I got 6 months severance. Can I apply for unemployment insurance as well?
What are peoples experience here
8 replies (most recent on top)
I can confirm that there are no 401K contributions made from the severance money. So dial it up if you think you may be impacted by the EOY
In WA, as long as your severance is paid in a lump sum, it doesn't impact your unemployment benefits.
PRO TIP: If you have 401k contributions coming out of your paycheck, you might want to turn that off before your last day. Get 6% deducted from typical paycheck isn't too bad...but a severance payout can be huge and (given that you are then unemployed) you might want to have that 6% in your pocket)
For the folks in Texas, could you please help me answer these questions? I don't want to mess up the unemployment form
Did you receive this additional payment instead of advance notice of layoff?Answer: No
Did the payment cover a specific time period? Answer: No
Was the payment given in exchange for a release of claim or as the result of a settlement agreement with the employer? Answer: Yes
If Yes, was the release of claim or settlement agreement based on an alleged violation of the Civil Rights Act? Answer: Yes
If Yes, was the release of claim or settlement agreement because of a claim or cause of action filed in connection with your employment? Answer: Yes
Was the payment given in accordance with a written contract or collective bargaining agreement negotiated before the work separation? Answer: No
Here is some additional material that I found https://www.twc.texas.gov/sites/default/files/ogc/mtg19/commission-meeting-materials-020519-ch815-13-renumeration-twc.pdf
That's not how it works in MA. If you were laid off and get severance, your severance agreement will be reviewed. If you receive a lump sum in exchange for a full release of claims against your employer, your severance will not impact your ability to get unemployment. Maximum 26 weeks of unemployment in addition to severance.
It verys state to state. If got severance package some states count that as income so can’t collect unemployment until it runs out based on what make at time. Other states don’t count servance pkg and you can apply and collect unemployment immediately.
New York State will ask tons of questions on the form. You will have to give your weekly salary, they take severance check and divide by the weekly salary and you have to wait that many weeks before Unemployment Ins will kick in. If there is any bonus wrapped up in that check, it will add to the weeks you need to wait, could be more than the 26 weeks. The check you received that was halved by taxes they took out and the Cobra payments you will have to make will drain the rest but they don't care
Similar in TX, but 26 weeks. ALSO when you apply there is a question to the effect of whether the severance was payment in lieu of wages, or something like that. The correct and legal answer is NO. I unfortunately answered yes, and they said I was ineligible until a period of time had passed equal or greater than what the amount covered in weeks. In my long-timer case, would have waited a good while. Fortunately found work quickly and was not an issue for me. Remember, you are given a LUMP SUM (not ongoing salary), and boy do they tax it as such!
In Massachusetts, you also receive unemployment insurance for 30 weeks. But you need to call them and apply on their website. A person has to confirm the severance is based on a non-disclosure agreement. Then you must apply for three weekly jobs to stay enrolled and take some virtual training workshops.