Problem is, often the payments over time also include continued company medical benefits (much cheaper than COBRA) ... if you can get lump sum with continued medical benefits for a fixed period of time, that's the best of both worlds ...
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Unemployment after getting a severance package?
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Problem is, often the payments over time also include continued company medical benefits (much cheaper than COBRA) ... if you can get lump sum with continued medical benefits for a fixed period of time, that's the best of both worlds ...
C'mon the guy doesn't know what words to capitilize and what not to in a sentence.
You can't expect someone at the DM level or perhaps even higher becuase they did say 'Top Mangament' to do something like google Ohio.gov!
I was job eliminated after 27 years w/company. They calculated 83 weeks severance. If you took the lump, which I did, you get 75% of that figure, then they collect 25% Fed. taxes, and Fed MED/EE and Fed OASDI/EE. I applied for Florida unemployment, which max $275/week. Just got a letter disqualifying me from benefits until 4/13/13. I plan to appeal, any similar experiences?
Drug Dumper
Well-Known Member
- Drug Dumper Nov 12, 2011 at 07:54: PM
Drug Dumper
Well-Known Member
I've not heard of a state figuring the number of weeks a lump sum would cover. What was the reason stated in the letter? Did the company you worked for inform the state that your lump sum was the equivalent to 83 weeks?
When you appeal, make sure you just state you received a lump sum -- don't state the # of weeks it covers.
When you appeal, make sure you just state you received a lump sum -- don't state the # of weeks it covers.
Anonymous; said:
Just curious, what did you see as the benefit in taking a lump sum at 75% of total payout? Was there a stipulation that stated it was not guaranteed for the 83 weeks if you found alternate employment in that time and terminate on your new start date with future employment? That would seem like the only logical option to take lump sum for .75 cents on the dollar.
Anyway, I hope that you are in a new position by now and it is a non issue. These companies over expand and put good people in these terrible situations. I love it when companies talk about loyalty. They expect one way loyalty you loyal to them and that is it. I get sick and tired of hearing about loyal highly tenured reps getting let go.
If the company wa actually loyal to their most loyalist tenured rep why would they not approach you and say "John / Jane as you know we are having a difficult time here at xyz and can no longer retain all current employees due to our finances. However, we regonize the value that you have brought to the company after over your 27 years with us. We want to keep you if you could work with us a bit. Would you be willing to take a 25% pay cut for the next year. If we can hit our new goals we will increase your salary according and pay you the interest on the difference until we can get you back to where you need to be
I feel this would be the right way for a company to act.
27 years is a marriage and they wanted you out in my opinion because you had a large base which is common with being older. Where is the loyalty anymore this is what makes me sick. I know they have never had a layoff at cook medical despite falling sales at some time. The pay is lower than pharma and have many reps who are looking for security as opposed to constant threats of layoffs.
Anyway, sorry for getting on my soap box, your situation just makes me mad as I realize once I hit 50 or 55 I will be washed up in the companies eyes no matter how great my number are. Best of luck to you and anyone else in your situation. I am praying that we all can once again regain controls of our careers. God Bless and let me know if you find a company who really values loyalty and considers tenured employees there most valuable assets. Early into my career at my first NSM I was amazed when we had our 20 25 and 30 year service awards. It was a big deal and all of us youngsters at that time would always say we can retire with this company as long as we continually perform.
Anonymous; said:
Just curious, what did you see as the benefit in taking a lump sum at 75% of total payout? Was there a stipulation that stated it was not guaranteed for the 83 weeks if you found alternate employment in that time and terminate on your new start date with future employment? That would seem like the only logical option to take lump sum for .75 cents on the dollar.
Anyway, I hope that you are in a new position by now and it is a non issue. These companies over expand and put good people in these terrible situations. I love it when companies talk about loyalty. They expect one way loyalty you loyal to them and that is it. I get sick and tired of hearing about loyal highly tenured reps getting let go.
If the company wa actually loyal to their most loyalist tenured rep why would they not approach you and say "John / Jane as you know we are having a difficult time here at xyz and can no longer retain all current employees due to our finances. However, we regonize the value that you have brought to the company after over your 27 years with us. We want to keep you if you could work with us a bit. Would you be willing to take a 25% pay cut for the next year. If we can hit our new goals we will increase your salary according and pay you the interest on the difference until we can get you back to where you need to be
I feel this would be the right way for a company to act.
