EDD claim after layoff with pending appeal hearing - will severance affect my benefit amount?
Just found out I'm getting laid off next week (ugh, it's happening again). My last day is May 3rd, and I'll be getting a severance package around mid-May of about $6,500 before taxes. I've got some questions about timing my UI application...\n\nFirst, I know I need to report the severance when I certify, but I'm confused about how it affects my benefits:\n\n- If I apply right after my last day (like May 5th), and then get the severance two weeks later, will that just make me ineligible for payment during the week I receive it, or does it actually reduce my total claim balance?\n\n- Should I wait until after receiving the severance to even apply for UI? Or apply immediately?\n\nComplicating things further: I have an appeal hearing scheduled for May 19th for a previous EDD issue. Back in 2023, EDD somehow thought I was working while collecting benefits (I absolutely wasn't), and they're trying to disqualify me from benefits for 3 years plus pay back some money. I've sent all my documentation and have a hearing in 2 weeks.\n\nMy question is: Should I wait to file my new claim until after this appeal hearing? Or should I just file immediately after my last day regardless of the pending appeal? I don't want to mess anything up, but I also don't want to delay benefits if I don't have to.\n\nAnyone deal with filing a new claim while having an appeal pending? Or know how severance impacts the total benefit amount?
15 comments
Amara Oluwaseyi
File ASAP after your last day (May 5th). The week you receive severance, you'll just report those earnings when you certify. It won't reduce your overall claim balance - it just means you won't get paid for that certification week. Your claim balance (the total 26 weeks of benefits) stays intact.\n\nRegarding your appeal situation - don't wait. File your new claim right away. The two issues are separate in EDD's system. Your new claim might get flagged for additional review because of the pending appeal, but it's better to have it in their system processing while you wait for your appeal hearing.\n\nIf your appeal is successful (which it sounds like it should be if you have documentation), they'll process your new claim normally. If for some reason your appeal isn't successful, you can always appeal that decision too while your new claim is being processed.
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Liam McConnell
Thank you so much for this clear explanation! That's a huge relief about the severance - I was worried it would actually subtract from my total benefit amount rather than just affect that week.\n\nI'll go ahead and file right after my last day then. Do you think I should mention the pending appeal somewhere on my new application? Or will their system automatically flag it?
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CosmicCaptain
Be careful about the severence! When I got laid off in 2023 I got a severence package too but didn't report it proprely and EDD came after me for fraud later on. Make sure you report the GROSS amount before taxes of your severence when you certify for the week you actually receive the money (not when they promise it).\n\nAlso the people at EDD never showed up for my appeal hearing either but then they ruled against me later anyway!!! Its so frustrating. I hope they actually call you for yours.
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Liam McConnell
Oh no, that's awful they ruled against you without even showing up! I'm definitely making sure to report the gross amount - that's one thing I learned from my last time on unemployment. \n\nDid you get any kind of explanation why they didn't call in for your hearing? I'm worried the same thing will happen to me and then I'll be stuck in limbo for months.
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Giovanni Rossi
I had a similar situation with severance last year. You absolutely file right after your last day. The severance only affects the week when you actually receive it. So if your weekly benefit amount would be $450, and your severance that week is more than $450, you just won't get paid for that ONE week. It doesn't reduce your total claim balance.\n\nAlso, I found this on the EDD website to help with the severance reporting: \
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Fatima Al-Maktoum
Totaly agree about filing right after your last day! The EDD looks at your last day worked not when you get your final paycheck or serverance. They'll ask when your last day was during the application process.\n\nOh and make sure you save some of that severence for taxes! EDD doesn't withhold enough and I got hit with a big tax bill this year lol
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Dylan Mitchell
I'm going to give you a completely different perspective than what others have said. I would actually recommend waiting until after your appeal hearing to file your new claim. Here's why:\n\n1. If your appeal is successful (which it should be if you have proper documentation), it completely removes the fraud allegation and disqualification period from your record. Filing a new claim AFTER a successful appeal means your new claim won't get flagged for additional review.\n\n2. Filing before the appeal hearing could potentially complicate both processes. In my experience working with many claimants, EDD representatives sometimes get confused when there are overlapping issues.\n\n3. Since your hearing is only two weeks away (May 19th), the potential delay in benefits is minimal compared to the headache of dealing with a potentially flagged new claim.\n\n4. If your appeal is successful, you'll likely get a determination within 1-2 weeks after the hearing. Then you can file with a clean record.\n\nYou have a one-year window to backdate your claim, so waiting a few weeks won't hurt your overall eligibility. However, this is just my recommendation based on dealing with many EDD appeals - others may have different experiences.
