Can You Get Unemployment If You Take Severance? Under California law, severance pay is not considered wages for unemployment purposes. Instead, it is considered a payment in recognition of your past service. Even if it is paid out in installments, as yours will be, it doesn’t count against your unemployment. Does severance count as employment
Do Most Severance Packages Include Health Insurance? However, severance packages typically include pay through the termination date and any accrued vacation time, unreimbursed business expenses, and an additional lump sum. By law, employers of a certain size must offer the opportunity to continue health care coverage under the company’s plan at the ex-employee’s expense. What
Does Health Insurance Consider Severance Pay As Income? Another important component of a severance package is the continuation of health benefits. According to the Consolidated Omnibus Budget Reconciliation Act (COBRA), employers must offer access to their health insurance plan for 18 months after termination. Is severance pay taxed like income? Severance pay is taxed by