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does anybody know if you quality for unemployment if your severance pay is paid out to you after a month of separation?

Thanks

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rated:
Unemployment could be paid along with severance pay. No,effects on each other. Usually, you want to apply to EDD before your termination.

rated:
I've been reading it very differently
https://labor.ny.gov/formsdocs/factsheets/pdfs/p825.pdf

rated:
That poster was in CA and has NO clue how NY does things.

You are eligible for NY UI regardless. The catch is if the severance is paid out within I think 30 to 31 days after your last day of work, you are then treated as being on the payroll and your UI payments and withheld until the severance has been netted out by taking the gross amount divided by your weekly pay while working.

Example: You get a 12-week severance package. Your UI payments will not begin until your 14th week of UI. That's 12 weeks of severance, 1 waiting week, and your 14th week being unemployed gets you a benefit.

Another catch would be if you're getting a very LARGE severance. Example: You get a 52-week severance. If you file for UI when you lose your job, by the time the severance has been netted out, your UI claim will have expired, and you'll get squat. In a case like that, you need to look at your base period and then you might want to wait 6-months to apply for UI but watch the QUARTER changeovers. You want enough wages in your base period to get a benefit, and you want enough weeks on the backend of your benefit year so that you can theoretically collect those benefits before your claim expires if you find yourself out of work that long.

If the severance is paid to you AFTER the 30 to 31 days, then you get your UI starting with the date of termination and you in a sense double dip. You get the UI AND your severance so you can make bank.

You probably can't control when your employer pays you your severance, but everything and anything you can do to delay it after your last day of work, you should do it. If the employer gives you two weeks to review the severance agreement, use the full two weeks.

rated:
Thanks for your detailed post!

1) never been in this situation but do most large employers provide severance pay right away or do some wait for after 30 days. I wonder if UI claims affects them negatively or not at all
2) If I am paid 26 weeks severance but get it after 30 days, will I double dip for the whole 26 weeks or is there a rule that I have to contact NYS to tell them I got sev pay

Thanks!
Thanks

rated:
lodak008 said:   1) never been in this situation but do most large employers provide severance pay right away or do some wait for after 30 days. I wonder if UI claims affects them negatively or not at all

I don't know what employers do, but the UI comes from their reserve account and affects their UI taxes. They'd be smart to get you your check right away, but now that you know, you can throw up road blocks and delay when it suits your purpose.

First-time claimants and those ignorant of how UI works lose $1,000+ of dollars, and then always say, "if I had only known."

lodak008 said:   2) If I am paid 26 weeks severance but get it after 30 days, will I double dip for the whole 26 weeks

Yes. Just because your employer gives you money doesn't always mean it's "wages" for purposes of UI. UI defines wages as money you work for. A severance is a gift. It's not reportable provided the employer pays you late enough if you're so lucky.

The likelihood that your UI will maintain your standard of living is close to zero. That's why it's so important to get the UI concurrently with severance so that you don't go in the hole. When you can achieve that goal, do it. You just can't count on it.
  

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