Can I claim TWC unemployment after receiving severance lump sum payment?

yes u can still file but they might make u wait depending on how many weeks the lump sum is supposed to cover. just be honest about it when u file

Apply for unemployment immediately, don't wait. The TWC will calculate if your severance affects your benefits. When you file, there's a specific question about severance pay - answer yes and provide the amount and date received. The TWC will then determine if your benefits need to be delayed or reduced based on your specific situation. Generally, if your severance is equal to 6 weeks of pay, they might delay your benefits for 6 weeks. But it's better to get in the system right away since the application process itself can take time.

So I just went through this EXACT thing last month!! The way TWC handles severance depends on how your employer reported it. Mine was reported as "wages in lieu of notice" and TWC treated it differently than regular severance. Here's what happened to me: 1. Got laid off with 4 weeks lump sum 2. Filed for unemployment THE SAME DAY (do this!!) 3. Had to report the severance on my application 4. TWC sent me a determination letter saying my benefits would start after the 4 week period My advice: file immediately and be 100% honest about the severance. Better to have everything in process while you wait than to delay filing.

Remember that severance pay is considered disqualifying income by TWC, but that doesn't mean you shouldn't apply right away. As others mentioned, file immediately and be completely transparent about your severance. When you apply, you'll need to provide: - The total amount of severance ($5,200 in your case) - The date you received or will receive it - Any information about how the severance was calculated (# of weeks, etc.) TWC will then determine your eligibility period. They'll likely divide your severance by your weekly benefit amount to calculate how many weeks you'll need to wait before benefits kick in. For example, if your weekly benefit would be $521, they'd divide $5,200 by $521, resulting in approximately 10 weeks of delay. Also important: Even during this waiting period, you MUST continue to request payment every two weeks and fulfill your work search requirements.

The TWC system is SO frustrating right now. I've been trying to call them for WEEKS about my severance question and can't get through - always busy signals or disconnections after waiting forever. I finally used this service called Claimyr (claimyr.com) that got me through to an actual TWC agent in about 20 minutes. They have a video showing how it works here: https://youtu.be/V-IMvH88P1U?si=kNxmh025COIlIzKh The agent confirmed exactly what others are saying - file immediately, report the severance, and then TWC will calculate your waiting period. She also told me that different types of severance are treated differently (regular severance vs. wages in lieu of notice), so it's important to get the correct information from a rep.

Everyone saying file right away is CORRECT!!! I waited 3 weeks after getting my severance to file and that was a HUGE mistake. TWC counted my waiting period from my separation date, not my filing date. So I basically lost out on 3 weeks of benefits I could have been eligible for after my waiting period. Don't be dumb like me!

My severence was different cause they let me take it in payments instead of lump sum. TWC said I had to report each payment as I got it and it affected my benefits each time. So lump sum might actually be better in your case cause you get the waiting period over with all at once.

Just to clarify one important point: make sure you understand the difference between severance pay and vacation/PTO payout, as TWC treats them differently. If part of your lump sum is unused vacation time being paid out, that's handled differently than true severance. Vacation payout is considered earned wages from past work and doesn't typically delay benefits the same way severance does. When you file, TWC will ask about both separately, so check with your HR department for a breakdown of your lump sum if you haven't already received an itemized statement.

btw make sure u keep up with ur work search requirements even while waiting for benefits to start!!! u still gotta do the 3 job contacts each week

One more tip: once you file and report your severance, TWC will send you a determination letter explaining exactly when your benefits will start. Keep an eye on your correspondence inbox on the TWC website. Mine took about 10 days to arrive after I applied. The letter will give you the exact date you can start requesting payments.

Just want to echo what everyone else is saying - file IMMEDIATELY! I made the mistake of waiting when I got laid off with severance last year. The clock starts ticking from your separation date, not when you file. Also, when you're on the TWC website filing, there's a specific section about "separation pay" where you'll enter your severance info. It's pretty straightforward - just the amount and date you received it. One thing I learned the hard way: even though you might have a waiting period before benefits start, you still need to keep requesting payment every two weeks during that time. It feels weird requesting $0, but if you don't do it, you can lose eligibility later. Good luck! The whole process is confusing but everyone here gave you solid advice.

I went through this exact situation about 6 months ago! Got a $4,800 severance when my retail job eliminated my position. Here's what I wish I'd known: 1. File your claim THE DAY you're laid off - don't wait for the severance to hit your bank account 2. When you file, there's a question about severance/separation pay - be 100% honest about the amount 3. TWC will calculate your waiting period by dividing your severance by what your weekly benefit amount would be 4. You MUST still request payment every 2 weeks even during the waiting period (even though you'll get $0) 5. Keep doing your work search requirements during the waiting period too In my case, I had about a 7-week waiting period before benefits kicked in. The determination letter came pretty quickly and spelled everything out clearly. Don't stress too much - just be honest and file right away. The system is designed to handle severance situations, you just need to follow the process correctly. Your HR person giving you vague advice is unfortunately pretty typical, but the folks here have given you the real deal!

Just wanted to add one more important thing that I learned when I went through this - make sure you understand how TWC calculates your weekly benefit amount BEFORE your waiting period ends. During my severance waiting period, I used the TWC benefit calculator on their website to estimate what my weekly payment would be. This helped me budget better and plan for when benefits would actually start. The calculator uses your highest earning quarter from the past year, so gather your pay stubs or tax info if you want to get a rough estimate. Also, once your waiting period is over and you start receiving benefits, you'll still need to report any work you do and income you earn each week when you request payment. Just wanted to mention that since it caught me off guard the first time I had a small freelance gig during my unemployment period. The whole process is definitely overwhelming at first, but everyone here has given you great advice. File immediately, be honest about everything, and don't skip any of the weekly requirements even during your waiting period. You've got this!

I just went through this same situation a few months ago with a $6,000 severance from my construction job. Here's the timeline that worked for me: Day 1 (layoff day): Filed my unemployment claim online that same evening Day 3: Got confirmation email that my claim was received Day 12: Received determination letter saying I had an 8-week waiting period due to severance Week 9: Started receiving my first unemployment payments The key things that helped me: - I had my severance paperwork ready when filing (shows the exact amount and how it was calculated) - I set up direct deposit right away so payments would be automatic once they started - I kept a spreadsheet tracking my work search activities from day one, even during the waiting period One mistake I almost made: I thought I could take a short vacation during my waiting period since I wasn't getting benefits yet. But you still have to be available for work and actively searching the whole time, even when you're getting $0. Almost messed up my eligibility by planning a week-long trip! The waiting sucks but it goes by faster than you think, especially if you stay busy with job searching. And honestly, having that severance money to cover expenses during the waiting period made the transition way less stressful than it could have been.

I'm in a similar boat and this thread has been incredibly helpful! Just wanted to add that when you're gathering your severance paperwork, make sure you also have your last paystub handy when filing. TWC asks for your last day worked and final wages, and having that info ready made the application process go much smoother for me. Also, if your employer uses a third-party service for unemployment claims (like Equifax or TALX), they might contact you separately about your severance. Don't panic if you get additional forms - just fill them out honestly with the same information you gave TWC. One last thing: bookmark the TWC payment request page now while you're thinking about it. You'll need to request payment every two weeks starting the Sunday after you file, even during your waiting period. Setting a phone reminder for every other Sunday saved me from accidentally missing a request deadline. Good luck with everything! The consensus here is solid - file immediately and be transparent about your severance. The system is set up to handle this exact situation.