What are the differences between severance pay and unemployment benefits?
Severance pay is compensation provided by an employer when an employee is laid off, while unemployment benefits are government payments to individuals who are unemployed and actively seeking work.
Do I have to apply for unemployment benefits if I receive severance pay?
Yes, you typically need to apply for unemployment benefits even if you receive severance pay, as they are separate forms of compensation.
How long can I receive unemployment benefits after getting severance?
The duration of unemployment benefits varies by state, but receiving severance pay may affect the timing of when you can start receiving those benefits.
Is severance pay taxable?
Yes, severance pay is considered taxable income and will be subject to federal and state taxes.
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