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TexLaw, Attorney
Category: Legal
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Experience:  Lead trial/International commercial attorney licensed 11 yrs
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I am on wc and I aslo recived 6 months severance pay. Does

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I am on wc and I aslo recived 6 months severance pay. Does the severance offset the wc?

Note: the severance pay was granted before they hired me in liue of health insurance and a lesser salary.


My name is XXXXX XXXXX I will be assisting you with your legal question.

When you say "offset" I want to make sure I understand what you mean.

Do you mean that if you receive severance pay then you want to know if you will also receive WC wage benefits during the same period?
Customer: replied 3 years ago.

I recived my severance pay the last 6 months and wc the last 6 months. The wc pay may need to be pay back under certain conditions.

My serverance pay was a pre-empolyment agreement in liue of a higher salary and no healt care. They also 1099 me on the severance pay for some reason.


I need to know if I must pay back the wc as it was agreed on before I took my job .



Got it. Thanks.

Please stand by while I research this answer for you.

Customer: replied 3 years ago.

I need this infomation so I can fill out LIBC -756 for WC and State. If it is not consider severance because of pre-employee agreement or they 1099 me.


Not the severance was bi weekly, not a lump sum.

According to the Pennsylvania Workers Compensation Act Section 123 et seq., severance pay is offset against workers compensation benefits.

Because you have been sent an LIBC756, you must list the severance pay that you have received. If you have benefits which are due to you going forward, they could (at your employer's discretion) be used to offset any future benefits.

The case law in Pennsylvania indicates that any credit can only be applied going forward and does not require that you repay any benefits received. This is because it is the employer/insurer's duty to send the form to you to report. It is only where you misreport the receipt of benefits that you could be liable to pay the benefits back.

Please let me know if you have any further questions. Please also kindly consider rating my answer positively so that I am credited by the website for my work on your question. Rating positively does not cause an additional charge and does not prevent us from further discussing your questions.

Kind regards,
Customer: replied 3 years ago.

I belive you said I do not have to payback what I recvied in WC already, they can offset it going forward?


Also they 1099 me does that have any bearing on the term "Severance pay"?

Yes, they can only offset going forward, they cannot require you to pay back.

In regard to the 1099, it does not have any bearing on whether or not the payment is severance, as this is mere documentation of the payment to you for tax purposes. In other words, unless the employer agrees to take out the taxes owed to you on the pay in the severance and treat it as a payroll payment, the employer is required to send you a 1099.
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