Will severance pay disqualify me from EDD benefits or just reduce weekly amount?

You definitely need to report the severance when you certify. EDD considers severance as wages for the week(s) it was paid, not when it was earned. So if you got $6,800 in one week, that week you'll be considered fully employed and ineligible for benefits. But you can still certify for future weeks - just report the income accurately on the certification form. I wouldn't bother calling them proactively unless you run into problems after certification.

whoeever told u that is WRONG!!!! EDD doesn't just count it for 1 week. they spread it out over multiple weeks based on ur weekly pay. they'll take ur normal weekly salary and divide the severance by that. so if u made like $1700/week before, they'll count that as 4 weeks of "work" and ur benefits will be affected for a MONTH not just a week. the system is designed to SCREW YOU

Let me clarify this since there's some confusion. Severance pay handling depends on how your employer reports it: 1. If reported as a lump sum for a specific week - affects only that week 2. If reported as allocated over multiple weeks - affects benefits for those weeks You should check your severance letter to see how it's structured. Either way, continue certifying every two weeks and accurately report the income when asked. Your claim remains active even during weeks you're ineligible due to income. If you want to be 100% sure, calling EDD to verify would be best, but reaching them is notoriously difficult.

I got a severance last year and just reported it on my certification. Just make sure you're honest about it - EDD will cross-check with your employer and if the amounts don't match up you could get flagged for an interview.

If you're having trouble getting through to EDD to ask about your specific situation (which honestly you should do since severance can be complicated), I used Claimyr recently and it worked really well. They connect you directly to an EDD agent without the constant busy signals and hangups. Their website is claimyr.com and they have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km I spent days trying to get through on my own before using them, and I got connected to an agent in about 25 minutes. The peace of mind from getting official answers about my specific situation was worth it.

quick question - do u have to pay taxes on the severance too? or just the unemployment? im in a similar situation and not sure wat to do about taxes

UPDATE: Just wanted to let everyone know what happened. I called EDD (took forever to get through) and they confirmed my severance will be allocated over 4 weeks since that's how my employer reported it. I won't receive benefits during those 4 weeks, but my claim stays active. The rep said to keep certifying every two weeks as normal, report the income for those weeks, and after the 4-week period, my regular benefit payments will resume automatically. Thanks everyone for the help!

Just went through something similar a few months ago. The key thing I learned is that it really depends on how your employer codes the severance payment. Some companies will report it as wages for specific weeks (which is what happened in your case), while others report it as a lump sum payment for the termination date only. Since you got confirmation that yours will be spread over 4 weeks, you're in good shape knowing what to expect. One tip - make sure to save screenshots of your certification submissions showing you reported the severance income. I had a friend who got questioned about it months later and having that documentation saved her from a lot of headaches. Also, don't forget to look into whether your employer offers any job placement services or career counseling as part of the severance package. Sometimes there are benefits beyond just the cash payment that can help with your job search.

One thing to keep in mind is that if you find work during those 4 weeks when your severance is being allocated, you'll need to report that employment income too. EDD will look at both the severance allocation AND any new wages you earn. I made this mistake when I got a temporary gig during my severance period and it created some confusion on my claim. Just be super transparent about all income sources when you certify. Also, if you're actively job searching during this time, keep track of your work search activities since you'll still need to meet those requirements even during weeks when you're not receiving payments due to the severance.

Just wanted to share my experience from when I went through this about 8 months ago. I had a similar severance situation and the most important thing is to stay on top of your certifications even when you know you won't get paid. I made the mistake of skipping one certification thinking "what's the point if I'm not getting money anyway" and it actually delayed my benefits for an extra week once my severance period ended. EDD requires continuous certification to keep your claim active. Also, if you're planning to appeal anything or have questions later, keep detailed records of EVERYTHING - your severance letter, pay stubs, certification confirmations, any correspondence with EDD. The paper trail becomes super important if there are any discrepancies down the line. Good luck with your job search!

