Does Severance payments affect unemployment benefits

Sorry about the layoff. I do not think that'd be an issue, but I can't be certain. Contact the state office Monday, file for the benefits, and then look for a better job. Best of luck.

I think it just pushes back your eligibility. If you got, say, 4 weeks of severance, you can start unemployment in 4 weeks, but still collect the full 26 weeks.

Severance is just what my ex company pays any management when they are laid off.

1 paycheck for every year worked.

Well crap.

I'm getting 5 installment payments one every 2 weeks for $2000 looks like I will not collect until October. I plan to be employed well before then.

Thanks everyone for the input.

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($247/week is the max in La)

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When is it ever worth applying for this? What's the point?

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OldSouth

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When is it ever worth applying for this? What's the point?

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To be quite honest, I'm not sure many that are higher up on the socio-economic ladder of life realize this is a relatively sizable amount. Yes, states like Massachusetts (over $600 I believe) are much, much higher, but they're also chronically underfunded and have folks game their system routinely (Union employees love working in Massachusetts so they can file for their benefits in MA, for example. They also had a pilot program that provided claimants used/refurbished cars to help them search for work. Yeah).

Someone that gets laid off from Jacobs as an Engineer may not have need for <$1,000/month. Then again, my wife and I both work fulltime, and if either one of us were separated from employment and had to file and were approved, that maximum amount would pay our PITI on the house note like clockwork. It'd do so for up to 6 months, in a nightmare scenario.

Its never been intended as a way to make your payments on the timeshare in Gulf Shores. Just that many folks who may less money need it and its very useful.

Its also routinely fraudulently obtained, but that's another story for another day.

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Anything you collect in any week in which you receive that $247 (actually, it has gone down to $225 or something now) gets deducted straight from that $247 (er, $225).


The state max is $247. Many folks elect to get the 10% federal withholding tax taken out. Its rounded up to $25 from $24.70, which leaves you a $0 tax burden-federally speaking-on that income when you get your 1099 on it (yes, the feds view Unemployment Insurance benefits as taxable income).

So, $247-$25=$222. It hasn't gone down. Its just that more folks elect to not have to pay a larger lump sum come taxman time.

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Naw wasn't the withholding.

Found it - has to do with sequester:

"The Budget Control Act of 2011 requires a reduction in the benefits paid through the Emergency Unemployment (EUC) program. In accordance with the Budget Control Act of 2011 (Public Law 112-25), the sequestration reductions to your Emergency Unemployment Compensation (EUC) claim are as follows: a 16.8% reduction was applied to your original weekly benefit amount of $247 and a reduction* was applied to your remaining balance of $xxxx as of xxxxxxxx for the EUC claim that began on xxxxxx."