So when I get laid off in about 7 months and I go to get my unemployment check, how much will I get? Is it a set amount? Is it dependent on my previous income (approx. $50k)? Will 3-weeks-of-pay severance mean anything? I’ve never gotten unemployment before. Does that matter? I know you have to pay income tax on it at the end of the year.
It depends upon your previous 18 months or 2 years wages (I forget which) up to the max which I think you should get.
As far as the severnce goes, it depends upon whether your employer considers it money continuation of wages or not. If continuance, you will probably not be able to collect until you are off payroll.
It does not matter if you’ve collected before.
Please note that my information may be out of date and the rules change at the whim of Congress. The best way to find out is to contact the local unemployment office near you.
FWIW, I am collecting $315 a week in unemployment and $102 in dependent child allowance for a total of $417 weekly. This is in IL and reflects my past work hsitory. When I was waiting in line, it seemed to be the standard amount. The benefit time is 26 weeks for a total of $8,200.
Note, I elected to have no taxes removed from this payment, I’ll deal with that in April, when I should have more money. I need the extra bit to live on!
There is a one week waiting period from the time you first apply so make sure you apply the DAY you are out of work. It’s prety painless…except for the constant day to day rejection that is todays’ job market;)
Re: severance etc> I don’t have a clue. My previous employer Fucked me out of my last two weeks pay so a severance deal was not in the picture!
I believe 315 is the max in IL. You can look on line and it will tell you the state’s max.
As for severence IT DOES effect unmployment. If possible get it in one lump sum. If they pay it weekly you are still getting paid according to unemployment. Therefore the lump sum is best.
Also you MAY be eligible for food stamps, rent relief, gas, electric, etc relief or delayed billiing. Look into it.
When I (and the rest of the Marketing Department) got the boot from the dot com we were working for here in San Diego, CA we all got some pretty nice severence (3 months worth) which was paid as a lump sum. I’m told I could have applied for unemployment that day, but I waited since I didn’t need it right away.
After about a month, I finally broke down and got it and found out that at least in California, the whole thing gets done by mail so there is no ‘waiting in line’. I was a more senior product manager making $80K, but even the junior people at $50-$60K got the same maximum unemployment check, which was $460 every two weeks.
The job market sucks out here too, of course, and I’ve been doing consulting work to make ends meet, which makes me feel like a prostitute
This is not necessarily true. Do not assume that continuation pay means you are ineligible for unemployment. If you wait, you might lose your entitlement to benefits. I have seen this happen. Check with your state department of labor and/or an attorney who does unemployment compensation work.
(standard disclaimer about legal advice)
Since unemployement is a state-administered program, the rules will indeed vary depending on where you are. In my state, the amount of pay is based on your average weekly wages for the previous 12 months. The payment is 50% of your gross, with a maximum of $303 per week for one person (increased incrementally, though not hugely, by dependents). When I was laid off I was given severance pay, and was not eligible for unemployment until that ran out; I think that is more the rule than the exception. However, taking my severance as a lump sum had other (negative) tax implications, so doing that to qualify for earlier unemployment benefits is not necessarily a good idea. It would depend in part on whether you expect to be back at work in a month (the earlier you qualify, the more you’ll collect, since you won’t reach the outer limit) or if you think this might be a long haul (tax-advantageous extended distribution of severance, unemployment thereafter to stretch it out longer). The time of year might also matter, since you will have made more in your working tax year than in your unemployment tax year, assuming you collect the full benefit and aren’t going to a significantly better-paying job – my severance ran out in January, which means I will have a very light tax hit this year, having only unemployment income (been living on savings), but I would have paid a much heftier bill had I taken a lump sum severance last year (a hit in itself) and then paid tax on unemployment as well. In my state the maximum time of benefits is six months – that’s six months in a qaulifying 12-month period, not necessarily six consecutive months (especially pertinent to people doing seasonal work, like construction).
I have never heard of anyone being able to collect unemployment while getting severence weekly. I have also never seen them denied after the lump sum payment.
I have worked in H/R and that was our advise. Of course since it varies from state to state I would check into it.
If you are liked another thing to check in is extending your health insurance. We have done this too.
My experience is from a couple of years ago in Ohio. Maximum weekly amount was $375. That was the most I could get having had a 100K salary and 2 or more dependants. You could not draw until the period of time covered by your severence had passed.
I wouldn’t be surprised to hear that the weekly maximum is now higher.
Not to overstate the obvious, but whatever they tell you to do to continue receiving unemployment checks, do it. In NJ, you must be actively seeking a new job. The first time I was on unemployment you had to write a letter and send a resume. The second time a phone call was sufficient.
Good luck.