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Re: Transition from employee to consultant--any gotchas?
Subject:Re: Transition from employee to consultant--any gotchas? From:"Gene Kim-Eng" <techwr -at- genek -dot- com> To:"TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com> Date:Wed, 25 Aug 2004 06:45:12 -0700
This will vary from state to state, but if severance is paid over a period
of time and benefits continue as well, the payments may be considered
"pay in lieu of notice," and will affect UI. The deciding question is
usually what the official date of termination is. I was RIF'd from my
previous position in Jan of 2003, and received salary and benefits
extension until the end of March and a termination letter that listed my
end date as 31 March. Until that date the company continued to reply
to all inquiries about my employment by saying I was an employee.
Check with your management for the exact terms of your separation.
Severance has nothing to do with collecting unemployment. It is not
considered salary, no matter how they pay it out. All the unemployment
office cares about is that you are searching for a new job and if you earn
$$ during that time. What does stop the unemployment is if you become a
contractor.
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