Can I Apply for Unemployment in Ohio if I Am Receiving Severance Pay?
The Ohio Bureau of Unemployment Compensation Program Services operates the state's unemployment insurance system. The bureau is part of the Department of Job and Family Services. Eligible claimants can receive between $387 and $524 in weekly benefits for at least 20 weeks and qualify for a maximum of 26 weeks of unemployment benefits, plus federal extensions, current at the date of publication. If you receive severance pay from your previous employer, you may apply for unemployment insurance benefits if your employer terminates you.
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Severance Pay
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If you receive severance pay, your severance payments will reduce your weekly unemployment benefit allowance. However, if your weekly severance pay is equal to, or greater than, your weekly unemployment benefit allowance, the Ohio Bureau of Unemployment Compensation Program Services will reduce your weekly unemployment benefits by your severance payments for the week. Furthermore, if you receive vacation pay, company buy-out compensation, pension payments or workers' compensation, the state can further reduce your weekly benefits by the amount of your respective compensation.
Unemployment Benefit Reductions
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Severance pay is deductible for the weeks that your employer attributes to your weekly unemployment benefits. For example, if you draw benefits for the entire month of March, the bureau will lower your weekly unemployment benefits for each week in March. However, severance pay from your employer for your last week of work is nondeductible. In other words, if your employer pays you severance for your last week of employment, the state will not reduce your unemployment insurance benefits for that week.
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Limitations
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Although Ohio law exempts a limited portion of your work earnings through part-time employment, it will deduct your severance payments dollar-for-dollar. Generally, you can keep weekly earnings of up to 20 percent of your weekly benefits before the state reduces your weekly benefits on a dollar-for-dollar basis. Vacation payouts are deductible, even for payouts during the last week of employment.
Penalties
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You must report all other earnings while receiving unemployment benefits. Failure to report earnings can lead to civil penalties. Furthermore, the state can pursue criminal charges against you for deliberately providing misleading or false information. The Bureau of Unemployment Compensation Program Services can seek a reimbursement of overpaid benefits by withholding your state income taxes, by seeking a federal tax offset, by garnishing your wages or levying your personal and real property.
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