Do they cap it? Let's say someone worked here 40 years?
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They really should not be able to legally call this severance if they pay it in a lump sum with heavy taxes that keep people from receiving unemployment benefits. This just adds more stress to an already horrible situation.
@f1 I was laid off from TGT a few months ago after just shy of 20 years there. You get the TGT discount, bi-weekly paychecks, and all your benefits for the 60 day period. After the 60 days you don’t get the discount anymore (unless you qualify for retirement), and all benefits stop. You will get more information after the 60 days are up about COBRA and other insurance offerings you can continue to pay for out of pocket. Like others have mentioned you get your severance in one lump sum and it’s taxed very heavily. In MN you can not get unemployment until the number of weeks your severance pay equaled are up. So I would have had to wait 25 weeks. It’s stupid bc severance is taxed so heavily and combined with the cost for Cobra, having to buy a new computer, paying monthly for software needed to create things for a job search, no target discount, and no money towards cell phone bill, etc the severance pay definitely did not last 25 weeks. In some other states you can collect unemployment immediately after your 60 day period even if you get severance in a lump sum. The payout for vacation is also by state. In MN they aren’t required to payout any vacation time but in some other states they are.
Do you still receive full medical coverage across the 60 days and then throughout your severance or is that cut off right away too?
why would they do a lump sum instead of continuing bi-weekly payments for the length of your severance? the lump sum with a 50% tax rate is disgusting. does the company get a benefit from making the employee pay more taxes?
@ag They stopped doing that when they switched L6 and above to unlimited vacation, everyone else has to use it or lose it.
@ah on the date of termination.
@ar everything gets paid in one lump summand taxed as a bonus.
Is the severance (6 weeks plus 1 week per year) paid out in a lump sum or do you earn that in your normal bi-weekly pay? Is health insurance included in that severance time?
The timing of unemployment kicking in varies by state. Was a remote employee based in MA and when I was laid off my unemployment started right after my 60 days was up. Did not have to wait for severance period (standard 6 weeks and an additional 2 weeks for 2 years of service) to get unemployment.
D-mb question, but when do you lose the TM discount? After the 60 days? Or right away?
26 weeks is the max if you have 26 years or more of service. This is outside of the 60 days pay if you are immediately let go. If you accrue vacation you will get that if you are retirement age.
This is based on past RIF’.
@a5 when my team was let go we got 6 wks + of 1wk per year capped at 26wks total.
Yes, they cap it at 26 weeks. You also have to wait until the severance period is over before you can claim unemployment.
The last lay-offs they didn't have a cap to my knowledge. They paid out 2 weeks per year of service + a base amount of like 6 or 8 weeks for everyone.