Does Severance Pay Affect Unemployment in North Carolina?

Unemployment benefits are available to North Carolina workers who meet the state's requirements. The weekly pay helps ease the transition from one job to another. Since your available income and assets are considered when you apply for benefits, severance pay affects your unemployment application. Decide whether it's the right time to apply so your application won't be denied.


Severance Pay

Severance pay is sometimes given by your employer when you are laid off or fired. The amount of severance pay you get is determined by your salary and the time you worked at your job. Some separation packages only include severance pay, but others include sick pay and vacation pay.


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Effect on Unemployment

A severance package including severance pay and other benefits makes you ineligible for unemployment benefits in North Carolina until the package benefits are used up. You are considered employed while receiving severance pay. If you received your pay in a lump sum, the Employment Security Commission will use your previous pay rate to determine how many weeks the severance pay should last you. After those weeks have passed, you can file for benefits.


North Carolina Unemployment

Unemployment in North Carolina is operated through the Employment Security Commission. The amount of unemployment benefits to which you're entitled varies depending upon your salary. Once you apply, you must verify each week that you're looking for work in your field. The longer your unemployment, the more you're expected to branch out and find different work that is less applicable to your education and experience.


Unemployment Application

You can apply for benefits online or in an Employment Security Commission location near you. Have your employer contact information, pay stubs and Social Security information available when you apply. Your employer will be contacted so the state can verify the reason for your job loss. Unemployment is not available in most cases if you chose to leave your job. You must have worked a specific length of time in the past 12 months and made a certain amount of wages to qualify for benefits.