PA UC payment showing $2 less than expected after tax withholding - what's this mystery deduction?

That $2 is probably the transaction fee for the Money Network card. They don't make it obvious but there's a small fee taken out for processing payments. I had the same question when I was on UC last year. If you switch to direct deposit to your bank account, you'll get the full amount minus just the taxes. Hope that helps!

its not a fee!! its uc insurance contribution, everyone pays it. they take 1% of your benefit amount for future unemployment fund. check the handbook they gave u

Actually BOTH of these answers are wrong! There is NO fee for the Money Network card (that would be illegal) and PA doesn't take any 1% contribution from benefits. The $2 is most likely an issue with how the system calculates the tax withholding. Sometimes it rounds differently or applies the calculation in a strange order. I've seen this question come up so many times working with people on their claims.

I had this EXACT problem!!! Mine was even worse though. I was supposed to get $378 after taxes and was only getting $375. Called UC for THREE WEEKS straight with busy signals and disconnects. Finally just gave up because it wasn't worth the stress for $3 a week, but it still bugs me!!! The system is SO BROKEN!

The discrepancy is actually due to how the PA UC system calculates tax withholding. Rather than taking exactly 10% of your WBA (Weekly Benefit Amount), the system uses a slightly more complicated formula that accounts for both federal and state tax requirements. The calculation sometimes results in odd amounts that don't match the simple percentage calculation we might do in our heads. If you want to verify this, you can request a detailed benefits payment history through your dashboard. Click on "View Payment History" and then "Payment Details" for any specific payment. It should break down exactly how much was withheld and why. If it doesn't provide enough detail, you can request a written explanation by messaging through the portal.

I should also mention that if you're concerned about exact payment amounts, direct deposit is generally more transparent and has fewer issues than the Money Network card. You can switch by going to the Payment Information section of your dashboard and selecting "Change Payment Option." It takes about 1-2 payment cycles to take effect.

Update: I checked the detailed payment view like @helpful_guidance suggested and found that the withholding is actually $22 not $20! It shows Federal tax: $20 and State tax: $2. Mystery solved! Thank you everyone for your help.

this happens to everyone lol... the system is confusing AF... glad u figured it out!

Great detective work figuring that out! The PA system definitely doesn't make it clear that they withhold both federal AND state taxes when you select the withholding option. I went through the same confusion when I first started collecting benefits. For anyone else reading this - when you opt for tax withholding in PA, it's not just a flat 10% federal tax like some other states. PA withholds federal tax AND a small amount for state tax, which is why the math doesn't add up to your expected calculation. Really glad you found the detailed breakdown view - that feature is a lifesaver for understanding where every dollar goes!

Thanks everyone for helping Connor figure this out! This is actually a really common confusion point for new UC recipients in PA. The state doesn't do a great job explaining that when you elect tax withholding, they automatically withhold for BOTH federal and state taxes. I see this question pop up in the community regularly. For future reference, if anyone wants to see exactly what's being withheld before it becomes a mystery, you can always check the "Tax Information" section in your dashboard settings - it shows the breakdown of what will be deducted. Super glad Connor found the detailed payment view and solved the puzzle!

This is such a great example of how confusing the PA UC system can be for newcomers! I went through something similar when I first started collecting - kept wondering where those extra few dollars were going. The fact that PA doesn't clearly explain upfront that tax withholding includes BOTH federal AND state taxes is really frustrating. It would save everyone so much confusion if they just said "we'll withhold approximately 11% total" instead of making it sound like it's just the 10% federal. Really appreciate everyone who jumped in to help solve this mystery - this thread is definitely going to help other people who run into the same issue!

This is such a helpful thread! I'm currently waiting for my UC claim to be approved and was planning to elect tax withholding, but I had no idea PA takes out both federal AND state taxes. I was definitely assuming it would just be the 10% federal like Connor initially thought. Thanks to everyone who helped solve this mystery - I'll know to check that detailed payment view right away when my payments start so I'm not caught off guard. It's really frustrating that PA doesn't make this clearer during the application process. This community is awesome for helping newcomers navigate all these confusing details!