PA UC filing with severance: Should I file now or after 90-day package ends?
My position got eliminated last week (July 15) and my company is giving me a 90-day severance package that will be paid every 2 weeks until mid-October. I'm confused about when I should actually apply for unemployment - should I file now even though I'm still getting these severance payments? Or am I supposed to wait until the severance payments stop in October? Not sure if receiving severance disqualifies me from benefits or if there's some special way to report it. Any advice would be appreciated!
17 comments
Hannah White
You should file for unemployment right away, even while receiving severance. PA considers severance payments as deductible income, which means they'll reduce your weekly benefit amount while you're receiving it, but you'll establish your claim sooner. The important thing is that you don't delay filing because you have limited time to establish your benefit year (typically within 2 weeks of your last day worked). If you wait until October, you might lose out on potential benefits.
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Nick Kravitz
•Thanks for the quick response! So if I file now, will I actually get any payments while on severance or will they just be reduced to $0 until October?
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Michael Green
i waited til my severance ran out and it was a HUGE mistake!!! they counted my base year wrong because i waited too long. definitely file now!!!
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Nick Kravitz
•Oh wow, that sounds terrible! What happened with your claim after that? Were you able to fix it?
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Michael Green
•nope, got way less $ because they used older quarters for my base year. lost like 4 months of good wages in the calculation :
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Mateo Silva
There's an important distinction here - how your severance is classified matters. If it's considered "separation pay" and paid in a lump sum, it's deducted differently than if it's considered ongoing wages. You mentioned it's paid bi-weekly, so PA UC will likely treat each payment as deductible income during the weeks received. Here's what to do: 1. File your initial claim now (establishes your benefit year) 2. When filing weekly claims, report your severance payments 3. Your benefits will likely be reduced or $0 during severance period 4. After severance ends, your full weekly benefit should kick in Remember that your "base year" for calculating benefits is the first 4 of the last 5 completed calendar quarters before filing. Filing now vs. October could actually result in different weekly benefit amounts depending on your work history.
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Victoria Jones
•What about taxes? Doesn't unemployment + severance create a tax problem? My cousin got hit with a huge tax bill when he did both.
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Mateo Silva
•Good point about taxes. Both severance and unemployment benefits are taxable income. You can elect to have taxes withheld from your UC benefits (recommended), but you may want to set aside additional money if your severance isn't withholding enough. The tax issue isn't a reason to delay filing though - it's just something to plan for when filing your 2025 taxes.
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Cameron Black
I went through this EXACT situation last year!!! The PA UC system is such a nightmare to deal with. I filed right after getting laid off even though I had 8 weeks of severance coming. My benefits were reduced to $0 during that time, but at least my claim was in the system. HOWEVER, when my severance ended, they didn't automatically start paying me - I had to call and explain that my severance had ended. And good luck getting through to anyone there!!! I spent THREE DAYS hitting redial trying to get through to a real person.
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Jessica Nguyen
•When I had a similar situation, I used Claimyr to get through to an actual agent instead of dealing with the busy signals. It cost a bit but saved me days of frustration. They connected me to a PA UC rep in about 20 minutes. Their site (claimyr.com) has a video showing how it works: https://youtu.be/CEPETxZdo9E?si=WL1ZzVZWG3KiHrg2. Definitely worth it when you need to explain something complicated like severance ending.
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Nick Kravitz
•That's really helpful to know - so I should make a note to contact them when my severance runs out in October? Did you have to provide any documentation that it had ended?
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Isaiah Thompson
dont listen to these ppl... if ur getting paid why would u file for unemploymnt?? thats double dipping and prolly illegal. wait till ur actually unemployed (no more $$ coming in) then file
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Hannah White
•This is incorrect and potentially harmful advice. Filing while receiving severance is completely legal and actually recommended by the PA UC office. As long as you report the severance income on your weekly claims, you're following the rules. Waiting could negatively impact your benefit year and potentially reduce your overall benefit amount.
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Nick Kravitz
Thanks everyone for the advice! I'm going to file my initial claim this week, even though it sounds like I probably won't receive any actual benefits until the severance ends in October. Better safe than sorry with establishing the claim early. I'll make sure to accurately report the severance payments on my weekly claims too.
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Mateo Silva
•That's the right approach. One more tip: even during weeks when your benefits are reduced to $0 due to severance, make sure you still file your weekly claims! This keeps your claim active and makes the transition smoother when severance ends. Also, start keeping records of your work search activities now - PA requires you to apply to at least 2 jobs and complete 1 work search activity each week.
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Victoria Jones
Kind of a side question but related - does anyone know if the severance affects the job search requirements? Do I still need to apply to jobs while getting severance even if my benefits are $0?
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Hannah White
•Yes, you still need to meet the work search requirements (2 job applications + 1 work search activity per week) even during weeks when your benefits are reduced to $0 due to severance. This is because you've still filed a claim and are considered part of the UC system. The only exception would be if you have a definite recall date from your employer within 12 weeks.
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