What is the difference between severance and unemployment benefits?

What is the difference between severance and unemployment benefits?

Severance pay is compensation from an employer after termination, while unemployment benefits are government payments for job loss.

Can you explain how severance pay is calculated?

Severance pay is often based on your length of employment, typically calculated as a week's pay for each year worked.

Are there eligibility requirements for unemployment benefits?

Yes, eligibility varies by state but generally requires you to have lost your job through no fault of your own and to meet work history criteria.

Is severance pay taxable?

Yes, severance pay is considered income and is subject to federal and state taxes.

What should I do if I think my severance package is unfair?

You can negotiate with your employer, seek legal advice, or consult your HR department for clarification on the package.