EDD claim with pending severance package - how to report severance when using a lawyer?

You should absolutely file your claim immediately without waiting for the severance negotiations to conclude. EDD allows you to report income after the fact. When you file your initial claim, there's a question about severance - you can indicate that it's pending but amount unknown. Then once your severance is determined, you'll need to report it during your bi-weekly certifications for the weeks it covers. Remember that severance pay is considered wages and may affect your benefits for those specific weeks, depending on the amount and how it's structured.

happened to me last yr, just FILE NOW don't wait!!! my severence took 3 MONTHS to negotiate and edd woulda denied me if I waited. u can update later

Here's what you need to know about severance and EDD claims: 1. File your claim immediately after separation - don't wait for severance negotiations to complete 2. On your application, indicate that severance is pending/in negotiation 3. When you receive your severance, you must report it during your bi-weekly certification for the period it covers 4. Severance is typically allocated to specific weeks (usually right after termination) 5. For those specific weeks, your UI benefits may be reduced or eliminated depending on the severance amount The key is understanding how EDD treats severance - they allocate it to specific weeks following your termination date. Your benefits will only be affected during those weeks, not your entire claim. So if you get 8 weeks of severance, that might delay your actual benefits for 8 weeks, but doesn't impact your overall claim eligibility or benefit year.

I went through something similar in january. filed for EDD right away but my severance took forever bc of legal stuff too. I couldn't reach anyone at EDD to ask questions and kept getting anxiety about doing it wrong. Finally found this service called Claimyr (claimyr.com) that got me connected to an EDD rep in like 20 mins when i'd been trying for days. They have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km The rep confirmed I should keep certifying normally and just report the severance during the weeks it covered once I knew the amount. Saved me so much stress!

wait hang on im CONFUSED...isnt severence different from unemploymnet? why would u need to report it? i got laidoff last year and got both...nobody told me they were related???? now im worried i did something wrong lol

THE SYSTEM IS DESIGNED TO TRIP YOU UP!!! I bet they're hoping you mess this up so they can deny your claim or hit you with an overpayment later. DOCUMENT EVERYTHING. Screenshot every page of your application. Save emails. Record phone calls (California is a two-party consent state so tell them you're recording). EDD will use ANY EXCUSE to deny benefits or create overpayments. When you do get your severance, make SURE you report it properly. I got hit with a $6,700 overpayment because I didn't understand how to correctly report my severance package.

To clarify about the severance allocation: EDD typically allocates severance to the period immediately following your termination. For example, if you receive 8 weeks of severance, EDD will allocate that as income for the first 8 weeks after your termination date. During those weeks, your UI benefits may be reduced or eliminated depending on the severance amount. For the original poster: When you certify bi-weekly, you'll need to report any income you received for the weeks you're certifying for. Until your severance is determined and paid, you wouldn't report it. Once you receive it, you'll need to report it for the appropriate weeks (which may require contacting EDD if those weeks have already been certified).

My company did mass layoffs in March this year and I had something similar happen with severance negotiations. I just checked the "severance pending" box when I applied and explained in the additional info section. Took almost 5 weeks to get the severance amount finalized, but my UI claim was processed normally. Then I just had to call EDD to report the severance once I got it. My benefits were reduced for the weeks the severance covered, but the claim itself stayed active.

anyone else notice how EDD seems to have different rules depending on who u talk to?? my friend got told something completely diffrent about serverance pay!!

I went through this exact situation last year! Filed my EDD claim immediately after being laid off even though my severance was still being negotiated through my attorney. The key things that helped me: 1. On the initial application, I selected "yes" for expecting severance but put "amount pending legal negotiation" in the comments 2. I continued certifying bi-weekly as normal while negotiations were ongoing 3. When my severance was finalized 6 weeks later, I called EDD right away to report it The severance ended up covering 10 weeks from my termination date, so I had to repay some benefits for those weeks, but it didn't affect my overall claim eligibility. EDD was actually pretty understanding about the situation once I explained it properly. Just make sure you're proactive about reporting it once you know the final amount - don't wait for them to find out on their own through tax records or something. Good luck with your negotiations and your claim!

I'm in a very similar situation right now - just got laid off yesterday and have a lawyer negotiating my severance package too. Reading through all these responses has been incredibly helpful! It sounds like the consensus is to file immediately and just indicate that severance is pending, then report the final amount later during bi-weekly certifications. One thing I'm still wondering about - if my severance negotiations take several months (which my lawyer warned could happen), and I've already been receiving UI benefits during that time, how does EDD handle the repayment logistics? Do they typically offer payment plans for situations like this where the delay wasn't the claimant's fault? I want to budget appropriately just in case I need to pay back several weeks worth of benefits once my severance is finalized. Also, has anyone dealt with a situation where the severance package included non-cash components (like extended health benefits or stock options)? I'm wondering if those count toward the income calculation or if it's just the cash portion that affects UI benefits. Thanks everyone for sharing your experiences - this community has been way more helpful than trying to navigate EDD's website!

