Do you have to report severance pay for unemployment in New York?
Do you have to report severance pay for unemployment in New York? Learn the rules for reporting severance pay for unemployment in New York. Find out if you're eligible for benefits, and get tips for maximising your benefits.
Q + ASTATE LAWNEW YORK
Do you have to report severance pay for unemployment in the state of New York?
Yes, you must report severance pay for unemployment in the state of New York. Severance pay is considered income, and it can affect your eligibility for unemployment benefits.
Under New York's unemployment insurance reform law, which took effect in 2014, you are generally not eligible to receive both severance pay and unemployment insurance at the same time. However, there are exceptions to this rule.
If you receive your first severance payment more than 30 days after your last day of employment, you may be eligible for unemployment benefits. This is because the law only considers severance pay that is paid within 30 days of your last day of employment as disqualifying income.
If the weekly payments of your severance pay are less than the maximum benefit rate, you may also be eligible for unemployment benefits. The maximum benefit rate in New York is currently $405 per week.
If your employer gave you a lump sum severance payment, and the weekly pro-rated amount of the payment is greater than the maximum weekly benefit rate, you may still be eligible for unemployment benefits. However, your benefits will be reduced by the amount of the severance pay that exceeds the maximum weekly benefit rate.
It is important to report all of your income, including severance pay, when you file for unemployment benefits. If you fail to report your severance pay, you may be denied benefits, or you may have to repay benefits that you have already received.
You can report your severance pay online, by mail, or by phone. The New York State Department of Labor has a website where you can file a claim for unemployment benefits and report your income. You can also mail or fax a claim form to the department. To file a claim by phone, you can call the department's toll-free number.
Severance pay can be a valuable source of income after you lose your job. However, it is important to understand how severance pay affects your eligibility for unemployment benefits.
If you have additional any questions about whether or not you need to report your severance pay for unemployment benefits, you should contact the New York State Department of Labor.
Here are some additional resources that you may find helpful:
New York State Department of Labor website: https://dol.ny.gov/
How to File for Unemployment Benefits in New York: https://dol.ny.gov/you-apply-unemployment-frequently-asked-questions
Severance Pay and Unemployment Benefits: https://dol.ny.gov/dismissal-or-severance-pay-and-your-ui-benefit-p825-english