It is possible for your unemployment benefits to be reduced for a variety of different reasons, in some cases, at no fault of your own.
Your payments can be reduced when state money is limited. The Pennsylvania Unemployment Compensation Law requires that benefits be reduced to all recipients when the Unemployment Compensation Fund is low. If your benefits are reduced as a result of a declining fund solvency, you will be notified by the department.
Your benefits may also be reduced because of certain payments that you receive during your bout of unemployment, including based on earned part-time work wages.
If you are hired to a part-time position while receiving benefits, the Pennsylvania Unemployment Compensation Department will review the number of hours that you work as well as your rate of pay to determine how your unemployment benefits will be impacted. The department does so by evaluating what is known as your Partial Benefit Credit. While on unemployment, you can work on a part-time basis to earn up to 30 percent of your weekly benefit rate. Any amount that you earn that exceeds 30 percent of your weekly benefit rate is deducted from your unemployment benefit amount. The deduction is made dollar-for-dollar, so if you exceed the 30 percent marker by $10, your unemployment benefits will be deducted by $10 for that given week. If your earnings on a given week are more than or equal to your weekly benefit rate, you will not receive unemployment benefits for that week.
Other payments may also reduce your benefit amount if they exceed 30 percent of your weekly rate, including holiday and vacation pay, severance payments, pension payments, awards of back wages, support orders, and certain tax payments. These payments must be reported to the Pennsylvania Office of Unemployment Compensation for review.