Does Severance payments affect unemployment benefits | TigerDroppings.com

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LSUBrad5277
LSU Fan
North Louisiana
Member since Jan 2011
12556 posts

Does Severance payments affect unemployment benefits


I was laid off last week when my company from 3 shifts to 2 shifts.

Does the severance package my company provided me affect my unemployment from louisiana.

I will receive 5 bi-weekly payments (around $1900 before taxes) starting with July 19 and ending sept 11.







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LSUBrad5277
LSU Fan
North Louisiana
Member since Jan 2011
12556 posts

re: Does Severance payments affect unemployment benefits


I googled it and got different answers was wondering if anyone has been down this road in the past.





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OTIS2
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NoLA
Member since Jul 2008
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re: 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.


This post was edited on 7/14 at 4:21 pm


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StrangeBrew
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re: Does Severance payments affect unemployment benefits


I would assume that after severance payments stop you would be eligible.





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Overbrook
Tulane Fan
Member since May 2013
1619 posts

re: Does Severance payments affect unemployment benefits


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.





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Volvagia
LSU Fan
Baton Rouge
Member since Mar 2006
40531 posts

re: Does Severance payments affect unemployment benefits


It may very from place to place and what is the source of the severance.

I think vacation time payments are subtracted from the state liability of unemployment paynents.






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LSUBrad5277
LSU Fan
North Louisiana
Member since Jan 2011
12556 posts

re: Does Severance payments affect unemployment benefits


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

1 paycheck for every year worked.






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GFunk
LSU Fan
Denham Springs
Member since Feb 2011
8457 posts

re: Does Severance payments affect unemployment benefits


Severance payments are deductible from unemployment benefits the week in which they are paid. Whether severance is paid in a lump sum or staggered over a defined period of time, if you receive an amount that exceeds your weekly benefit amount ($247/week is the max in La) then that week is considered excessive and no benefits will be paid.

My advice: file your claim the day you are separated from your job. Indicate you will receive severance, and fax a copy of the checkstub or proof of severance payment ASAP.

Dont forget about disclosing whether you received accrued vacation pay, as it also may be deductible as well.

www.laworks.net will provide a link to file for benefits online.



This post was edited on 7/14 at 7:49 pm


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Meauxjeaux
Memphis Fan
I have 89,275 posts with my alters
Member since Jun 2005
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re: Does Severance payments affect unemployment benefits


quote:

Severance payments are deductible from unemployment benefits the week in which they are paid. Whether severance is paid in a lump sum or staggered over a defined period of time, if you receive an amount that exceeds your weekly benefit amount ($247/week is the max in La) then that week is considered excessive and no benefits will be paid.


100% this.


quote:

My advice: file your claim the day you are separated from your job. Indicate you will receive severance, and fax a copy of the checkstub or proof of severance payment ASAP.


And kinda this. If you can, finagle a way to get all of the severance documented in your first week of UE. You don't collect UE the first week you file - I think it's called a 'week of waiting'. If you can show you got severance that week, your subsequent weeks won't get docked.

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).






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LSUBrad5277
LSU Fan
North Louisiana
Member since Jan 2011
12556 posts

re: Does Severance payments affect unemployment benefits


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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VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
10834 posts

re: Does Severance payments affect unemployment benefits


quote:

Well crap.

I'm getting 5 installment payments one every 2 weeks for $2000 looks like I will not collect until October.


You can't double dip. That's called working the system and it's illegal. Unemployment benefits are for when you are receiving little to no income and severance pay does not fall under this category.






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OldSouth
LSU Fan
Folsom, LA
Member since Oct 2011
8320 posts

re: Does Severance payments affect unemployment benefits


quote:

($247/week is the max in La)
When is it ever worth applying for this? What's the point?






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GFunk
LSU Fan
Denham Springs
Member since Feb 2011
8457 posts

re: Does Severance payments affect unemployment benefits


quote:

Meauxjeaux
quote:

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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GFunk
LSU Fan
Denham Springs
Member since Feb 2011
8457 posts

re: Does Severance payments affect unemployment benefits


quote:

OldSouth
quote:

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


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.



This post was edited on 7/15 at 9:24 am


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LSUBrad5277
LSU Fan
North Louisiana
Member since Jan 2011
12556 posts

re: Does Severance payments affect unemployment benefits


Believe me if I can find something else by the time I'm eligible I will not be drawing a dime.

I would much rather be working but if I don't have something then $222 a week will help pay light bill, or phone bill, or buy food for my family until something comes around.

I have only drawed it one time for 3 months back in 2001 and if I never draw it again that is fine with me. I am no deadbeat and would rather be working.






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Meauxjeaux
Memphis Fan
I have 89,275 posts with my alters
Member since Jun 2005
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re: Does Severance payments affect unemployment benefits


quote:

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.


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."



This post was edited on 7/15 at 6:20 pm


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GFunk
LSU Fan
Denham Springs
Member since Feb 2011
8457 posts

re: Does Severance payments affect unemployment benefits


quote:

Meauxjeaux


quote:

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."


That applies strictly to EUC claims, which are a federally funded program. The state benefits have not been affected by sequestration and will not be.






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