CHAPTER 5. DEDUCTIBLE INCOME DEFINED
IC 22-4-5
Chapter 5. Deductible Income Defined
IC 22-4-5-1
Definition
Sec. 1. (a) "Deductible income" wherever used in this article,means income deductible from the weekly benefit amount of anindividual in any week, and shall include, but shall not be limited to:
(1) remuneration for services from employing units, whether ornot such remuneration is subject to contribution under thisarticle, except as provided in subsection (c);
(2) dismissal pay;
(3) vacation pay;
(4) pay for idle time;
(5) holiday pay;
(6) sick pay;
(7) traveling expenses granted to an individual by an employingunit and not fully accounted for by such individual;
(8) net earnings from self-employment;
(9) payments in lieu of compensation for services;
(10) awards by the national labor relations board of additionalpay, back pay, or for loss of employment, or any such paymentsmade under an agreement entered into by an employer, a union,and the National Labor Relations Board;
(11) payments made to an individual by an employing unitpursuant to the terms of the Fair Labor Standards Act (FederalWage and Hour Law, 29 U.S.C. 201 et seq.);
(12) for a week in which a payment is actually received by anindividual, payments made by an employer to an individual whoaccepts an offer from the employer in connection with a layoffor a plant closure; or
(13) except as provided in subsection (c)(2), the part of apayment made by an employer to an individual who accepts anoffer from the employer in connection with a layoff or a plantclosure if that part is attributable to a week and the week:
(A) occurs after an individual receives the payment; and
(B) was used under the terms of a written agreement tocompute the payment.
(b) Deductible income shall not include the first three dollars ($3),or twenty percent (20%) of the claimant's weekly benefit amountrounded to the next lowest dollar, whichever is the larger, ofremuneration paid or payable to an individual with respect to anyweek by other than the individual's base period employer oremployers.
(c) For the purpose of deductible income only, remuneration forservices from employing units does not include:
(1) bonuses, gifts, or prizes awarded to an employee by anemploying unit; or
(2) compensation made under a valid negotiated contract oragreement in connection with a layoff or plant closure, without
regard to how the compensation is characterized by the contractor agreement.
(d) Deductible income does not include a supplementalunemployment insurance benefit made under a valid negotiatedcontract or agreement.
(e) Deductible income does not include any payments made to anindividual by a court system under a summons for jury service.
(Formerly: Acts 1947, c.208, s.501; Acts 1953, c.177, s.10; Acts1957, c.299, s.16; Acts 1967, c.310, s.7.) As amended byP.L.227-1983, SEC.2; P.L.20-1986, SEC.3; P.L.138-2008, SEC.2;P.L.110-2010, SEC.24.
IC 22-4-5-2
Specific items deductible
Sec. 2. (a) Payments in lieu of a vacation awarded to an employeeby an employing unit shall be considered as deductible income in andwith respect to the week in which the same is actually paid. Thepayment of accrued vacation pay, dismissal pay, or severance pay toan individual separated from employment by an employing unit shallbe allocated to the period of time for which such payment is madeimmediately following the date of separation, and an individualreceiving such payments shall not be deemed unemployed withrespect to a week during which such allocated deductible incomeequals or exceeds the weekly benefit amount of his claim. Pay foridle time; sick pay; traveling expenses granted to an individual by anemploying unit and not fully accounted for by such individual;earnings from self-employment; awards by the National LaborRelations Board of additional pay, back pay, or for loss ofemployment; or any such payments made under an agreement enteredinto by an employer, a union, and the National Labor RelationsBoard; and payments to an employee by an employing unit madepursuant to the terms and provisions of the Fair Labor Standards Actshall be deemed to constitute deductible income with respect to theweek or weeks for which such payments are made. However, if suchpayments made pursuant to the provisions of the National LaborRelations Act or of the Fair Labor Standards Act or throughagreement with a union are not, by the terms of the order oragreement under which said payments are made, allocated to anydesignated week or weeks, then, and in such cases, such paymentsshall be considered as deductible income in and with respect to theweek in which the same is actually paid.
(b) Holiday pay which is paid not later than the normal pay dayfor the pay period in which the holiday occurred shall be deemed toconstitute deductible income with respect to the week for which suchpayments are made. Holiday pay which is paid after the normal payday for the pay period in which the holiday occurred shall beconsidered as deductible income in and with respect to the week inwhich the same is actually paid.
(c) Payment of vacation pay, if made prior to the vacation periodor not later than the normal pay day for the pay period in which the
vacation was taken, shall be deemed deductible income with respectto the week or weeks falling within such vacation period for whichvacation payment is made. Payment of vacation pay made subsequentto the normal pay day for the pay period in which the vacation wastaken shall be deemed deductible income with respect to the week inwhich such payment is made.
(Formerly: Acts 1947, c.208, s.502; Acts 1953, c.177, s.11; Acts1967, c.310, s.8; Acts 1971, P.L.355, SEC.10.) As amended by Acts1981, P.L.209, SEC.4; P.L.20-1986, SEC.4.
IC 22-4-5-3
Work week specified in contract; conditions for use
Sec. 3. (a) This section applies for purposes of deductible incomeonly.
(b) If:
(1) an employee and an employing unit have agreed in a laborcontract, that is negotiated on or before May 10, 1987, and anyrenewals thereafter of such contract, to establish a work weekthat is a different term of seven (7) days than the calendar week;
(2) the employing unit has filed a written notice with thedivision on a form prescribed by the division stating that a workweek other than the calendar week has been established underthe labor contract between the employing unit and itsemployees; and
(3) the notice has been filed with the division before anemployee working on the contractual work week files a claimfor unemployment compensation benefits;
the work week specified in the contract may be used for purposes ofthis chapter.
As added by P.L.241-1987, SEC.2.