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!

That's awesome that you got confirmation directly from EDD! Really smart to get them to note it in your account beforehand. This whole thread has been super helpful - I'm saving it because I know severance confusion comes up a lot in this community. The key takeaway seems to be that severance with a release agreement is treated differently than regular severance, and calling EDD (even though it's a pain) is definitely worth it for peace of mind on these bigger financial questions.

This is such a helpful thread! I'm currently going through a similar situation - got laid off from my marketing job in February and just found out I'll be getting a severance package next month. I was panicking about how it would affect my EDD benefits, but reading through all these experiences has been really reassuring. The distinction between severance with a release agreement vs regular severance is something I had no clue about. @Madison King thanks for updating us with the official EDD response - that's exactly the kind of real-world confirmation we need in this community. I'm definitely going to try calling them directly about my situation too, even though the phone system is brutal. Better to get it sorted out upfront than deal with benefit interruptions later!

This whole thread has been incredibly informative! I'm bookmarking this for future reference since severance questions seem to come up frequently here. What really stands out to me is how different the EDD treatment is based on whether there's a release agreement involved - that's such a crucial detail that most people (including me) probably wouldn't think to mention when asking about severance. @Madison King your experience of getting the EDD rep to note it in your account beforehand was brilliant. That proactive step probably saved you from dealing with automatic system flags that could have delayed your benefits unnecessarily. For anyone else reading this thread later: the key lessons seem to be 1) always report severance when certifying, 2) the structure of your severance (especially release agreements) matters a lot for how EDD treats it, 3) calling EDD directly is worth the hassle for these complex situations, and 4) document everything and get confirmation in writing/noted in your account when possible. Thanks everyone for sharing your real experiences - this is way more helpful than trying to decipher the official EDD guidelines alone!

This thread is incredibly valuable! As someone who just started receiving EDD benefits after being laid off from my finance job, I had no idea that severance payments could be treated so differently based on their structure. The distinction between severance tied to a release agreement versus regular severance pay is something I never would have thought to ask about. @Madison King thank you so much for taking the time to call EDD and share the official response with us. That kind of real-world confirmation is exactly what this community needs. It's also really smart that you had them note it in your account proactively. I'm curious - for those who had severance with release agreements that didn't affect benefits, did EDD ask for any specific documentation beyond just the severance agreement itself? I'm potentially facing a similar situation and want to make sure I have everything ready if needed. The phone system horror stories are real though - I've been trying to get through for weeks about an unrelated issue with no luck. Might have to try that Claimyr service that @Jade Santiago mentioned.

This has been such an educational thread! I'm currently on EDD benefits and had been wondering about this exact scenario since my former employer mentioned they might be issuing severance payments to laid-off employees later this year. The key insight about release agreements making such a difference in how EDD treats severance pay is something I never would have known otherwise. It's also reassuring to see that even when the system flags your account for review (like @Olivia Evans experienced), it can still work out correctly in the end if you're honest and provide the right documentation. @Madison King really appreciate you following through with the update after talking to EDD directly. That kind of follow-up is so helpful for the community. It sounds like the main takeaways are: always report it when certifying, have your severance agreement ready in case they request it, and don't panic if your account goes to pending status temporarily while they review. The fact that multiple people here had positive outcomes with severance tied to release agreements gives me hope that the system does work when you follow the proper steps, even if it's not always smooth sailing initially.

This thread has been incredibly helpful! I'm currently navigating a similar situation - got laid off from my software engineering role last month and just learned I'll be receiving a severance package with a release agreement in the next couple weeks. Reading through everyone's experiences here, especially @Madison King's successful resolution and @Olivia Evans's smooth process through UI Online, has really eased my anxiety about how this might affect my EDD benefits. The distinction between severance with release agreements versus regular severance pay is something I had absolutely no knowledge about before finding this discussion. It's also reassuring to see that even when people like @Daniel Price had initially difficult experiences, the system eventually worked correctly once the proper documentation was provided. That reinforces the importance of being proactive about reporting everything honestly and keeping detailed records. I'm definitely planning to call EDD directly before I receive my severance payment, armed with all the insights from this thread. Having them note the situation in my account ahead of time (like Madison did) seems like such a smart preventative step. Thanks everyone for sharing your real experiences - this community knowledge is invaluable!

This thread has been absolutely invaluable! As someone who's been on EDD benefits for a few months now, I had no idea that severance payments could be handled so differently depending on whether there's a release agreement involved. What really strikes me is how @Madison King's proactive approach of calling EDD ahead of time and getting the situation documented in their account probably saved so much hassle down the road. That's brilliant advice that I'm definitely keeping in mind. The contrast between @Daniel Price's initial nightmare experience and the smoother outcomes that others had really highlights how important it is to have all your documentation ready and to be completely transparent when reporting. It sounds like the system does work correctly when you follow the proper steps, even if there can be some scary moments with pending statuses and review periods. For anyone else reading this in the future: this thread is basically a masterclass in handling severance payments while on unemployment. The key takeaways about release agreements, proper reporting, and getting official EDD confirmation are pure gold. Thanks to everyone who shared their real experiences!