27 years is a marriage and they wanted you out in my opinion because you had a large base which is common with being older. Where is the loyalty anymore this is what makes me sick. I know they have never had a layoff at cook medical despite falling sales at some time. The pay is lower than pharma and have many reps who are looking for security as opposed to constant threats of layoffs.
Anyway, sorry for getting on my soap box, your situation just makes me mad as I realize once I hit 50 or 55 I will be washed up in the companies eyes no matter how great my number are. Best of luck to you and anyone else in your situation. I am praying that we all can once again regain controls of our careers. God Bless and let me know if you find a company who really values loyalty and considers tenured employees there most valuable assets. Early into my career at my first NSM I was amazed when we had our 20 25 and 30 year service awards. It was a big deal and all of us youngsters at that time would always say we can retire with this company as long as we continually perform.
AnswerMan4Ever!
Active Member
- AnswerMan4Ever! Dec 06, 2011 at 08:04: AM
AnswerMan4Ever!
Active Member
What the poster must have meant is, of the lump sum 25% went to taxes leaving him with 75% of the total.
And I bet there was no choice of taking the lump sum or some other form of payment. The choice was taking the lump sum and signing papers to never sue the company, or nothing.
And I bet there was no choice of taking the lump sum or some other form of payment. The choice was taking the lump sum and signing papers to never sue the company, or nothing.
In Florida the rules changed in August 2011 and the state started deducting severance payments from the eligible unemployment amount. In my case severance was above the $275 unemployment therefore making me ineligible for unemployment until my severance runs out.
I didn't appeal the decision. However, I wondered if I had taken a lump sum severance (paid out in one payment, but with a penalty) would the same decision have been made. I didn't ask, but might be something to look into.
I didn't appeal the decision. However, I wondered if I had taken a lump sum severance (paid out in one payment, but with a penalty) would the same decision have been made. I didn't ask, but might be something to look into.
I live in Indiana and will be receiving a severance package contingent upon my signing separation "agreement" paperwork.
My question is why are the number of weeks that I get a Lump sum payment for going to be subtracted from the total number of weeks that I can collect. So if I get the equivalent of 20 weeks of severance pay which will be more like 10 after taxes on lump sum will they also subtract those 20 weeks from the total weeks I am entitled to???
My question is why are the number of weeks that I get a Lump sum payment for going to be subtracted from the total number of weeks that I can collect. So if I get the equivalent of 20 weeks of severance pay which will be more like 10 after taxes on lump sum will they also subtract those 20 weeks from the total weeks I am entitled to???
Yes. You cannot double dip by claiming unemployment while still receiving severance pay. And, since evidently you're a Lilly soon to be ex-employee, you should know the HR site states the payment will be made 45 days after you sign. ie: you wait 45 days.
Looking for info in TEXAS - Company closing office & eliminating positions so given a Severance based on years. This will be paid in one lump for 24 weeks worth of pay - I will apply for unemployment right away but will they make we wait for 24 weeks to pay?
TEXAS Specific – if getting a lump sum severance payout will I still have to wait for the weeks it accounts for to go by or could I get unemployment right away?
http://www.twc.state.tx.us/news/efte/final_pay_severance_benefits.html
Sounds to me like you have to wait.
f. Anytime an employer is paying severance pay or wages in lieu of notice, that information should be provided to the Texas Workforce Commission local office on any response to an employee's claim for benefits. Keep in mind that such additional pay will not stop receipt of unemployment benefits, but payments will be delayed until the until the payment's period of coverage has expired. This can result in substantial savings to an employer because many people will have found another job by the time they are eligible for benefits.
Ever get those SS statements in the mail with the exact income that you received each year?
It is not difficult for a state organization to get that info. One click.
Once they know the number of weeks paid out for your severance, then your unemployment can begin the following week.
It is not difficult for a state organization to get that info. One click.
Once they know the number of weeks paid out for your severance, then your unemployment can begin the following week.
