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Can I use severance pay to qualify for NY unemployment after it runs out?

Got laid off in February from my tech job. They gave me a 3-month severance package which ends next week. I haven't filed for unemployment yet because I was getting this severance. My question is: does this severance pay count as "earnings" that can help me qualify for a new unemployment claim? I've heard different things from different people. Some say severance is just considered separation pay and doesn't count toward establishing a new claim, others say it does count like regular wages. I need to know if I can use these months of severance to qualify for ny unemployment benefits after it runs out or if I need to use my actual work history before getting laid off. The severance was about $11,450 total over the 3 months if that matters.

Severance does NOT count as wages for establishing a claim. You need actual work history from before getting laid off. You have to report the severance when you file, and they might delay your benefits until your severance period ends, but the severance itself doesn't help you qualify. You need to have earned actual wages in your base period (usually the first 4 of the last 5 completed calendar quarters before filing).

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Thanks for the info. Do you know if I should have been filing claims during my severance period even tho I wouldnt get paid yet, or should I just file once my severance ends?

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You should file as soon as you're unemployed, even with severance. The system will sort it out. If you wait, you could lose weeks of eligibility.

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This is the correct answer. Severance is considered separation pay, not wages for qualifying purposes. Source: happened to me last year.

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I was in the same boat last year. After struggling to get answers from ny unemployment for WEEKS, I finally used this service called Claimyr (claimyr.com) and got a callback with an actual agent. Best money I've ever spent to get my benefits questions answered! They explained exactly how my severance affected my claim and when I should start getting payments. Saved me soooo much stress. Here's a video about how it works: https://youtu.be/Rdqa1gKtxuE

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Another day, another person shilling some random service 🙄 Has anyone ACTUALLY used this thing without getting scammed?

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Not a scam at all. They literally just call the unemployment line for you and wait on hold, then call YOU when they get a rep. I was skeptical too but I'd been trying to get through for 3 weeks straight with no luck.

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I used it too last month. Got a callback in about 40 mins when I'd been trying for days. Def worth it considering I was about to lose my apartment if I couldn't get my claim fixed.

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wait does this actually work? the ny unemployment phone system makes me want to throw my phone thru a window

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Worked for me! Just FYI they don't answer your questions themselves - they just get you connected to an actual DOL rep so you don't have to do the hold-time hell.

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Severance is a gray area but technically it's NOT wages for establishing a claim. It's considered separation pay that might delay when you can start collecting benefits, but doesn't count toward the wage requirements to qualify. You need to have enough earnings in your base period from actual employment.

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The ny unemployment handbook says severance is NOT considered wages for establishing monetary eligibility. It might delay payment of benefits, but you'll need work history from before being laid off to qualify. Check out the NYSDOL website for more details.

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The handbook is so confusing tho 😵‍💫 I read it three times and still dont understand half of it

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No arguments there lol. It's written by bureaucrats for bureaucrats.

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Hey frend I just went thru this exact thing! File your claim NOW don't wait for severance to run out. When you file, report your severance amount. They'll calculate your benefit amount based on your work history before getting laid off, but they probably won't pay you until after your severance period ends. But at least you'll be in the system and ready to go when that time comes.

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Did you have any issues with the system understand that severance was ending on a specific date? Or did they just ask when your last day was?

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They asked about severence specifically. Just be honest about amounts and dates. The weekly certifications also ask if you received any payments.

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I work in HR and deal with this all the time. Severance pay is NOT considered wages for establishing a new unemployment claim. You need actual work history with reportable wages. This is standard across most states including New York. The severance might delay when your benefits start, but it doesn't help qualify you.

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One important thing no ones mentioned: file your claim IMMEDIATELY even if youre getting severance! You might not get benefits right away, but your claim will be based on the date you file. If you wait until severance runs out, you might miss out on weeks of benefits you could have gotten. The ny unemployment system will sort out how your severance affects payment timing.

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This is actually super important OP!! Don't wait to file!!!

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Thanks for the tip. Going to file today.

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I literally JUST went through this same exact situation with NY unemployment! If your severance is paid in a lump sum, it doesn't affect your eligibility. If it's paid biweekly like a regular paycheck (like mine was), they consider those weeks as if you're still employed, and your benefits will be delayed until after the severance period ends. But the severance itself doesn't count toward wage requirements - that's based on your actual employment before layoff.

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Mine is being paid biweekly, so sounds like I'm in the same situation as you. Did you file right away or wait until severance ended?

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Filed right away! Then when severance ended, benefits started automatically. Don't wait!

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Lots of misinformation here. Let me clear things up as someone who worked through this issue recently: First, severance is NOT considered wages for qualifying for a claim. You need actual work history before your separation. Second, you should file your claim IMMEDIATELY, don't wait for severance to end. When you certify weekly, you'll report any severance you received that week. Third, if you're having trouble reaching someone to get specific answers about your situation, I used claimyr.com and got connected to an agent who cleared everything up. Had tried calling for weeks with no luck, but got through same day with them. Totally worth it. Fourth, make sure you understand your base period (usually first 4 of last 5 completed quarters before filing). That's what determines if you qualify and for how much. Good luck - the system is frustrating but once you get it sorted, it works reasonably well.

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This is the most accurate answer here 💯

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Did claimyr actually work? Their website looks sketchy af

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Yeah it worked same day. They don't answer unemployment questions themselves - they just get you past the phone system to an actual agent who can help. Well worth it when I was at my wits end.

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This whole system is so stupid. Why make it so complicated??? Why can't they just tell us clearly what counts and what doesn't? I've been on hold with them 6 times and get disconnected everytime. I hate NY unemployment with a passion.

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PREACH 🙌

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Try claimyr.com - it's the only way I was able to actually talk to someone

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Technically severance isn't wages for qualifying but file anyway. Worst case they deny you and you appeal.

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File your claim now but dont expect payments till severance ends. Thats what I had to do

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I feel like this question gets asked every week lol. Severance is NOT wages for establishing a claim. However, it can affect when you start receiving benefits. You should file immediately even if getting severance.

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Alright so heres what I learned from my experience: Severance does NOT count as earnings for base period calculations. It's considered separation pay. Don't wait to file your claim - do it ASAP even while receiving severance. The unemployment office will determine your eligibility based on your actual work history before being laid off. If eligible, they might delay your payments until after severance ends. But if you wait to file, you could miss out on benefits.

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Had the SAME question few months ago and it took forever to get a straight answer from ny unemployment. Different reps told me different things! Eventually found out that severance is NOT considered wages for establishing a claim but it CAN delay when you start receiving benefits. So file ASAP but don't expect payments until after severance period ends.

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The inconsistency between reps is what kills me. How are we supposed to know what's right when they don't even know?!

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For real!!! The system is broken af. 🤦‍♀️

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