Will my lump-sum severance payment affect my ongoing EDD benefits?

u have to report it when u certify, theres a question that asks if u received any $$. the pay will likely delay ur benefits for however many weeks the severance covers.

Yes, you definitely need to report your severance payment when you certify for benefits. However, how EDD treats severance pay depends on several factors. In California, if your severance pay was conditional on signing a release of claims against your employer, it might NOT affect your benefits. But if it's considered regular severance, EDD typically treats it as wages allocated to the period immediately following your separation, which could affect your weekly benefit amount for the period covered by the severance. When you certify, answer YES to the question about receiving other income, select "severance pay" as the type, and enter the gross amount before taxes. EDD will determine how it affects your claim. I'd recommend calling EDD directly to clarify your specific situation - this is definitely a case where speaking to a representative is important.

The previous comment is correct. It's crucial to understand that severance pay treatment by EDD depends on how it's structured. If your severance was given in exchange for signing a release of claims (which is very common in negotiated severance packages), California EDD often does NOT consider this as wages for unemployment purposes. However, if your severance is considered a continuation of wages, then yes, it could affect your benefits for the period it covers. Either way, you MUST report it when certifying. I went through this exact situation in 2025. My severance didn't affect my benefits because it was tied to a release agreement, but your situation might be different. When you certify, be sure to have documentation ready about the nature of your severance payment in case EDD requests it. Also, don't panic if your payments pause temporarily while EDD reviews your case - this is normal when you report severance.

If you're having trouble getting through to an EDD agent about this (and trust me, you should talk to them directly), try using Claimyr. I was in a similar situation with a confusing severance situation and couldn't get through on the regular EDD line for DAYS. Claimyr got me connected to an EDD rep in about 20 minutes. They have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km and their website is claimyr.com The EDD rep I spoke with explained exactly how my severance would affect my benefits and notated my account. Totally worth it to get a clear answer directly from EDD instead of stressing about it.

LISTEN. The EDD system is DESIGNED to confuse people!!! I reported my severance last year and they IMMEDIATELY cut off my benefits and I had to fight for MONTHS to get them back. They claimed I didn't provide documentation fast enough but I never even received the request for docs!!! Don't trust the system to work properly!!! Make copies of EVERYTHING. Your severance agreement, the deposit, tax withholding info, EVERYTHING. When you certify and report it, take screenshots of every screen. If your benefits stop, appeal immediately - don't wait for them to "review" anything because the system is broken. And definitely call them BEFORE you certify with the severance info if possible. Get the name and ID number of whoever you talk to!!

Yes but only after I filed an appeal and waited 7 weeks for a hearing!!! They finally admitted my severance shouldn't have affected my benefits because it was a lump sum with a release agreement. But I lost 3 months of payments before getting it all back. The system is BROKEN.

my neighbor works at walmart and said that severance only counts if its more than ur weekly benefit amount? is that true?

Thanks everyone for the responses! I've decided to call EDD directly tomorrow morning to get an official answer about my specific situation. I'll make sure to document everything about my severance payment and keep copies of all paperwork. I'll also be very careful when certifying to make sure I report everything correctly. I'll update this thread once I have more information in case it helps someone else in the future!

This happened to me last month! I got laid off from Salesforce with a severance package. When I reported it on my certification, my account went to "pending" for about a week. Then EDD sent me a request for more information about the severance through UI Online. I uploaded my severance agreement (which included the release language) and a week later my payments resumed normally. They determined my lump sum with the release of claims didn't affect my benefits! Just be 100% honest on your certification and be ready to provide documentation. Good luck!

I tried calling but couldn't get through. Everything happened through UI Online. Just keep checking your homepage daily for any notifications or tasks they add.

My severance was back in november and i just checked the box for "other income" and put severance pay and the amount. my payments stopped for 2 weeks while they reviewed it then started again normal. no big deal. but my severance was only like 3 weeks of pay so maybe bigger amounts are different idk

UPDATE: I finally got through to EDD after trying for two days! The representative confirmed that because my severance is tied to a release agreement, it will NOT count as wages for unemployment purposes. I need to report it when I certify, but it shouldn't affect my ongoing benefits. She noted this in my account to help avoid any automatic flags or holds. She also warned me that my certification might still temporarily go to "pending" when I report the severance, but that's just their system automatically reviewing it. As long as I honestly report everything, my benefits should continue normally. Thanks again for all the help everyone!