How does a severance package affect unemployment benefits in Kentucky?
The Kentucky Office of Unemployment Insurance will not reduce unemployment benefits for those weeks in which an employer makes a severance payment to a worker. When an employment contract allows an employee to waive UI benefits in lieu of a severance package, a court can deem the waiver unenforceable.
Do you pay taxes on severance pay in Kentucky?
Taxes on Severance Pay Kentucky taxes money a worker receives as severance pay. Although severance pay does not count as wages when an individual is reporting income for Kentucky unemployment insurance, it counts as net income under Kentucky’s statutes relating to revenue and taxation.
When does an employee get a severance package?
A severance package includes the pay and benefits that an employee receives when his or her employment contract has ended unexpectedly, generally due to a layoff or job elimination.
What are the laws on severance pay in your state?
While severance pay laws tend to vary, your state may have laws defining what severance pay is and protecting severance pay agreements as legal documents. Check with your state’s unemployment department to determine if there are any severance pay laws where you work. Please note: The information in this article is provided as a courtesy.
The Kentucky Office of Unemployment Insurance will not reduce unemployment benefits for those weeks in which an employer makes a severance payment to a worker. When an employment contract allows an employee to waive UI benefits in lieu of a severance package, a court can deem the waiver unenforceable.
Taxes on Severance Pay Kentucky taxes money a worker receives as severance pay. Although severance pay does not count as wages when an individual is reporting income for Kentucky unemployment insurance, it counts as net income under Kentucky’s statutes relating to revenue and taxation.
A severance package includes the pay and benefits that an employee receives when his or her employment contract has ended unexpectedly, generally due to a layoff or job elimination.
While severance pay laws tend to vary, your state may have laws defining what severance pay is and protecting severance pay agreements as legal documents. Check with your state’s unemployment department to determine if there are any severance pay laws where you work. Please note: The information in this article is provided as a courtesy.