Can severance be paid as a "bonus?"

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imagine628

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I am in the midst of negotiating my departure/severance from a firm at which I have been employed for 16+ years. My question is this: Can severance pay be termed/structured/paid as a "bonus" for work performed in 2010?
 
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Could you explain your reason for saying it shouldn't be? I am asking because I have been approved for long-term disability, but if my firm pays a "severance" that is more than 60% of my salary, it negates the LTD payments entirely. If it is structured as a "bonus" for work performed prior to my disability (10/10), I am still entitled to the full benefits of LTD. My understanding is that the firm can call it anything they want (it's a privately-held firm).

Thanks...
 
Well that is pretty much it- they can call it what they want, but regardless of what they call it, it is still severance.

You could potentially find yourself in some deep doo-doo later if it was found out that you did not disclose the severance. It is possible that you could be committing fraud by not being straight with the state in order to get a higher payout.

You should probably consult with a local attorney in your state to make sure you don't get yourself in a jam.
 
My thoughts exactly (the deep doo-doo part), but when I spoke to the insurance company with whom my firm insures my position, they stressed that any funds received as a bonus prior to my disability would not offset the benefits paid by them. Still, I think I will go the attorney route to be sure I am on the straight and narrow (and the moral high road).

Thanks again.
 
Well... you didn't receive the bonus prior to your disability... you might be playing with fire.
It could take time for them to figure out, but you could end up having to repay anything you received, and have to work your way around the fraud- you will be signing documents stating that everything you provided was true and correct...
 
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