Sunday, November 14, 2010

Can they take out for medical/dental/disability insurance on a severance check?

I was recently laid off. I received my last paycheck almost immediately, but had to wait awhile to get my two weeks severance check. Are they allowed to take out medical, dental, life insurance, disability on my SEVERANCE check? I understood all that on my last paycheck, but it doesn't make sense to me on the severance check. Please let me know if this is legit. I really need to deposit this check to pay rent, but I don't want to if they are doing something wrong.
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Yes, they can. Severance is often considered time worked, so you are technically still covered during the severance period and normally will still be expected to pay your share. It only becomes an issue if you have a denied claim during that period (rare).
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