EDD claim with severance pay - When to file after company closure?

You should file for unemployment immediately after your last day of work, regardless of the severance package. When you certify for benefits, you'll need to report any severance payments as income during the weeks you receive them. EDD considers severance as wages, which may reduce or eliminate your UI benefits for those specific weeks, but once the severance stops, your regular UI benefits should continue without interruption. Make sure you indicate on your application that you were laid off due to business closure, as this clearly qualifies as job loss through no fault of your own. Don't wait until your severance runs out to file - the EDD claim process can take time, and you don't want gaps in your income.

file asap when ur laid off!! i waited 2 wks after my severance ended to apply and they counted those weeks against my benefit year even tho i hadnt applied yet!!! dont make same mistake

When I went through a similar situation last year, I found that how your severance is paid makes a big difference. If it's paid in a lump sum, you report it for the week received. If it's paid biweekly like regular paychecks, you report each payment as you receive it. One important thing: keep documentation of EXACTLY how your severance is calculated (weeks per year of service, etc). My company claimed my payment was "in lieu of notice" rather than true severance, which affected how EDD treated it. I had to appeal to get this fixed. Also, when you certify, there's a specific question about severance - make sure to answer "yes" and report the exact amount for that certification period. Being accurate here saves headaches later!

the EDD system is sooooo broken i got laid off in february and they STILL havent processed my claim right. severence just complicates everything good luck getting a real person on the phone lol

I feel for you! When my company downsized in 2024, I went through this exact situation. Here's what happened to me: 1) Filed for UI the day after my last day worked 2) Got 8 weeks severance paid bi-weekly 3) Had to report each severance payment when certifying 4) Received $0 in UI benefits during weeks I reported severance 5) Once severance ended, full UI benefits kicked in automatically The most confusing part was the certification questions don't specifically say "severance" - you have to report it under "other income" and then select "severance pay" from a dropdown menu. I almost messed this up! Also make sure to do your work search activities EVEN DURING SEVERANCE WEEKS! I didn't realize this and almost got disqualified because I wasn't keeping records of job applications during my severance period.

Anyone know if vacation payout gets treated the same as severance? My company is closing too and they're paying out my unused vacation time along with severance

To answer your follow-up question - yes, your benefit year will still start from when you initially file, even if you receive $0 for several weeks due to severance. This is important because your benefit year lasts for 12 months from filing date, and you can claim up to 26 weeks of benefits within that year. One more thing: when reporting severance on your bi-weekly certification, you'll answer YES to the question "Did you receive any other type of income?" Then select "Severance Pay" from the dropdown menu and enter the amount for THAT CERTIFICATION PERIOD ONLY (not the total severance amount). If your severance is paid on the same schedule as your regular paychecks were (every two weeks, for example), it makes the reporting pretty straightforward.

For your question about documentation - yes, I did have to provide proof of how my severance was calculated during my appeal. The EDD interviewer wanted to see the severance agreement showing it was based on years of service rather than being a "in lieu of notice" payment. I recommend keeping digital copies of: 1. Layoff notice/letter 2. Severance agreement or policy 3. Final paystub showing severance 4. Any email communications about the severance calculation Oh, and start gathering your employment information now to speed up the application process: exact start date, employer contact info, and your earnings for the past 18 months. The EDD application asks for a lot of information, and having it ready makes the process much smoother.

I went thru this last yr they told me I wud get severanse but then they DIDNT PAY IT so watch out!!! get it in writing!!! companies lie all the time when closing!!

shuld i wait til my last day 2 file or can i file when i get the layoff notice??? confused

I went through this exact situation when my company closed down last year. Here's what I learned that might help you: The key is to file immediately after your last day of work - don't wait for severance to end. Your benefit year clock starts ticking from when you file, not when you start receiving payments. For the severance reporting, you'll need to be very precise. During bi-weekly certification, you'll report each severance payment as "other income" and select "severance pay" from the dropdown. This will likely zero out your UI benefits for those weeks, but once severance ends, your full benefits automatically kick in. One thing that caught me off guard - make sure you understand if your severance is true severance or "pay in lieu of notice." This affects how EDD processes it. Also, keep doing your job search activities even during weeks you're receiving severance payments - I almost got disqualified for not maintaining job search records during my severance period. Get everything about your severance in writing ASAP. Some companies promise severance but don't follow through when they're closing. Having documentation will also help if EDD needs clarification about your payments. The transition from severance to UI benefits was seamless for me once I reported everything correctly. Your financial planning should account for potentially 8-16 weeks of reduced/zero UI benefits depending on how your severance is structured.

I'm in a similar boat - my company just announced they're closing in 6 weeks and I'm trying to wrap my head around all this too. From what I'm reading here, it sounds like the main takeaway is to file immediately after your last day regardless of severance, but be prepared to report every severance payment which will likely zero out your benefits temporarily. One thing I'm still confused about - if we're getting severance paid out over multiple weeks, do we need to keep certifying every two weeks even though we know we won't get any UI benefits during that time? It seems like the answer is yes based on what everyone's saying, but I want to make sure I don't accidentally mess up my claim by not certifying during the severance period. Also, has anyone dealt with a situation where the company hasn't finalized the severance details yet? They keep saying "we'll let you know" but time is running out and I need to plan my finances. Should I be pushing HR harder for specifics?

I just went through this exact scenario when my retail job ended due to store closure in December. Here's what worked for me: File your UI claim the day after your last work day - don't wait! Your benefit year starts when you file, not when you receive payments. During the weeks you receive severance, you'll report it as "other income" and select "severance pay" from the dropdown during certification. This will likely result in $0 UI benefits for those weeks, but your claim stays active. The tricky part is the certification questions - they don't explicitly say "severance" so look for "Did you receive any other type of income?" and be sure to report only the amount you received during that specific 2-week certification period, not your total severance. Keep certifying every two weeks even when getting $0 benefits! I cannot stress this enough - skipping certifications can permanently mess up your claim. Once your severance payments end, your full UI benefits should automatically resume. Start documenting everything NOW: get your severance agreement in writing, keep records of payment amounts/dates, and clarify with HR whether it's true severance or "pay in lieu of notice" as this affects EDD processing. One last tip: continue your job search activities even during severance weeks. EDD still requires this and I've seen people get disqualified for not maintaining job search records during their severance period. The whole process was smoother than I expected once I understood the system. Good luck!