ESD claim question: How to report lump sum severance and bonus pay after layoff?

Yes, you should report both the severance and bonus when you file your weekly claim after receiving them. They would typically be reported as separation pay. Be aware this will likely impact your benefit payments for that week and possibly future weeks depending on the amount. Make sure to keep documentation of exactly what portion was severance and what was bonus in case ESD requests verification.

i went thru somthing similar last yr!! my severance was smaller (like 4K) but ESD counted it against my benifits for like 4 weeks i think??? they did some weird calculation based on my weekly benefit amount. the agent i talked to said bonuses count as income for the week u receive them even if u earned them earlier. its super confusing tho so maybe double check

The way ESD handles severance is they take the total amount and divide it by your weekly benefit amount to determine how many weeks your benefits will be affected. So if your weekly benefit is $850 and your total severance+bonus is $11,800, they'll likely offset your benefits for about 14 weeks (11800 ÷ 850 = ~14). Make sure you report it correctly on your weekly claim as "separation pay" in the week you actually receive it, not before. You should still file each week even during this period where your benefits might be reduced or zero.

I went through EXACTLY this in January 2025. I got my severance and performance bonus in one check too. Here's what you need to know: 1. Yes, report it as separation pay when you file the claim after receiving it 2. Keep all documentation showing what amount was severance vs. bonus 3. ESD will likely put your claim on hold and you'll get a notice asking for more information 4. They'll probably request paystubs or employer documentation 5. You'll need to keep filing weekly claims even during this period In my case, they ended up treating the severance as separation pay (spread over several weeks) and the bonus as income just for that week. But I had to actually talk to someone at ESD to get it sorted correctly.

I had to deal with this EXACT situation back in 2024 and it was a complete NIGHTMARE trying to reach ESD to explain the difference between my severance and bonus! I ended up using Claimyr (claimyr.com) to get through to an actual human at ESD. They have this service where they basically connect you directly to an ESD agent so you don't have to keep calling and getting disconnected. They have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3. It was honestly worth it because the agent I spoke with was able to properly code my severance vs. bonus payments correctly in their system, which saved me a ton of hassle later.

wait i thought bonuses dont count against unemployment?? my friend got a retention bonus after layoff notification and said it didnt affect her payments at all, now im confused

Update: I called ESD this morning (took forever to get through!) and they confirmed I should report both the severance AND bonus as separation pay when I receive them. The agent said they'll calculate how many weeks it affects based on my weekly benefit amount. They also said I should upload documentation showing the breakdown between severance and bonus through my eServices account. Thanks everyone for your help!

i had the same thing and what nobody told me was u still need to do ur job searches even when ur benefits r $0 during the severance period!!!! dont forget or theyll disqualify u!!!