I've been through this exact scenario twice - once in 2019 and again in 2022. Both times I filed my EDD claim immediately while severance was being negotiated by attorneys. Here's what worked for me: **During Initial Filing:** - Check "yes" for severance pay expected - In the comments section, write something like "Severance amount pending attorney negotiation - will report final amount upon determination" - Don't let this delay your filing by even one day **While Negotiations Are Ongoing:** - Continue your bi-weekly certifications as normal - Answer "no" to income questions until you actually receive the severance - Keep detailed records of all your filings and responses **Once Severance is Finalized:** - Call EDD immediately to report the amount and timeline - They'll calculate which weeks it covers (usually starting from termination date) - Be prepared to repay benefits for overlapping weeks The second time this happened to me, my severance negotiations took 4 months! But my UI claim processed normally and I received benefits the whole time. When the severance was finally settled, I owed back about $2,800 for 6 weeks. EDD automatically set up a payment plan with no penalties since I reported it promptly. Don't overthink this - file today and deal with the severance reporting when you actually know the details. The system is designed to handle these situations, even if it's not always clear from their website.

I'm dealing with this exact situation right now too! Just got the layoff news this morning and my attorney is already working on severance negotiations. Reading everyone's experiences here has been so much more helpful than anything I could find on the EDD website. Based on all the advice here, I'm planning to file my claim today and clearly indicate that severance is pending legal negotiations. It's reassuring to see so many people have successfully navigated this - especially hearing that EDD was understanding about the situation and didn't penalize anyone for reporting severance amounts after the fact. One thing I'm curious about that I haven't seen addressed - if the severance negotiations fall through completely (which my lawyer said is a small possibility), do I need to contact EDD to update them that no severance will be coming? Or can I just continue with normal certifications and not worry about it unless I actually receive something? Thanks to everyone who shared their experiences, especially those who went through multiple rounds of this. It really helps to know what to expect!

I just want to echo what everyone else has said - FILE TODAY! Don't wait for the severance negotiations to finish. I was in this exact situation about 6 months ago and made the mistake of waiting "just a couple weeks" for my lawyer to get back to me with an update. Those couple weeks turned into 2 months, and I missed out on benefits I could have been receiving the whole time. The process is actually pretty straightforward once you understand it: - File immediately and note that severance is pending - Keep certifying bi-weekly while negotiations happen - Report the severance when you actually get it - Deal with any benefit adjustments at that point I know it feels weird to file without knowing all the details, but that's exactly what the system is designed for. EDD would rather have you in the system collecting benefits you're entitled to than sitting around waiting for perfect information. The severance reporting can always be handled retroactively. One tip that helped me: I kept a simple spreadsheet tracking all my certifications and what I reported each time. When I finally got my severance and had to call EDD, having those dates and details made the conversation much smoother. You've got this - just take that first step and file today!

Just went through this exact situation a few months ago! Filed my EDD claim immediately even though my severance was still being negotiated through my attorney. Here's what I learned: The most important thing is to file NOW - don't wait for negotiations to finish. When I applied, I checked "yes" for expected severance and wrote in the additional info section: "Severance amount pending legal negotiations, will report final amount when determined." My negotiations took 7 weeks, but my UI claim processed normally and I started receiving benefits right away. I just continued my bi-weekly certifications as usual, answering "no" to income questions until I actually received the severance payment. Once my severance was finalized, I called EDD immediately to report it. They calculated that it covered 6 weeks from my termination date, so I had to repay some benefits for those weeks. But they set up an automatic payment plan with no penalties since I reported it promptly. The rep I spoke with said this is actually a very common situation and they're used to handling it. She emphasized that it's much better to be in the system collecting benefits you're entitled to rather than waiting around for negotiations to conclude. Don't overthink it - just file today and deal with the severance reporting when you actually know the details!

I'm in a very similar situation - just got laid off last week and my attorney is handling severance negotiations too. Reading through everyone's experiences here has been incredibly reassuring! The consensus seems crystal clear: file your EDD claim immediately and indicate that severance is pending negotiations. Don't wait around losing out on benefits you're entitled to while lawyers hash out the details. What really stands out to me from all these stories is how understanding EDD actually is about this situation once you explain it properly. Multiple people mentioned that reps told them this is common and the system is designed to handle it. The key seems to be being proactive about reporting the severance amount as soon as you know it, rather than trying to hide it or hoping they won't notice. I'm curious though - has anyone dealt with a situation where the severance package was structured as "salary continuation" rather than a lump sum? My company mentioned they might do it that way to help with taxes, but I'm wondering if EDD treats that differently than a traditional severance payment. I don't want to assume it's the same reporting process if the payment structure is different. Thanks to everyone who shared their experiences - this thread has been way more helpful than hours of trying to navigate EDD's confusing website!

I'm also dealing with this situation right now - got laid off three days ago and my attorney is negotiating severance. After reading through everyone's experiences here, I'm convinced that filing immediately is the right move. What really helped me understand the process was seeing how many people successfully navigated this exact scenario. The pattern is clear: file now, indicate severance is pending, keep certifying normally, then report the actual amount when you know it. One thing I'm planning to do based on the advice here is document everything thoroughly - screenshots of my application showing I noted pending severance, keeping track of all my certifications, and saving any correspondence about the negotiations. It sounds like having this paper trail really helps when you eventually need to call EDD to report the final severance amount. For anyone else in this boat: don't let the uncertainty paralyze you. The system is designed to handle these situations, and from what I'm reading, EDD reps are actually pretty understanding about severance negotiations taking time. The worst thing you can do is wait and miss out on weeks of benefits you're entitled to while lawyers work out the details. Filing my claim today - thanks everyone for sharing your experiences!