Analyzing the Timing for Your Unemployment Benefits From AT&T

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A key tidbit a lot of folks are unaware about is that you do not have to file for unemployment benefits immediately after getting laid off.  While many certainly need the money and cushion, others may need the money but have more flexibility in when they can claim it.

All circumstances are different. However, we advise staying aware that all money received as income is taxable, if you leave a job at a point in the year where you have earnings, accept a severance check, and if you claim unemployment benefits, these will all add up and can possibly push you towards a new tax bracket which would force you to pay higher taxes. On the contrary, it can also be optimal to have your severance as a cushion to look for the ideal new job.

UI benefits are calculated based on your wages from your previous employer over the past 15 months.  If waiting too long to claim your benefits, your payments could be lowered if you had, within those 15 months, some months of $10,000 in earnings and other months with $0 in earnings.  As many things, the computations and rules differ by state, so we recommend visiting your state’s website to go over exact details, and if further questions ensue, reach out to an experienced Financial Adviser.

Here are a few items to consider when going over your Unemployment Benefits:

Ask about any references, the vacation time you accrued, sick and overtime pay, and your eligibility for unemployment insurance. It is important to understand how to bridge your company pension if you come back, and the continuation of health coverage.

Another area where timing has an important factor is regarding AT&T’s Modified Rule of 75. If you are surplussed or right sized in that location or hub and are short of the important 75 points (Rule of 75), it is critical to do everything possible to stay at the company until you hit these magical benchmarks. To find out additional information about how you can maximize your benefits through the
Rule of 75, check out this article.

Severance packages also vary enormously dependent on several factors, so, if your settlement does not completely account for what you need, check with your manager. There are several things to consider when taking out your severance and to maximize benefits, analyzing your situation is important. Would it be beneficial to take your severance out as a lump sum or as payments? Or maybe even take your severance over a period of two separate years? All of these questions and options can be analyzed by a Financial Adviser to get the best result possible.

To ultimately maximize your benefits, reach out to a Financial Adviser to go over a plan. Timing is key and with the help of someone that has years of experience with handling AT&T employees and guiding clients through the path that will be most beneficial to your goals.