Can I receive unemployment benefits if I am receiving severance pay?

In Montana, receiving severance pay can affect eligibility for unemployment benefits. Generally, if an individual is receiving severance pay, they may not qualify for unemployment benefits immediately. This is because severance pay is often considered a form of compensation that replaces a portion of lost wages, which can impact the determination of financial need. Montana Unemployment Insurance typically looks at the individual’s earnings during their base period, and any severance pay received may be counted as earnings during the weeks it is paid. As a result, if the severance pay exceeds the individual's weekly benefit amount or if the pay period overlaps with the unemployment claim, it may delay or reduce the benefits an individual can receive. It is important for individuals in this situation to thoroughly review their specific circumstances and how severance pay is calculated in relation to their unemployment claim. For precise guidance regarding one's own situation, individuals may want to check the Montana Unemployment Insurance website for updated information and resources available to navigate various scenarios related to unemployment benefits.