Severance package in 2025 and EDD benefits - when to apply with company closure?

You should apply for unemployment immediately after your last day of work (March 13). Don't wait until your severance runs out! Severance pay doesn't automatically disqualify you from benefits, but it can affect how much you receive during those weeks. The EDD treats severance differently depending on how it's paid out. If you're getting a lump sum payment, you need to report it for the week you receive it. If it's being paid out over time like yours (8 weeks), you'll need to report those payments for each week you certify while receiving severance. When you certify, you'll report the severance as "other income" and EDD will reduce your weekly benefit amount accordingly. Once your severance ends, you'll get your full benefit amount if you're still unemployed.

same thing happened at my job last year got 6wks severance... just telling u DO NOT WAIT to file! took them like 3 weeks to even process my claim then another 2 weeks b4 i got any $$. file the DAY after ur last day!!!

Here's what you need to know about severance and unemployment in California: 1. Apply immediately after your last day worked. The claim is effective the Sunday of the week you apply, so any delay means lost benefits. 2. When certifying, report your severance payments as "other income" for each week you receive them. 3. EDD uses a formula: if your severance for a week exceeds your weekly benefit amount, you'll get $0 for that week, but you'll still be certifying and keeping your claim active. 4. Your benefit year is still 12 months regardless of severance. 5. For part-time work, you can still qualify for partial benefits if you earn less than your weekly benefit amount (though they'll deduct a portion of your earnings). The big advantage of filing right away: once your severance ends, you're already in the system and getting full benefits without delay.

To answer your question - those $0 weeks DO count against your benefit year (which is 12 months from filing), but they DON'T count against your maximum benefit amount. You'll still be eligible for your full benefit allocation once your severance ends. And regarding your part-time work question: if you find part-time work, you must report those earnings when certifying. You can earn up to $149 with no reduction in benefits. After that, EDD subtracts 75% of your earnings from your weekly benefit amount.

The EDD system is a complete disaster and you're probably going to have trouble reaching anyone by phone when you have questions. The first time I tried filing after getting laid off, I spent THREE DAYS trying to get through to an actual person. Kept getting disconnected or that stupid "we're experiencing high call volume" message. Finally I found out about this service called Claimyr (claimyr.com) that helps you skip the phone queue. They have this system that calls EDD for you and then connects you once they get through. Check out their demo: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km Was a lifesaver for me because I had questions about my severance too that weren't answered on the website. Just giving you a heads up because you WILL have questions during this process that only a live person can answer.

DONT LISTEN TO PPL SAYING REPORT SEVERANCE AS "OTHER INCOME"!!!! My HR specifically told us our severance was NOT reportable to EDD because it was considered a "loss of employment payment" not wages!!! Different companies structure severance differently and it MATTERS. Some are WAGES and some are DAMAGES. Ask your HR specifically how your severance is classified!!!!

this happened to me last year and the EDD website was really confusing when i tried to file. make sure you have your last paystub and all the layoff paperwork ready when you apply. and yeah file right after your last day worked. they ask for the exact date your employment ended.

i dont remember them asking about severance during the initial application but when you certify every 2 weeks they ask if you received other income. thats where you report it. make sure to save all ur severance paperwork in case they audit you later. my friend got hit with an overpayment notice 6 months later because she messed up reporting her severance.

anybody else notice edd always process claims faster when its a company closing and lots of people filing at once? when i got laid off before covid it took 6 weeks to get approved but when our whole office closed last year i got benifts in like 10 days

Thanks everyone for all this helpful information! I'm going to talk to HR tomorrow to get more specific details about how our severance is classified and get the documentation ready. I'll definitely file right after my last day in March rather than waiting. Good to know about the potential delays - I'll make sure I have some savings to cover the gap. I appreciate all the insights!