Just to add another perspective - I work in HR and deal with severance packages regularly. One thing that often trips people up is understanding the difference between "severance pay" and "pay in lieu of notice." True severance pay (like a retention bonus or goodwill payment) is typically reported as a lump sum, while pay in lieu of notice is usually allocated over the notice period you would have worked. Since your letter specifically says "in lieu of notice" for 4 weeks, EDD is treating it correctly as allocated wages. This is actually pretty standard and you handled it perfectly by getting confirmation from EDD directly. Pro tip: if you're job hunting during those 4 weeks, some employers might be flexible on start dates if you explain you have a severance allocation period. It's not uncommon and most HR departments understand the EDD timeline. Good luck with the search!

I went through a very similar situation about 6 months ago and wanted to share what I learned. The most important thing is to understand that even during those 4 weeks when you're not receiving benefits due to the severance allocation, your benefit year clock is still ticking. So if you have a 1-year claim, those 4 weeks still count toward that year even though you're not getting paid. Also, I'd recommend setting up a dedicated email folder for all EDD correspondence and take screenshots of your online account dashboard regularly. The EDD system can be glitchy and sometimes doesn't save information properly. Having your own backup records saved me when there was a discrepancy in my account months later. One last tip - if you do land interviews during those 4 weeks, don't feel pressured to start immediately. Many employers are understanding about unemployment timelines, especially if you explain you're in a severance allocation period. You've got this!

Just wanted to add something that helped me when I was in a similar situation last year. Since you'll have those 4 weeks where you're not receiving benefits, it's a good time to really focus on networking and job applications without the pressure of meeting the weekly work search requirements for payment purposes. You still need to do the searches for certification, but you can be more strategic about it. I used that time to reach out to former colleagues, update my LinkedIn profile, and even took a free online course that made me more competitive when I started interviewing. Also, don't forget to apply for any other benefits you might be eligible for during this gap - things like CalFresh or local assistance programs if you need them. The severance helps but every little bit counts when you're between jobs. Keep your head up - having that severance cushion actually puts you in a better position than many people facing unemployment!

I've been following this thread and wanted to add one more perspective that might help others in similar situations. If you're considering taking any freelance or contract work during your severance allocation period, be extra careful about how you report it. Independent contractor income is handled differently than regular wages, and you'll need to report gross earnings rather than net. I learned this the hard way when I picked up some consulting work during my severance period and initially reported only what I actually received after expenses. EDD flagged it during a later audit and I had to provide 1099 documentation to clear things up. Also, if anyone is considering starting their own business during unemployment, California has a Self-Employment Assistance Program (SEAP) that lets you receive unemployment benefits while starting a business instead of looking for traditional employment. It's not widely advertised but can be a great option for the right situation. You have to get approved before starting though - you can't apply retroactively.

This has been such an informative thread! I'm in a very similar situation - just got laid off two weeks ago and received a severance package. Reading through everyone's experiences and advice has been incredibly helpful in understanding how EDD handles these situations. One thing I want to add for anyone else going through this: make sure to also check if your former employer is providing COBRA continuation for health insurance. Sometimes the severance paperwork mentions it, but it's easy to miss among all the other details. You typically have 60 days to elect COBRA coverage, and having that safety net during your job search can be just as important as the unemployment benefits. Also, if your company had an Employee Assistance Program (EAP), you might still have access to career counseling services for a period after termination. I discovered mine offers resume review and interview coaching for up to 90 days post-employment, which could be really valuable during the job search process. Thanks to everyone who shared their experiences - it's made navigating this whole process feel much less overwhelming!

I'm currently dealing with a very similar situation and this thread has been a lifesaver! Got laid off three weeks ago with a $5,200 severance that my employer structured as "pay in lieu of notice" for 3 weeks. Like many others here, I was initially confused about whether to report it as a lump sum or allocated over time. After reading everyone's experiences, I called EDD (used the callback service someone mentioned - much better than trying to get through directly) and confirmed that mine will also be allocated week by week. No benefits for those 3 weeks, but my claim stays active as long as I keep certifying. One thing I wanted to add that I haven't seen mentioned yet: if you have any pending reimbursements from your former employer (like business expenses or vacation payouts), make sure you understand how those will be reported too. My HR department told me that unused vacation time gets reported separately from severance and might affect different weeks depending on when it's processed. Just another wrinkle to keep track of! Thanks to everyone who shared their experiences - it's made this whole process so much less stressful knowing what to expect.