Unemployment Benefit Tips

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Deductable Income and Unemployment Benefits

by Carrie

(Indiana Unemployment)

Deductable Income and Unemployment Benefits

I was laid of work but will be receiving a separation and vacation pay. I immediately filed for unemployment, but they say it is going to be delayed until they hear from my employer concerning the separation pay, because of the deductible income.

My question is: Will I be able to receive unemployment if I am going to receive separation and vacation pay? Also, the separation and vacation pay will only pay my bills for a few months, then what?

Answer

Hi Carrie,

When vacation pay and separation or severance pay are deductible from benefits .. it is usually equated to weeks of pay. Many states do postpone payment of benefits .. for dismissal pay of any kind and vacation pay, of course this is also state specific. But, it does not prohibit you from collecting when that time frame has passed.

Considering that the maximum duration of unemployment benefits is 26 week during 1 full benefits year .. most people will be able to collect unemployment benefits at some point during their benefit year unless the separation pay amounted to an entire twelve months of salary and I doubt that happens very often.

Chris

Comments for Deductable Income and Unemployment Benefits

Average Rating starstarstarstarstar
May 03, 2020
Rating
starstarstarstarstar		 Unemployment
NEW
by: Anonymous


The first user above. I have had the same issue with it just saying deductible income. I’m now on week 3. Did yours ever get fixed?

Apr 24, 2020
Rating
starstarstarstar		 HELP!!!! Deductible Income Issue
NEW
by: Anonymous


I submitted an unemployment claim on 3/22/20, The claim was approved, a debit card was issued, received and activated. I then began submitting my weekly claims and the results were as follows:

03/28;20 – Non-Pay due to initial hold payment

04/05/20 – Deductible Income

04/13/20 – Deductible Income

04/20/20 – Deductible Income

I stated that I received $66 in vacation pay, (which I shouldn’t have.since it was actually sick pay), on my weekly claim dated 04/05/20. Now all claims return a payment issued code of “N” with the reason “Deductible Income”. Even my first weekly claim dated 03/29/20 now has the Deductible Income reason included.

Although I didn’t receive a letter, I found a document requesting that I fax a copy of my check stub, which I have done twice (4/4 and 4/7). When I found 5hat there were still no documents received by DETR, I mailed the copy (+ relevant questions)to the address at the top of the document they sent requesting the pay stub on 4/18, yet still not reflected in “Documents”.

I am at my wits end trying to get through to them for direction and resolution. My ex co-workers are receiving their pay and I can’t get assistance. I have been calling every Monday – Friday beginning at 8:00am, redialing constantly until the queue is full for the day. I have yet to get through.

I NEED HELP!!!!!!
Apr 24, 2020
Rating
starstarstarstar		 HELP!!!! Deductible Income Issue
NEW
by: Anonymous


I submitted an unemployment claim on 3/22/20, The claim was approved, a debit card was issued, received and activated. I then began submitting my weekly claims and the results were as follows:

03/28;20 – Non-Pay due to initial hold payment

04/05/20 – Deductible Income

04/13/20 – Deductible Income

04/20/20 – Deductible Income

I stated that I received $66 in vacation pay, (which I shouldn’t have.since it was actually sick pay), on my weekly claim dated 04/05/20. Now all claims return a payment issued code of “N” with the reason “Deductible Income”. Even my first weekly claim dated 03/29/20 now has the Deductible Income reason included.

Although I didn’t receive a letter, I found a document requesting that I fax a copy of my check stub, which I have done twice (4/4 and 4/7). When I found 5hat there were still no documents received by DETR, I mailed the copy (+ relevant questions)to the address at the top of the document they sent requesting the pay stub on 4/18, yet still not reflected in “Documents”.

I am at my wits end trying to get through to them for direction and resolution. My ex co-workers are receiving their pay and I can’t get assistance. I have been calling every Monday – Friday beginning at 8:00am, redialing constantly until the queue is full for the day. I have yet to get through.

I NEED HELP!!!!!!
Oct 03, 2014
Rating
starstarstarstar		 Severance Issues

by: Anonymous


I received a mere $600 in severance when I was laid off on 8/15. It is now October, and this severance has apparently delayed any type of unemployment benefits I am entitled to. I have been paid nothing to date while the severance is being “verified.” I faxed over proof of severance, but that has not helped. Unbelievable.