ESD Weekly Claim Question: How to Report Upcoming Severance When It's Not Tied to Future Dates?
I was laid off on November 17th and I'm struggling with how to report my severance package on my weekly unemployment claims. My situation: I'm getting a lump sum severance payment about 6 days after I sign a separation agreement, which I have 45 days to consider. I plan to sign on December 26th and expect to receive payment around January 2nd.\n\nFrom what I understand reading the ESD FAQs, this severance shouldn't affect my benefits since it's not tied to any specific time period after my last day. It's basically just compensation for signing away my rights to sue.\n\nBut the weekly claim questions are confusing me! When it asks 'Are you getting paid for any period after you last worked, such as Severance pay, pay in lieu, or termination pay?' - should I answer NO since my severance isn't tied to any period after my last day? It's just a one-time payment that happens when I sign?\n\nIf I'm supposed to answer YES, then I get confused by the follow-up questions about contracts and payment amounts. Since I haven't signed anything yet or received any money, I don't know what to put.\n\nI've tried calling ESD but can't get through, and messages take up to 30 days for a response. Has anyone dealt with this specific severance situation before? I really don't want to answer incorrectly and mess up my claim.
18 comments
Andre Laurent
You're on the right track. Since your severance payment isn't designated for any specific time period after your last day of work, you should answer NO to that question. The question is specifically asking if you're receiving money that's tied to specific weeks after termination (like getting 4 weeks of regular pay as severance). \n\nYour situation is different - you're receiving a lump sum payment in exchange for a signed agreement, not payment for specific weeks after your termination. You'll only need to report it during the week you actually receive the payment (likely in January based on your timeline).\n\nJust make sure that when you do receive the payment, you report it as income for that specific week. The system will then determine if it affects your benefits for that single week.
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Carmen Diaz
Thank you so much for that clear explanation! So just to confirm - I answer NO to the severance question for all my weekly claims until the actual week I receive the payment in January? Then for that specific week only, I would report it as income?
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Emily Jackson
BRO I HAD THE EXACT SAME ISSUE last month and it's such a headache!! The ESD system is SO CONFUSING with these questions. I spent like 2 weeks trying to figure this out. I answered YES at first and got stuck in the same loop you did with the follow-up questions. Ended up having my claim flagged for review and my payments got delayed by 3 weeks!!! \n\nThe person who finally called me back said I should have answered NO since my severance wasn't for specific weeks after my end date. Apparently there's a big difference between getting \
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Carmen Diaz
Ugh, that sounds awful! I definitely don't want my claim flagged and delayed. Did they end up fixing it for you without penalties? I'm worried about answering wrong and then being accused of fraud or something.
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Liam Mendez
i think the question is asking if ur getting paid for time after u stopped working. like if ur severance was
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Sophia Nguyen
This isn't quite right. All severance needs to be reported, but how it affects your benefits depends on the structure. The key is whether the payment is allocated to specific weeks after termination. Either way, you still need to report receiving the money during the week you get it.
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Jacob Smithson
Let me clear this up since there's some confusion. For ESD purposes, they distinguish between two types of severance:\n\n1) Severance that's allocated to specific weeks after your job ended (like \
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Carmen Diaz
This is extremely helpful, thank you! So to be extra clear - I just answer NO to the severance question on all my weekly claims until I actually receive the money in January. Then for that one week, I report it as income. Is there a specific category I should report it under when I do receive it?
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Isabella Brown
Hey there, just wanted to add that if you're struggling to get through to ESD (which is notoriously difficult), I recently used a service called Claimyr (claimyr.com) that helped me get through to an agent within about 25 minutes when I had confusion about my severance reporting. They have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3\n\nThey basically call ESD for you and then connect you when they get through. Saved me days of frustration and constant redialing. Might be worth it if you need to talk to someone directly about your specific situation.
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Carmen Diaz
That's really good to know - thank you! If I can't figure this out based on the advice here, I might try that service. Did you find the ESD agents were able to give you clear answers once you got through?
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Maya Patel
severance is so complicated with unemployment!!! when i got laid off in 2023 i had a similar package and i just said NO to that question because my HR dept told me it wasnt tied to any weeks after i stopped working. it was just a lump sum for signing the agreement. i didnt have any problems with my claim doing it that way. but maybe i got lucky?? the whole system is confusing af
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Jacob Smithson
You didn't get lucky - you answered correctly! Lump sum severance that's not allocated to specific weeks after termination is different from continuing wages. You still have to report the income in the week you receive it, but you answered the specific question correctly.
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Andre Laurent
One additional thing to keep in mind - when you do receive your severance payment in January, you'll need to report it as income for that week. Depending on the amount, it may reduce or eliminate your benefit for JUST that one week.\n\nFor example, if your weekly benefit amount is $950 and your severance payment is $3,500, you probably won't receive benefits for that one week. But your benefits should resume normally the following week.\n\nAlso, make sure you continue filing your weekly claims even for the week you might not receive a payment due to the severance. Skipping weeks can cause problems with your claim.
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Carmen Diaz
This is really helpful, thank you! My weekly benefit amount is $920 and my severance will be around $5,200 after taxes, so it sounds like I'll lose benefits for that one week in January but otherwise should be fine. I'll definitely keep filing every week regardless.
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Sophia Nguyen
While everyone's advice here is generally good, I want to point out that ESD's rules on severance changed slightly in 2024. You should still report the lump sum payment as income during the week you receive it. However, if your severance exceeds 1.5 times your weekly benefit amount, you need to report this on your claim by calling the technical support line. \n\nThis is a relatively new requirement that many people aren't aware of. It doesn't change how your benefits are calculated, but it's something ESD now requires for proper documentation.
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Emily Jackson
Wait what?? I didn't know about this 1.5x rule when I filed last month! Is this something new they added? I swear they change these rules every few months without telling anyone. How are we supposed to keep up with all these technicalities?
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Jacob Smithson
Just wanted to follow up based on all the comments. Here's what I believe is the correct approach for your situation:\n\n1) Answer NO to the question about being paid for periods after your last day of work (since your severance isn't tied to specific weeks)\n\n2) Continue filing weekly claims as normal\n\n3) For the specific week in January when you receive your severance payment:\n - Report it as income for that week\n - Select \
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Carmen Diaz
This is exactly what I needed - a clear step-by-step plan! I really appreciate everyone's help. The ESD website and materials just aren't clear on these specific situations. I'll follow these steps and hopefully everything will go smoothly.
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