What is the name of your state (only U.S. law)? PA
Hello All,
I need advice on my situation. I am PA resident and was laid off from my job. My last day of employment was November 30th. At that point, I was still in the process of negotiating a severance package with my employer.
On Dec 4th, I applied for UC benefits and correctly indicated that I did not receive (nor expected to receive) a severance package, as the negotiations with my employer were not going well at that point and he was threatening to pay me nothing. A few days later, cooler heads prevailed, and my employer and I reached an agreement in which I would be paid $X severance to be paid out on the last day of the year.
I was ultimately paid my severance on December 31st. However, I have submitted 3 bi-weekly claims (without indicating that I received the severance) on 12/16, 12/31, and 1/16. For those not aware, starting Jan 1st 2012, PA began deducting any severance pay received by a claimant that exceeds 40% of PA’s average annual wage (approximately $17,800). Since my package is above this amount, I’m afraid the benefits I have received up until this point will be considered an overpayment.
My question is what is my best course of action at this point? I figure I have two options: (1) Do nothing, wait for PA to catch the mistake, and then cooperate fully and pay back the money promptly; or (2) Try to self report that I received the severance now before the state catches the mistake (I have no idea how I would do this. I checked the PA unemployment benefits website for hours and there doesn’t appear to be a mechanism to self-report when you believe you are receiving overpayments).
I have to admit that Option 1 is appealing because it wouldn’t require any legwork on my part and it also provides the minuscule possibility that the mistake is never found and I actually get to keep the money (I know, I know never going to happen…but one can always hope). The downside to this approach is that I expose myself to the risk of a fault overpayment. While I understand that “failure to report wages and pensions may result in disqualification for benefits, fines, and/or imprisonment”, based on what I’ve read in this forum and others, the more likely outcome is that PA will send me a sternly-worded letter notifying me of the fault overpayment and give me X number of days to pay back the money (which I would do so immediately).
Could anyone with more experience with this situation correct me if I’m wrong in my assumption?
Also, do you believe I would be subject to interest or penalties if I cooperate fully and respond right away? In other words, (and this is directed to those that have received fault overpayment notices from PA), is it standard operating procedure for the state to initially offer you the opportunity to pay back the benefits without penalties or interest? I’m just trying to calculate whether it makes sense from a purely financial standpoint to wait for the state to catch the mistake on its own.
Thank you to everyone that takes the time to read about my situation. This board has been a great resource. Any advice would be greatly appreciated.
Hello All,
I need advice on my situation. I am PA resident and was laid off from my job. My last day of employment was November 30th. At that point, I was still in the process of negotiating a severance package with my employer.
On Dec 4th, I applied for UC benefits and correctly indicated that I did not receive (nor expected to receive) a severance package, as the negotiations with my employer were not going well at that point and he was threatening to pay me nothing. A few days later, cooler heads prevailed, and my employer and I reached an agreement in which I would be paid $X severance to be paid out on the last day of the year.
I was ultimately paid my severance on December 31st. However, I have submitted 3 bi-weekly claims (without indicating that I received the severance) on 12/16, 12/31, and 1/16. For those not aware, starting Jan 1st 2012, PA began deducting any severance pay received by a claimant that exceeds 40% of PA’s average annual wage (approximately $17,800). Since my package is above this amount, I’m afraid the benefits I have received up until this point will be considered an overpayment.
My question is what is my best course of action at this point? I figure I have two options: (1) Do nothing, wait for PA to catch the mistake, and then cooperate fully and pay back the money promptly; or (2) Try to self report that I received the severance now before the state catches the mistake (I have no idea how I would do this. I checked the PA unemployment benefits website for hours and there doesn’t appear to be a mechanism to self-report when you believe you are receiving overpayments).
I have to admit that Option 1 is appealing because it wouldn’t require any legwork on my part and it also provides the minuscule possibility that the mistake is never found and I actually get to keep the money (I know, I know never going to happen…but one can always hope). The downside to this approach is that I expose myself to the risk of a fault overpayment. While I understand that “failure to report wages and pensions may result in disqualification for benefits, fines, and/or imprisonment”, based on what I’ve read in this forum and others, the more likely outcome is that PA will send me a sternly-worded letter notifying me of the fault overpayment and give me X number of days to pay back the money (which I would do so immediately).
Could anyone with more experience with this situation correct me if I’m wrong in my assumption?
Also, do you believe I would be subject to interest or penalties if I cooperate fully and respond right away? In other words, (and this is directed to those that have received fault overpayment notices from PA), is it standard operating procedure for the state to initially offer you the opportunity to pay back the benefits without penalties or interest? I’m just trying to calculate whether it makes sense from a purely financial standpoint to wait for the state to catch the mistake on its own.
Thank you to everyone that takes the time to read about my situation. This board has been a great resource. Any advice would be greatly appreciated.