How is a severance package paid out?
There are three primary ways that a severance package can be paid out. First, is a lump sum payment where you receive the entire payment all at once. This would be a good option if you’re in need of immediate cash. The second payment option would be salary continuation. Typically salary continuation means that after you separate, you will remain on the payroll. You will continue to be paid each pay period until the agreed upon amount is reached or set period of time has lapsed. The third method of payment is a periodic payment. With this method, equal payments are paid out over time. With periodic payments, you are no longer on the payroll books so tracking missed payments may be more difficult. What are some of the benefits of salary continuation? While a lump sum payment is a better option if you’re financially strapped, salary continuation does have some benefits depending upon the company. In most cases, receiving salary continuation means that you can still use your health insuran
