Q) If I’m am newly collecting a involuntary severance for 100 of my pay will I be eligible for unemployment now or at the end of my distribution.
A) Whether or not you can collect unemployment benefits while receiving severance pay depends on the state in which you live. In some states, you can collect both benefits, while in others, you have to choose one or the other.
To find out what the rules are in your state, you can contact your state’s unemployment office. You can also find more information on the U.S. Department of Labor website.
Here are some general things to keep in mind about collecting unemployment benefits while receiving severance pay:
- The amount of your unemployment benefits may be reduced by the amount of your severance pay.
- You may have to repay some or all of your unemployment benefits if you receive severance pay that is later determined to be taxable income.
- You may need to file a separate claim for unemployment benefits if you are receiving severance pay.
If you are considering collecting unemployment benefits while receiving severance pay, you should contact your state’s unemployment office to learn more about the specific rules in your state.
General requirement for unemployment insurance benefits is:
Have received enough wages during the base period to establish a claim.
Be totally or partially unemployed.
Be unemployed through no fault of his/her own.
Be physically able to work.
Be available for work which means to be ready and willing to immediately accept work.
Be actively looking for work.
Meet eligibility requirements each week benefits are claimed.
Be approved for training before training benefits can be paid.