How to Claim Unemployment Benefits With Severance in New Jersey
Severance pay--money your employer gives you to help you cope with the loss of a job--can prevent or delay your New Jersey unemployment benefits. The reason is that any income you receive while collecting benefits counts against your unemployment payments. You must report your severance pay to the Department of Labor and Workforce Development (LWD) when you initially apply for benefits and then during each weekly claims certification. Based on that information, the state distributes your payments in accordance with state law.
Other People Are Reading
Instructions
-
-
1
File your claim for unemployment benefits immediately after your job separation. (See Resources) Answer yes to the application question asking whether you received a severance check when you were let go. Finish the application questions and submit your claim for consideration.
-
2
Read your notice of determination from the LWD to understand how much your claim will pay and when to file your weekly claims certification.
-
-
3
File your weekly claims certification on your designated day. Answer the question about whether you received severance pay for that week. Enter the gross amount of severance pay you received for that week. Finish the rest of the questions and submit your claim.
-
1
Tips & Warnings
A good way to tell the difference between regular pay and severance pay is whether you have worked the hours the pay represents. If you haven't, it's severance pay. Remember you can receive severance pay in a lump sum or in smaller increments. Always report severance pay for the week your employer intended it to cover.
Failure to disclose your severance pay can result in your claim being canceled, the state forcing you to pay back the overpayments and even criminal prosecution in extreme circumstances.
