TWC payments delayed after layoff - is my severance package the issue?
I got laid off about 3 weeks ago and filed for unemployment right away. My claim says 'approved' but I haven't received any money even though I've been requesting payments every two weeks like I'm supposed to. I did get a severance package from my company (about $5,800) when they let me go. Could that be why TWC isn't sending me any payments yet? Do I need to wait until after the severance period or something? I'm getting worried because my bills are coming due soon and the TWC website doesn't explain anything about what's happening with my payments.
23 comments

Toot-n-Mighty
Yes, your severance is definitely affecting your benefits. TWC considers severance pay as wages for the time period it covers. For example, if your weekly salary was $1,450, then your $5,800 severance would cover about 4 weeks of wages. During those weeks, you won't get unemployment benefits because you're technically still being "paid" according to TWC rules. You should keep requesting payments though, because once that severance period ends, your benefits should start automatically if you've been doing everything else correctly.
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Tyrone Hill
AuthorThank you! That makes so much sense. My HR dept didn't explain this at all when I was laid off. Do you know if the severance period starts from my last day worked or from when I actually received the severance check? There was about a week in between.
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Lena Kowalski
i had this EXACT problem last yr. TWC wont pay u til ur severance runs out. keep doing ur payment requests tho!!! if u stop requesting they'll close ur claim and u'll have to start all over
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DeShawn Washington
This happened to my brother too. He thought he couldn't get anything because of severance but they eventually paid him after the severance period. Definitely keep doing your requests!
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Mei-Ling Chen
I'm going thru something similar but with vacation payout. It's SO FRUSTRATING that they don't explain this clearly anywhere!!! My claim has been "pending" for almost a month and I had to call like 50 times to finally get someone who explained that my final vacation payout was being counted as wages. Why don't they just tell us this in the first place??? The whole system is designed to make us give up I swear.
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Sofía Rodríguez
Totally agree!! I think they purposely make it confusing. My neighbor works at TWC and even she says their communication is terrible. Half the time the reps don't even know what they're talking about either.
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Aiden O'Connor
The previous commenters are correct. Texas counts severance as disqualifying for the period it would cover based on your normal weekly wage. The period begins on your last day of work, not when you received the check. Here's what you should do: 1) Calculate how many weeks your severance covers (severance amount ÷ weekly wage) 2) Continue submitting payment requests every two weeks 3) After that many weeks pass, your benefits should begin automatically 4) If they don't start after the severance period, you'll need to contact TWC You can find this policy in the TWC Unemployment Benefits Handbook under the "Other Types of Income" section. The system should automatically calculate this, but sometimes there are errors if your employer reported the severance differently.
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Tyrone Hill
AuthorThank you for such a detailed explanation! I just checked and my severance period should be ending next week, so hopefully the payments will start soon after that. Is there anything special I need to do when requesting payment after the severance period ends, or just the normal process?
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Aiden O'Connor
Just follow the normal payment request process. The system should automatically start paying you after the severance period ends. Make sure you're still meeting your work search requirements (minimum 3 activities per week) and documenting them correctly during this time. Those requirements apply even during weeks you won't be paid due to severance.
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Zoe Papadopoulos
Hmm, actually I think there's some confusion here. Severance doesn't necessarily disqualify you completely. When I got laid off in February, I received severance but TWC just reduced my weekly benefit amount proportionally for the weeks the severance covered. I still got some money each week, just less than the full amount. I would strongly recommend calling TWC directly to understand exactly how your specific severance is affecting your benefits. The rules can get complicated with different types of severance packages.
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Aiden O'Connor
You're partially right. It depends on how the severance is structured and reported by the employer. Lump sum severance typically delays benefits for the equivalent number of weeks, while ongoing payments may reduce weekly benefits as you described. This is why speaking with TWC directly is always the best option for clarity on individual situations.
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Jamal Brown
My cousin was in this exact situation last month and couldn't get a straight answer from the website. He tried calling TWC for two weeks and kept getting busy signals or disconnected. Someone at his old job told him about a service called Claimyr that got him through to TWC in about 20 minutes. They have a video showing how it works at https://youtu.be/V-IMvH88P1U?si=kNxmh025COIlIzKh. The TWC rep he spoke with explained exactly how his severance was affecting his claim and when he could expect payments to start. Might be worth checking out if you need a clear answer. Their website is claimyr.com
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Tyrone Hill
AuthorThank you for this tip! After reading all these comments, I definitely think I need to speak with someone at TWC directly to understand my specific situation. I've been trying to call but can't get through. I'll check out that video and see if it might help. Did your cousin have a good experience with the service?