This entire thread should honestly be required reading for anyone on EDD benefits! I've been collecting unemployment for about 6 weeks now after getting laid off from my HR position, and I had absolutely zero knowledge about how severance payments are treated differently based on release agreements. What's really impressive is how @Madison King handled this whole situation - from asking the initial question, to calling EDD directly, getting official confirmation, and then coming back to update everyone with the resolution. That's exactly the kind of community engagement that makes this space so valuable. The range of experiences shared here is also really educational. From @Daniel Price's challenging situation that eventually resolved correctly, to @Olivia Evans's smooth process through UI Online, to @Caleb Stone's quick 2-week review - it shows that while the system can be confusing and sometimes slow, it generally works when you're honest and provide proper documentation. I'm saving this thread as my go-to reference in case I ever face a severance situation. The key lessons are crystal clear: always report honestly when certifying, understand that release agreements matter significantly, call EDD for complex situations, and keep detailed documentation of everything. Thanks to everyone who shared their real experiences - this is community knowledge at its finest!

This has been such an incredibly thorough and helpful discussion! As someone who's been on EDD benefits for about 2 months after a layoff from my consulting job, I genuinely had no idea that severance payments could be treated so differently based on their structure. The whole release agreement distinction that everyone's discussed is completely new information to me. What I find most impressive about this thread is how it evolved from @Madison King's initial worried question into this comprehensive guide that covers pretty much every angle of dealing with severance while on unemployment. The fact that Madison took the time to actually call EDD, get official confirmation, and then come back to share those results with everyone is exactly the kind of community spirit that makes this space so valuable. The range of experiences shared here - from smooth sailing to temporary hiccups to more complex situations - really shows that while the EDD system has its quirks, it generally does work correctly when you're transparent and follow the proper steps. I'm definitely saving this thread as my reference guide in case I ever face a severance situation myself. Thanks to everyone who contributed their real-world experiences. This is community knowledge at its absolute best!

This thread has been absolutely phenomenal! I've been silently following along as someone who just got laid off from my tech startup last week and is still figuring out the whole EDD process. The severance + unemployment interaction was something I was dreading having to research, but you all basically created the definitive guide right here. @Madison King your approach of calling EDD proactively and getting everything documented ahead of time is genius - I'm definitely stealing that strategy if my severance comes through. The release agreement distinction is something I never would have known to look for, and it seems like that's the crucial factor that determines everything. What really impressed me is how this evolved from one person's specific question into this comprehensive resource that covers every angle - from the horror stories to the success stories to the practical step-by-step advice. I've already bookmarked this thread and I'm sure I'll be referencing it if/when my situation gets more complicated. Thanks to everyone who shared their real experiences. This is exactly the kind of community knowledge that makes navigating these systems way less terrifying for newcomers like me!

This thread has been incredibly educational! I just joined this community after getting laid off from my nonprofit job three weeks ago, and I've been stressed about a potential severance payment that my former employer mentioned might be coming. Reading through everyone's experiences here has been such a relief - especially learning about the release agreement distinction that seems to be the key factor in how EDD treats severance. @Madison King thank you so much for not only asking the question that I'm sure tons of us have wondered about, but also for following through with calling EDD and sharing their official response. That kind of thoroughness is exactly what makes this community so valuable. The fact that you got them to note it in your account proactively was brilliant. I'm definitely going to call EDD myself before my severance potentially arrives, armed with all the insights from this discussion. The consensus seems clear: be completely transparent when reporting, have your documentation ready, and don't panic if your account goes to pending review. This thread should honestly be pinned as a reference for anyone dealing with severance questions!

This thread has been such a goldmine of information! I'm currently about 6 weeks into my EDD claim after getting laid off from my marketing agency, and I've been anxiously waiting to hear about a potential severance package. Reading through everyone's experiences - especially @Madison King's detailed journey from initial worry to getting official EDD confirmation - has completely changed how I understand severance payments and unemployment benefits. The release agreement distinction is absolutely crucial information that I never would have known about otherwise. It's amazing how that one factor can completely change how EDD treats the payment. I'm also really impressed by how many people came back to share their outcomes, both good and challenging - that kind of follow-through creates such a valuable resource for the community. I'm definitely planning to be proactive like Madison was and call EDD before my severance potentially arrives. Having them note the situation in my account ahead of time seems like such a smart move to avoid any automatic system flags. Thanks to everyone who shared their real experiences - this is exactly the kind of practical guidance that makes navigating unemployment benefits so much less scary for those of us who are new to the system!