Does anyone know if this affects the amount of unemployment you may receive?
If you've been through this since the policy changed and are commenting, please include your state if you don't mind as state unemployment laws may differ.
Thanks
2 replies (most recent on top)
In Pennsylvania you should absolutely file an unemployment claim. Sign up, read the manual and ask for clarification/assistance. You may get less but even then that doesn’t mean you shouldn’t apply for benefits. You paid into the system. Use it.
It depends on the state. Because the prior version was considered a benefit it did not impact unemployment. The new severance is considered fully taxable income.
In MA, because the severance policy includes a “release of claims”, aka you won’t sue, you are technically eligible for unemployment. However, the amount you receive in severance is included in the calculation of your benefit. I haven’t been through it but considering unemployment is only 50% of your pay, when the state calculates your benefit, the amount you are receiving for severance is deducted so essentially it will be zero.
For whatever state you are in, you can probably just google “in the state of x an I eligible for unemployment if I receive severance”. There will likely be some law offices with explanations.