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Liam McConnell
Thank you for this alternative perspective! I hadn't considered that filing after a successful appeal might make the whole process smoother. It's only a couple weeks difference, and avoiding additional complications might be worth the slight delay.\n\nDo you know roughly how long after an appeal hearing they typically issue a decision? If they rule in my favor at the hearing, would they tell me immediately that I can file a new claim, or would I need to wait for official documentation?
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Sofia Gutierrez
i disagree with this completely!!!! ALWAYS FILE ASAP because they use your filing date to determine your base period and benefit amount!!! if u wait two weeks you could lose money!!! also the appeal and new claim are totally seperate in their system and one doesnt affect the other. my bro had the exact same situation last yr and he filed right away and got his $$ even while his appeal was still going on.
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Dmitry Petrov
I just went through almost the EXACT same situation, and here's what happened to me:\n\n- Got laid off in January\n- Had a severance package (about $9,000)\n- Also had a pending appeal for an overpayment from 2022\n\nI filed right after my last day of work. When I certified for the week I received my severance, I reported it as wages, and yes, I didn't get benefits for that week, but it didn't affect my total claim amount AT ALL. My total benefit amount stayed exactly the same.\n\nAbout the appeal - mine was pending when I filed my new claim, and yes, my new claim was put on hold briefly while they reviewed it, but after about 3 weeks they released my benefits while still processing my appeal separately. My appeal was eventually approved, but I was already receiving benefits on my new claim by then.\n\nOne tip: When you certify for the week you get severance, make sure to answer \
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Liam McConnell
This is SO helpful, thank you for sharing your experience! It's reassuring to hear from someone who went through almost the same situation. Did you have to do anything special when you filed your new claim to explain the pending appeal? Or did their system just automatically detect it?
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Dmitry Petrov
Their system detected it automatically. There was a section in the application asking if I'd filed for unemployment before, and I answered honestly. That triggered some additional questions about my previous claim, and I just explained briefly that there was a pending appeal for an incorrect overpayment determination.\n\nAbout 10 days after I filed, I got a call from an EDD specialist who asked me a few questions about both situations, and I just explained everything truthfully. That's when they told me they were going to process my new claim separately from the appeal. The key was having all my documentation ready - I had my termination letter, severance agreement, and all my appeal paperwork organized and ready to go when they called.
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StarSurfer
Former EDD worker here. Couple points to clarify:\n\n1. Severance: Report it for the week you receive it, not when you're laid off. If it exceeds your weekly benefit amount, you won't get paid for that week, but your TOTAL claim balance remains untouched. Think of it as \
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Liam McConnell
Thank you so much for this insider perspective! This makes me feel much better about filing right away. One quick follow-up question - when I report the severance on my certification, do I report it as \
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StarSurfer
You report it as wages for the week you receive it. There isn't a separate category specifically for severance. When completing your certification, in the section asking about income, include the gross (pre-tax) amount of your severance as wages for that specific week.\n\nAlso, make sure to keep documentation of exactly when the severance was paid to you (like a bank statement or pay stub) in case there are questions later. EDD sometimes audits these reports, especially for larger amounts.
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