Does your severance pay get dispersed weekly or all at once?
kr8zcmt04 asked:
I got laid off and was given a severance package. The other employees had received theirs in one large payment where my money comes to me like my regular weekly paycheck?
I got laid off and was given a severance package. The other employees had received theirs in one large payment where my money comes to me like my regular weekly paycheck?
Can go either way, depending on what the company decides to do. They aren’t required to give severance pay at all. It’s strange though that some people would get a lump sum and some get payments.
Normally it gets paid in one lump sum. If you are getting yours on a weekly basis, you may be better off.
If you get paid in a lump sum, they take much larger withholding for taxes and you end up with maybe half. Of course, you get the extra back when you file your income taxes but if you lose your job, you need the money right away.
Did you sign a release document when you were laid off? If so, that document should indicate the payment terms. There is no rule here - only company practice.
BTW - most, if not all States allow you to collect unemployment and severance at the same time, so this will not negatively impact you.