What to do if I am currently collecting unemployment benefits but I have just received a check for a profit sharing plan distribution?
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What to do if I am currently collecting unemployment benefits but I have just received a check for a profit sharing plan distribution?
Will this affect my unemployment? My company closed.
Asked on May 17, 2012 under Employment Labor Law, Arizona
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
It should not affect your unemployment claim. Unemployment is affected by wages or salary--that is, compensation for current work (or at least being on the payroll). It is not affected by other payments, including payments from former employers of bonuses for work done previously, profit-sharing distributions, amounts released from pension or flexible spending plans, etc. From what you write, since the employer is closed, this clearly is not and could not be characterized as income from work.
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