If you are laid off you employer will provide you with the involuntary termination notice that is required by most states to qualify for unemployment insurance. Once you have that letter nothing else matters and you can still receive a lump some or ordinary payroll payouts for severance as severance does not preclude you from receiving your unemployment benefits in most states.
Yes, collect unemployment and a severance package.
Yes, you can collect unemployment and a severance package. Is your severance "conditional?" There is your leverage. But, you MUST be proactive. File for unemployment the first day following your termination (aka layoff, downsize, company closure)
I've been through this twice. Every state is different. In most cases, if your Severance Package Exceeds (in total) the maximum payout in unemployment benefits, YOU WILL NOT RECEIVE any unemployment. ... unless you act quickly
For example Washington D.C. is about 30,000/annually for a family of four. If your severance package is 30,000 or more (regardless if in a lump sum or bi wk over time), you received NO unemployement benefits AND YOU ARE NEVER COUNTED AS UNEMPLOYED...(ever wonder how that number stays so low 7-8 percent).
The first time this happened to me.... I quickly appealled the decision with my state's DLLR. The language in the Severance Package included a non-compete. Severance is un conditional. It was decided the money paid by my ex-employer was in exchange for my not competing.
The second time this happened to me.... The quasi Severange Package included a non-compete and several non-disclosures and very specific confidentiality clauses. I did not sign it until the company re-worded into a Separation Agreement and put in writing that they would not deny me unemployment.
Good luck.
Yes, you can collect unemployment and a severance package. Is your severance "conditional?" There is your leverage. But, you MUST be proactive. File for unemployment the first day following your termination (aka layoff, downsize, company closure)
I've been through this twice. Every state is different. In most cases, if your Severance Package Exceeds (in total) the maximum payout in unemployment benefits, YOU WILL NOT RECEIVE any unemployment. ... unless you act quickly
For example Washington D.C. is about 30,000/annually for a family of four. If your severance package is 30,000 or more (regardless if in a lump sum or bi wk over time), you received NO unemployement benefits AND YOU ARE NEVER COUNTED AS UNEMPLOYED...(ever wonder how that number stays so low 7-8 percent).
The first time this happened to me.... I quickly appealled the decision with my state's DLLR. The language in the Severance Package included a non-compete. Severance is un conditional. It was decided the money paid by my ex-employer was in exchange for my not competing.
The second time this happened to me.... The quasi Severange Package included a non-compete and several non-disclosures and very specific confidentiality clauses. I did not sign it until the company re-worded into a Separation Agreement and put in writing that they would not deny me unemployment.
Good luck.
I filed my unemployment claim the day after my separation date (last day at work). I reported that I received severance, and it was in the separation contract that I signed that I would receive 8 weeks worth of severance pay, so I was told by Texas unemployment benefits office that I would have to wait out the full 8 weeks before I would receive my first unemployment check. Based on what the representative said on the phone to me, I do not think I will be receiving any back lump pay through Texas for the first 8 weeks officially unemployed. So 4 more weeks before I receive any kind of unemployment compensation from Texas.
FYI - after taxes, my severance pay was not really "8 weeks worth" because it was a lump sum - 30% of my check was taken for taxes. So I was lucky to get anything from my last job, but some serious budgeting has to be done to keep me afloat.
FYI - after taxes, my severance pay was not really "8 weeks worth" because it was a lump sum - 30% of my check was taken for taxes. So I was lucky to get anything from my last job, but some serious budgeting has to be done to keep me afloat.
That's why a lump sum payout is better for the employee. It allows you to get unemployment faster and maximizes your take home pay.
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I was recently laid off for "purely economic reasons" in my LabCorp sales role.
No PIP, no training, no account handoffs from the orevious and re-aligned rep that managed my territory.....total BS but I understand they had to trim and cut costs.
Tomorrow, I start my unemployment application in my home state. I am also going to file in my bordering state, where I also worked and again in NC, where LCA is headquartered. Will I be successful in 3 states simultaneously?
No PIP, no training, no account handoffs from the orevious and re-aligned rep that managed my territory.....total BS but I understand they had to trim and cut costs.
Tomorrow, I start my unemployment application in my home state. I am also going to file in my bordering state, where I also worked and again in NC, where LCA is headquartered. Will I be successful in 3 states simultaneously?