SR Client Question: Can you collect unemployment pay if you received severance pay?

An individual cannot collect full unemployment benefits if there is severance pay that is allocated, by the employer, to the weeks of unemployment benefits.

If there is no specific allocation of the specific weeks of severance pay by the employer, then the severance pay is deemed to be for the week(s) that the payment was actually made.

For more information on how severance pay affects unemployment benefits in the State of Michigan, click here or schedule an initial consultation with a ShindelRock accounting professional at