severance and unemployment

[BlahBlahYouToo]

do you have to report severance as income? e.g. can you collect both at the same time?

what if it's paid out in a lump sum?

 

[spidey07]

It's in your best interest to include severance in your income as that will make your unemployment check larger as it's based on your annual salary. You're goal is to get the maximum allowed. In KY it's almsot 435 bucks a week, the equivalent to a 10.50 dollar an hour job.

 

[Patranus]

do you have to report severance as income? e.g. can you collect both at the same time?

what if it's paid out in a lump sum?

Yes.
(And you have to report and pay income taxes on your unemployment)

 

[BlahBlahYouToo]

so UI is based on the YTD income of the year you were laid off?
so if were laid off in Jan., you're screwed? that doesn't make sense.

 

[BoomerD]

What state?

Here in Kahleeforneeya, the EDD says:

Severance pay is not wages for unemployment insurance purposes. There is no specific code section in the California Unemployment Insurance Code which declares that severance pay is not wages. We cite Section 1265 when we state that severance pay is not wages. The authority for doing so is based on a case decided by the California Supreme Court in 1965.

http://www.edd.ca.gov/uibdg/Total_and_Partial_Unemployment_TPU_46035.htm

 

[BlahBlahYouToo]

Yes.
(And you have to report and pay income taxes on your unemployment)

i understand that. let me clarify.

i've never received serverance so i don't know if it gets paid out bi-weekly as your regular paycheck is, or if it's a lump sum payout. perhaps it varies per company.

if paid bi-weekly, will that still count as being "employed" since you're receiving income, which means you won't be able to collect unemployment checks?

or does that not count as employment, since you're not actually employed by anyone anymore, so you will receive both severance and unemployment checks?

 

[spidey07]

so UI is based on the YTD income of the year you were laid off?
so if were laid off in Jan., you're screwed? that doesn't make sense.

It would be projected to an annual income.

You will still get your unemployment check even if you're collecting severance. Severance can be a lump sum or they just keep give you paychecks for the time of severance.

That's what you call "double gravy".

 

[BlahBlahYouToo]

What state?

Here in Kahleeforneeya, the EDD says:



http://www.edd.ca.gov/uibdg/Total_and_Partial_Unemployment_TPU_46035.htm

ahhh, so it varies by state.

 

[duragezic]

so UI is based on the YTD income of the year you were laid off?
so if were laid off in Jan., you're screwed? that doesn't make sense.

In NY, it's based off the income from the highest quarter of pay in the past year.

 

[BlahBlahYouToo]

It would be projected to an annual income.

You will still get your unemployment check even if you're collecting severance. Severance can be a lump sum or they just keep give you paychecks for the time of severance.

That's what you call "double gravy".

so what difference does it make? if it's projected and i'm being paid the same rate (only the term differs; the severance pay is based on years of service with the co.), then my projected annual income is going to be the same regardless.

 

[BoomerD]

so UI is based on the YTD income of the year you were laid off?
so if were laid off in Jan., you're screwed? that doesn't make sense.

For most states, unemployment is based on the wages you were paid in the first 4 of the previous 5 quarters.

When an individual's base period begins depends on
when the UI claim is filed. The most recent 3-5 months
before the claim is filed are omitted; therefore, the base
period is the 12 months beginning some 15 to 17 months
before the claim was filed. For example, all claims filed
in April, May, or June would have a base period of
12 months beginning January 1 of the previous year
and running through December 31. All claims filed in
July, August, or September would have a base period
beginning in April of the previous year and ending
March 31 of the current year.

http://www.edd.ca.gov/pdf_pub_ctr/de1275a.pdf

(scroll to 1:3 and 1:4)

 

[darkxshade]

You get terminated for calling your boss fat or something?