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Jamal Brown
Yeah, he said it was pretty straightforward. The service called TWC for him and then connected him when they got through. Saved him from having to redial for hours. The TWC rep was able to look at his specific claim and tell him exactly when his benefits would start after the severance period. Gave him peace of mind knowing exactly what was happening.
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Sofía Rodríguez
when i got layed off last year i had a similar issue but it was because i checked the wrong box on my application. there's a specific question about severance that you have to answer right or it messes everything up. my payments were delayed for like 6 weeks because of it. did you double check all your answers? might be worth looking at your initial application again
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Tyrone Hill
AuthorOh no, that's concerning. I'm not sure if I answered that question correctly. I'll try to review my application. Do you remember which question it was specifically? And were you able to fix it without starting a whole new application?
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Sofía Rodríguez
it was something like "have you received or will you receive severance pay" and then there were followup questions about the amount and dates. i had to call TWC to fix it, they adjusted something on their end and then my payments started coming after my severance period ended. but this was during covid so maybe things are different now
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Toot-n-Mighty
Based on all the comments here, let me clarify a few things about severance and Texas unemployment that might help: 1) Lump sum severance typically delays benefits for the equivalent number of weeks (severance ÷ weekly wage) 2) Structured severance paid over time may reduce your weekly benefit amount instead 3) Vacation/PTO payouts are also considered wages that can affect benefits 4) The severance period usually starts from your last day worked 5) You MUST continue to request payments every two weeks and complete work search activities even during the severance period 6) Your claim will remain active, but payments will be $0 until the severance period ends Hopefully this helps clarify things for you and others in similar situations!
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Tyrone Hill
AuthorThis is incredibly helpful, thank you! I've been doing the payment requests but honestly wasn't keeping up with my work search activities because I thought it didn't matter during the severance period. I'll make sure to start doing those right away. Do you know if there's any way to make up for the missed work search activities from the past few weeks?
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Toot-n-Mighty
Unfortunately, you can't really make up for missed work search activities retroactively. However, since you won't be receiving benefits for those weeks anyway (due to severance), it might not impact you financially. The most important thing is to start doing and recording your work search activities now so you're in compliance when your benefits are scheduled to begin. If you've been genuinely looking for work but just not recording it, you could potentially explain that if it comes up during a TWC interview.
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Haley Bennett
I went through this exact same situation about 6 months ago and it was so stressful not knowing what was happening! The good news is that everyone here is giving you solid advice - your severance is almost certainly why you're not getting payments yet. One thing I learned that might help: TWC has a "benefit year earnings" section in your online account where you can sometimes see how they've calculated your severance period. It's not always updated right away, but it helped me understand exactly when my payments would start. Also, don't panic about the work search activities you might have missed during the severance period. Since you weren't getting paid anyway, it shouldn't affect your future benefits as long as you start doing them consistently now. I was worried about the same thing but it turned out fine. The waiting is the hardest part, but once your severance period ends, the payments should start automatically if everything else is in order. Hang in there!
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Julian Paolo
I'm in a very similar situation - got laid off 5 weeks ago with a $4,200 severance package and my TWC claim has been approved but no payments yet. Reading through all these comments has been SO helpful because the TWC website really doesn't explain any of this clearly at all! Based on my weekly salary, my severance period should end next week, so I'm hoping payments will finally start after that. I've been keeping up with the payment requests but honestly had no idea about the work search requirements during the severance period - I thought since I wasn't getting paid, those didn't matter yet. Definitely starting those immediately! One thing that's been really stressing me out is not knowing if I filled out the initial application correctly regarding the severance. I'm worried I might have made an error that's causing additional delays beyond just the normal severance waiting period. Has anyone had success getting TWC to review their application answers without having to start completely over? Thanks to everyone who shared their experiences - it's such a relief to know this is normal and that payments should start automatically once the severance period ends. The waiting is definitely the hardest part when bills are piling up!
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Fatima Al-Hashimi
I'm going through the exact same thing right now! Got laid off 4 weeks ago with about $6,000 in severance and was so confused why my approved claim wasn't paying out. Reading everyone's explanations here has been a huge relief - I was starting to think something was seriously wrong with my application. For your concern about the initial application, I'd recommend trying that Claimyr service someone mentioned earlier to get through to TWC and have them review your severance information. Even if you made a small error, they can usually fix it without making you restart the whole application process. The key is just getting through to someone who can actually look at your specific case. It sounds like your payments should start very soon if your severance period ends next week! I'm still waiting another couple weeks for mine to end, but at least now I know what's happening instead of just wondering if my claim got lost in the system somewhere. Good luck!
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