A layoff notice from Intuit starts five time-sensitive clocks that most employees do not know about.

Quick Answer

What happened at Intuit?

On May 20, 2026, Intuit announced it is cutting 17% of its full-time workforce, affecting over 3,000 people based on the company's last reported employee count of 18,200. Those impacted by the layoffs were notified of the company's intent to part ways with them Wednesday morning. Impacted employees will have a paid transition period, including July RSU vesting and bonus eligibility, before leaving the company on July 31.

What should you file first?

File for unemployment insurance immediately. Claims are effective on the date they are filed and are not retroactive to the last day worked. This rule applies in most states including California, where many Intuit employees are based.

Unemployment Insurance (UI) Benefits are not retroactive: therefore, you should apply for UI Benefits as soon as possible after the last day of work. Even if you're receiving severance pay, you should still file immediately.

File in the state where you worked, not where you live. Each state has different benefit amounts and duration, so check your specific state's workforce agency website for filing instructions.

What about your health insurance?

You have 60 days to enroll in COBRA, starting from when your coverage ends or when your COBRA election notice is provided to you or mailed,whichever is later. If you are entitled to elect COBRA coverage, you must be given an election period of at least 60 days (starting on the later of the date you are furnished the election notice or the date you would lose coverage) to choose whether or not to elect continuation coverage.

COBRA is expensive. The national average for individual COBRA coverage is approximately $703 per month. You pay the full premium plus up to 2% administrative fees.

Alternative: You must select a Marketplace plan within 60 days of losing your job-based coverage. Job loss qualifies you for a Special Enrollment Period on Healthcare.gov, which runs concurrently with your COBRA window.

Important: COBRA coverage generally doesn't start until you make your first premium payment. Since COBRA coverage is retroactive to the day you lost your job-based plan, your initial payment may include premiums for more than one month.

How long do you have to review your severance?

If you're 40 or older, the Older Workers Benefit Protection Act (OWBPA) gives you specific rights. A waiver must provide the employee with at least 21 days to consider the offer. For a single employee, the employee must be given 21 days to consider the release.

In addition, your employer must give you , and all other employees who are being laid off with you , written notice of your layoff and at least 45 days to consider the waiver before signing it. First, the required consideration period increases from 21 to 45 days.

A waiver must give an employee seven days to revoke his or her signature. After considering and signing the release, an employee has seven days to change his or her mind and revoke his or her agreement to the release. This seven-day period cannot be waived or shortened.

Review carefully before signing. Look for any restrictions on filing with the EEOC, non-compete clauses, or provisions that might affect your unemployment benefits.

Do you have stock options or RSUs?

As a publicly traded company, Intuit likely grants both Incentive Stock Options (ISOs) and Non-Qualified Stock Options (NQSOs) to employees. For ISOs, IRC Section 422 requires that options be exercised within 3 months of termination to retain ISO treatment. Among other conditions, ISOs lose their favorable tax treatment if they are not exercised within three months after job termination.

Most U.S. stock option plans require you to exercise within 90 days of your last day of employment. The vast majority of startups give terminated employees 90 days to exercise their options, regardless of whether an employee chose to leave or was asked to leave.

If your company allows you to exercise your ISOs beyond three months after termination, an exercise after three months causes the ISOs to become NQSOs. This means you'll lose the favorable tax treatment and pay ordinary income tax on the spread at exercise.

For RSUs: RSUs that have already vested are yours to keep; only unvested RSUs are lost. Intuit employees will have July RSU vesting included in their transition period.

What about taxes on your severance?

The withholding rate on supplemental wages remains 22% (37% if supplemental wages paid to an employee during the calendar year exceed $1 million). This is the federal supplemental withholding rate that applies to severance payments.

Your actual tax liability may be higher or lower than 22%. Perhaps your employer withholds the mandatory 22% on your bonus, but you're actually in a higher tax bracket. In that case, you could end up owing additional taxes on your bonus money.

If your severance pushes you into estimated tax payment requirements, the next quarterly payment deadline is June 17, 2026, for Q2 estimated taxes. Consider setting aside additional funds beyond the 22% withholding if you expect to owe more.

What happens to your 401(k)?

You have several options when you leave Intuit:

If you choose an indirect rollover, you have 60 days to complete the transaction to avoid taxes and penalties. Direct rollovers (trustee-to-trustee transfers) don't have this time limit and are generally preferred.

The Decision Calendar

The deadlines above apply whether or not you are tracking them. The Decision Calendar from Layoff HQ is not just a reminder tool. It runs the actual math on your specific situation.

Based on your last day worked, your state, your age, and whether you have equity, it calculates: the COBRA vs. Marketplace cost comparison for your income level, your severance tax exposure and estimated Q2 or Q3 payment due, your equity exercise costs and the tax difference between acting before and after key deadlines, and your financial runway so you know exactly how long your current resources last at different monthly burn rates. Then it tracks every deadline on a single personalized calendar and sends SMS and email reminders before each one closes.

One-time purchase. No subscription. 14-day money-back guarantee.

Build your free Decision Calendar or see pricing for the full personalized version.

Deadlines and rules described here reflect federal law and general state guidelines as of the article date.

For additional resources, see our free checklist of post-layoff actions.

Written by the Layoff HQ research team. Sources verified against DOL, EEOC, IRS, and state workforce agency primary documentation.

  1. Enterprise software giant Intuit is letting 17% of its staff go, or about 3,000 people, as it seeks to divert resources toward baking AI into its products, Reuters reported, citing an internal memo sent to employees.
  2. If you are entitled to elect COBRA coverage, you must be given an election period of at least 60 days (starting on the later of the date you are furnished the election notice or the date you would lose coverage) to choose whether or not to elect continuation coverage.
  3. A waiver must provide the employee with at least 21 days to consider the offer.
  4. The withholding rate on supplemental wages remains 22% (37% if supplemental wages paid to an employee during the calendar year exceed $1 million).
  5. For ISOs, IRC Section 422 requires that options be exercised within 3 months of termination to retain ISO treatment.