Is it possible to collect unemployment if you receive severance?
13 replies (most recent on top)
Yes, file immediately after you're off the payroll, so the day after your official last day. Your severance comes as one lump sum 90 days after your off payroll date. I was surplused last year after 10 years there.
Check your state website. Most cases company pays.
I was voluntary in Illinois and still collected because the company asked for volunteers. Illinois said if I quit, no unemployment, but because I received severance, I was terminated. Benefit base on prior 2 quarters. I waited 5 months. The 5 months were the current quarter and prior quarter (#1). So my two benefit quarters were #1 and #2 (still working). The amount made in #2 was enough to reach maximum benefit. I collected for 6 months, all in the FOLLOWING year. All came at a lower tax rate and the severance covered me for the time I waited. Employee bonus did not count.
Note that in Texas, it takes the state at least a month to verify and process your unemployment claim, then it withholds your first week of unemployment. Bottom line is, you'll wait at least five weeks after you file to collect anything. So plan ahead for that.
File for unemployment after you receive your last payment for the current year. Don't wait for deferred bonus. AT&T will not dispute an "involuntary" termination even if you volunteered for it. Good luck!
i think UrgZ3at-lbj is correct according to the laws in Texas. You will need to wait say 2 months if you get paid severance for 2 months. That way they figure you will not count as an unemployment statistic if you are not actively searching and looking since you cannot collect unemployment yet. They figure you will probably get a job sometime during that period, so that is why Texas can brag about a low unemployment rate compared to other states. In any event, I would suggest contacting TWC (they are a joy to work with) and clearing it up. As HR will tell you, check your local laws.
I was surplussed in NC. I was able to collect unemployment checks after I had received my job bank $ and the rest of my severance pay. All the posts here are correct---each state has a different policy.
EVERANCE PAY BY CONTRACT AND TEXAS LABOR CODE UNEMPLOYMENT BENEFITS
The Texas Legislature also permits unemployment benefits while an employee receives severance pay agreed to in a contract between employer and employee made prior to termination. This includes severance pay as part of an offer letter, a collective bargaining agreement or other employment contract. The severance pay is usually included as a contracted form of compensation to the employee if the employee works a length of time or employment ends for some reason other than employee misconduct. Here the severance pay is considered compensation already earned by the employee through prior labor.
This is different from severance pay as part of an employer’s policy to pay severance pay as part of its unilateral decision to end the employment relationship. If the employer conducts a reduction in force and grants severance pay then this exception does not apply. Alternatively, if the employer solicits voluntary layoffs with severance then likely the exception would apply.
***our severance is part of a collective bargaining agreement - so is this a yes or no
Definitely depends on the state. I am in TN and was able to collect unemployment.
If you are on the impacted call, ask HR. Also note that Severance is paid after 45 days off payroll in lump sum. It will be taxed at a different rate than your payroll wages (assuming you are paid weekly/biweekly).
In Texas you will be able to take unemployment however you will not receive the unemployment for the number of weeks of your severance. For example if your severance package is 8weeks pay or two months then you will not receive unemployment until after that period of time. Or you canc collect unemployment and when paid out the serverance report it since you technically did not have it until then and they will withhold the unemployment pmts for the same amount of time as the severance plan.
In my state (MO), taking an offer and leaving voluntarily makes one eligible for unemployment. The test is whether the offer was made to reduce force.
It's a state by state thing, so don't assume.
Yes check with your state for sure...but generally what you'll probably find is that if you were laid off (involuntary) surplus, yes you will be eligible for unemployment. If you took an offer and left voluntarily you will likely not be eligible for unemployment.
Depends on your state. Use Google.