Re: Transition from employee to consultant--any gotchas?

[woman with_catz <jlarnopolin -at- sbcglobal -dot- net>]

actually, that is at least partially incorrect.
if severance is paid as "salary continuation" it is
considered qualifying income and prevents you from
qualifying for and collecting unemployment insurance
benefits.
 
if, however, it is paid as severance - i think the
phrase is "severance in lieu of salary", even if over
a period of time, AND you are NOT covered by your
former employer's benefit plan - that is you're
getting health care etc. that is COBRA, severance is
considered "non qualifying" income and you can collect
unemployment benefits.
 
there is always, in illinois, a waiting period.
 
your HR benefits coordinator may be telling you one
thing, but reporting it to the state as something
different.
 
hope this helps.
jan

peemo -at- hotmail -dot- com wrote:

Dood wrote:
> Severence does not prevent you from getting
unemployment. 

Dood, the laws must be different wherever you live. It
does indeed
prevent it--at least here in the Midwest. That is in
all the instances I
know where the payments were made over the course of
several weeks or
months. Unemployment did not kick in until two weeks
after the last
severence payment.

I don't know about a lump sum severence payment, for
I've not seen that
done.

pam



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