what's this mysterious withholding?

That $40 is most likely federal income tax withholding. Pennsylvania UC automatically withholds 10% for federal taxes unless you specifically opted out when you filed your initial claim. Your cousin would have seen this option during the application process but might have missed it. It's actually helpful since it means she won't owe as much at tax time. This will continue with all payments unless she changes her tax withholding preferences through her online account.

THEY DO THIS TO EVERYONE!!!! they take money without explaining what its for. i had the same thing happen and when i finally got thru to someone they acted like i was stupid for asking. the system is designed to confuse people. every single person i know who gets UC has the same complaint.

Your cousin can change her tax withholding preferences anytime. She needs to log into her PA UC account, go to 'My Benefits Plan', then select 'Update Tax Withholding'. She can choose to stop the federal tax withholding, but remember that unemployment benefits ARE taxable income, so she'll need to pay those taxes eventually. Some people prefer having it withheld automatically to avoid a surprise tax bill later.

Not only is it tax withholding but also when I got my first check they took out child support that was in arrears. Does your cousin have any garnishments? Child support? Student loans? Those can also be automatically deducted from UC payments.

Been trying to call PA UC for 3 weeks about a similar issue with deductions and can't get through. Busy signals every time or disconnected after waiting forever. If your cousin figures out how to reach someone, let me know! I've been trying to ask them why they're taking MORE than just the tax amount from mine.

tell ur cousin to check her determination letter it should say her weekly benefit rate and what deductions theyr taking. mine shows the tax withholding right on it

Just to clarify for everyone - PA UC has several possible deductions that can be applied to payments: 1. Federal income tax (10% - optional) 2. State income tax (optional) 3. Child support obligations (mandatory if ordered) 4. Overpayment recovery from previous claims (if applicable) 5. Pension deductions (in certain situations) The determination letter will specify which ones apply to your specific claim. Most commonly it's just the federal tax withholding that people notice.

Update: Just talked to my cousin and she checked her account. It was indeed the tax withholding! She found where to change it for future payments. Thanks everyone for the help!

Glad your cousin got it sorted out! Just a heads up for anyone else reading this - if you do decide to stop the tax withholding like she did, it's a good idea to set aside about 10-12% of each payment in a separate savings account for taxes. I learned this the hard way when I got a big tax bill the following year. UC benefits are taxed as regular income, so depending on your other income for the year, you might end up owing more than you expect come tax time.