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The Laid Off IT Guy! Working While Unemployed

You can work a little bit while looking for your next career and still collect unemployment.  Work too much, however, and you will begin to see a deduction from your weekly payment.  There is a limit to how much money you can earn from odd jobs before your unemployment payment begins to be reduced.  In today’s article I will explain what I’ve been able to gather.  I’m certainly no expert and this information isn’t intended to provide legal advice.

I can’t say what the law is in every state, but in the State of Indiana, the Maximum Benefit Allowance (MBA) is $390/week.  If you do any sort of continuing work for the employer that you just left, you will receive a dollar-for-dollar deduction for every dollar you earn from that company.  So, earn $100 in a week and your unemployment pay becomes $290 for that week ($390 - $100).

However, you can do some work for another employer up to 20% of the MBA before you begin to see a deduction.  I know it isn’t much, but in the example here, you could earn up to $78/week (20% of $390) before any deductions apply.  Once you earn more than $78 then the dollar-for-dollar deduction kicks in, as previously explained.  In our example of earning $100, you keep the first $78 then have $22 ($100-$78) deducted from the payment of $390, resulting in an unemployment payment of $368.  Combine both and you’ll have earned $446 for the week.

I certainly wouldn’t recommend trying to live that way very long.  If you can pick up some work, you might as well strive to make enough money not to need unemployment!  Deferring unemployment payments leaves money in your account for times when you can’t find any work.

Please stay positive in your job search.  I am certainly trying, too.  Thank you to my long-time readers.  Best of luck to you on your job hunting ventures.  Post a comment or drop me a line if you have something to share.

Thank you!

The Laid Off IT Guy!