Has anyone received it yet? I just got PTO and last paycheck today, last day on payroll. I assume the severance will be a separate email/doc to sign, but when can we expect this? Thanks in advance!
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In Texas, severance may delay or stop receipt of unemployment benefits, and payments will be delayed until the payment's period of coverage has expired.
For example, receiving severance pay does not impact your benefits in California, even if you receive it in a lump sum instead of in regular installments like a paycheck.3 You need to report the amount you receive, and pay taxes on it as you would any other income, but it will not be deducted from your unemployment compensation.
I had to go back to my HRBP and ask where the severance email was - they have 7 days to send it from termination date, but based on the HR response it looks like mine was missed and they just sent it after I initiated contact.
@a2 best if you wait until after lump sum to file for unemployment.
@an+1k0czrr6a
Do not claim unemployment until after you receive the lump sum payout. I worked with an employment attorney at a previous company and his guidance was spot on. I received my lump sum severance and my unemployment insurance.
Yes, you can claim unemployment but the week you get paid the lump sum you will have to submit you were paid $10,000+ in severance. The unemployment payment will last for a total of 6 months from the date you claim it. If you get a job before the 6 months has expired, you are very lucky and thank god you were hired in less than 6 months.
You can apply for Unemployment now. If you have any money coming in once you're on Unemployment, just be sure to claim it (you can do this electronically, and it usually covers each 2 week period of time you're on Unemployment.)
Be upfront with Unemployment about any money received. They'll know about it anyway, so to avoid penalties with them just tell them how much and from where you got whatever money - be it from severance, a bonus, paying out an HSA account, etc. or even if you get a P/T job while being unemployed.
If you make/bring in over whatever Unemployment would be paying you, then you don't get the Unemployment money for that week or 2 week period, but they won't disqualify you or boot you off, just for having some money coming in.
https://legalclarity.org/can-you-get-unemployment-and-work-part-time/
It depends on which state OP is located, in regard to whether or not your statement holds true.
Yes, it's a good idea to apply for UI the first day when one is considered to be officially unemployed, as the UI $ is determined by application date submitted for UI, and goes on a week-to-week basis.
But severance $ received does factor in when UI is determining what an applicant/participant's income is, too. You can be eligible for receiving UI, but still not get any $ from them for that week, if your severance or other payouts from your job which laid you off pays you that $ then.
411: https://www.thebalancemoney.com/how-does-severance-and-vacation-pay-affect-unemployment-2064190#toc-how-severance-pay-affects-unemployment
State by State 411: https://www.careeronestop.org/LocalHelp/UnemploymentBenefits/find-unemployment-benefits.aspx
Best to get the ball rolling with UI ASAP anyway, so you're in the mix to either start getting paid sooner, or once all of your payouts from being laid off are DD to your bank account/s.
@a2 You can apply for unemployment as soon as your last day. Severance will not affect your unemployment eligibility.
These questions just show how much you needed to be let go.
@OP today was my last day on payroll (July 17) and have not received last paycheck or PTO
also do we have to wait til after the lump sum to apply for unemployment? Or can we do it now and the severance won’t disqualify you??