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!!!

Just wanted to add my experience from when I went through this last year - make sure you also ask ESD about the timing of when your benefits will resume after the severance period ends. In my case, there was about a 2-week delay between when my severance "ran out" and when my regular benefits kicked back in because they had to recalculate everything. I wish someone had warned me about that gap so I could have planned better financially. Also, if you have any unused vacation time being paid out, that might be treated differently than the severance and bonus, so ask about that too if it applies to your situation.

Just went through this exact scenario myself in February! One thing I'd add is to be prepared for potential confusion on ESD's end about the bonus vs severance distinction. Even after I clearly documented everything, they initially coded my entire lump sum as severance and spread it over way more weeks than it should have been. I had to call back twice to get them to separate out the performance bonus (which should only affect one week) from the actual severance pay. Also, pro tip - when you upload your documentation to eServices, include a cover letter or note clearly explaining which dollar amounts are which. The more explicit you can be, the better chance they'll process it correctly the first time. Good luck!

I'm dealing with a similar situation right now - got laid off in June and expecting a severance/bonus combo payment next month. This thread has been incredibly helpful! One question I haven't seen addressed yet: does the timing of when you actually RECEIVE the payment matter for reporting purposes? Like if the payment is dated for a Friday but doesn't hit my bank account until the following Monday, which week should I report it on? I want to make sure I'm reporting it on the correct weekly claim to avoid any issues. Also, has anyone had experience with ESD asking for bank statements to verify when you actually received the funds vs when they were issued?