Do you know if the company will be giving you the severance in a lump sum (that’s what it sounds like), or over time (sort of like a regular paycheck)? In the two times I was laid off, my severances were structured like the latter, which made the tax impact less of a pain.
As I recall it, I couldn’t file for unemployment until the day after my final actual paycheck (severance checks weren’t considered to be actual employment), but you will want to check your state laws.
{{{ ivylass }}}
Don’t forget civil service! My dad was 57 when he got hired by the Veterans Administration and stayed with them until he retired 14 years later.
I would prefer it over time, but I don’t think that’s an option.
I work in sports cable tv, sales operations.
Remember that severance can also be negotiated. It sounds like they are giving you 2 weeks for every year of service, which is fairly standard, plus your unpaid bonus and unused vacation. While there isn’t any statutory requirement for severance in the US, unless it is included in any contract you may have, doesn’t sound like it.
Your best bet is to appeal to their guilt of letting go such a long time employee. I would suggest, if you haven’t signed anything yet, is to ask that in addition to your lump sum payment, is that they keep you on payroll and benefits through January 1st of next year. That way your benefits would continue through January 2019, and that you could still claim employment with the company for the next 2 months while you are looking for new employment.
When this happened to me, I negotiated the severance as regular paychecks and delayed unemployment filing until the severance ended. - all to keep out of a higher tax bracket.
I just called HR, and they said they’d look into it. I’m sure the company would like to wash their hands of me, but I’d rather not get the tax hit.
ivylass, I am so sorry to hear this. I was laid off in early September, and I got a new job relatively quickly. However, after enduring the daily flood of emails from LinkedIn and Indeed, I can honestly say I did not find either of those sites particularly useful for the job search. I think that the best service they perform is to get you seen by recruiters, which, if you want to go the contracting for a bit, is not a terrible road of pursuit. That is, you might be able to find a contracting gig that will give you something while you continue searching for a longer-term position.
I had more interviews with companies in which I knew people or had been referred by people I knew directly. So, my advice is to start with your network of friends with whom you have had a real (face-to-face) relationship in the past. I feel those contacts will get you further than the instant connections made through LinkedIn or other networking sites.
I live in Kansas, but got laid off from a Missouri company. Therefore, I had to apply for unemployment benefits from Missouri. Each state is going to have its own rules and hoops through which you will need to jump, and they suck. My guess is that they make it as difficult as they can to avoid handing out money.
As far as the Missouri rules go, I was “penalized” for my final paycheck. I was laid off on the second Monday of the pay period, and received my final paycheck on the Friday following. In Missouri, you request benefits for the week previous week. (There is also a waiting period of 1-2 weeks in Missouri.) Thus, since I technically had income for that final week (all 2.5 hours of it), it would have counted against me and would have made me ineligible for benefits had I not been in the waiting period. I didn’t receive my severance package until about a month later, and, at least in Missouri, the actual severance package does not get counted against your unemployment benefits.
I have to admit that jumping through all the job-search hoops (minimum of three job-search contacts/applications per week) and doing the weekly paperwork for what was a relatively small sum of money each week seemed ludicrous, until I realized that each of the weeks for which I have received/will receive benefits paid for one bill or another, so it was a matter of perspective.
Of course, every state is going to be different. My daughter was laid off earlier this year and was seeking Kansas unemployment benefits, and they were really strict. She also had to have three job search contacts each week, but hers had to be different. For me, interviewing with a recruiter on Monday for a position at a company and then interviewing with the same recruiter on Thursday for a different position at that company counted as two separate contacts, but for her, they counted it as only having a single job search contact.
Stay strong! Get drunk, cry, be upset, but also know that you can rise above this.
Your ultimate taxes should be the same either way, as long as they don’t increase withholding under the assumption you’re making 40 times your regular pay. (you’re income isn’t changing, just the pay period).
If you’ve stopped working today & they lump your last two paychecks together, you should be able to file for unemployment sooner than (one waiting week after) Nov 15th.
Obviously, the answer can be state-dependent but no, severance is not employment, especially if it’s paid out in lump sum. He’s no longer working there, he’s no longer getting any checks (since they paid out severance in lump); why do you think he would he be considered employed by them anymore?
Though, if she gets a lump sum equal to 40 weeks of pay, in November of this year, that’d make her annual income for 2018 substantially higher than it would have been otherwise (since she’s getting over half of what would have been her regular salary in 2019 paid this year), it could well push her into a higher tax bracket for calendar 2018.
I made an appointment with our accountant on Monday to go over the tax implications.
I’m so sorry this happened to you. Best of luck going forward.
Ivylass,
Sorry to hear of your job loss - it’s happened to me twice. The first time I didn’t see it coming; the second time everyone knew our company was closing. By all means, have a few drinks (be safe, of course).
This is strictly my opinion and I’m not an HR expert, but I don’t think you necessarily need to pay someone $200-300 to format a resume. For one thing, you should never use just one resume; you should adapt your resume for each job you apply for.
Job hunting is a multi-step process that involves a lot of steps, and a lot of work. Treat job hunting like it’s your full-time job. Get up at your usual time, put on work clothes, and make a schedule that includes researching the kinds of jobs you want, tailoring your resumes and cover letters to those jobs, and meeting people in the field.
One last thing: it’s better if you can stay in the job market somehow. Consider temping if you have to, even if the job and pay are maybe a little ‘beneath’ you. Even if it’s not quite your field, you’ll look better by being in the job market doing something. And if you’re in the right place, you might find jobs that are not advertised.
**Mod Hat On **
No clue why you thought the last line was appropriate. I am hoping it is an unfortunate typo since the rest of your post is supportive and helpful.
Howvere, if you actually meant that line, dial it back for this forum.
Ouch! I’m very sorry. Facing that myself, perhaps, in June.
Do you think your skills are really out-of-date? How can a TV sales operation today not be using current technology?
Contact your unemployment office right away. They were always very helpful during my 6 year layoff, and always very nice. Their reconfirming phone system was extremely rude though.
The very best of luck to you.
The company is giving me access to an outplacement service, resume writing and such. I’m calling them tomorrow.