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Reporting severance pay on ESD weekly claims after layoff - need help with specific questions

I just got laid off last week (October 21) and I'm trying to navigate the ESD weekly claim process while receiving severance. My severance payments started October 31 and will continue through March 9, 2025. I'm completely confused about how to answer some of the questions on the weekly claim form. Specifically, I'm stuck on these two questions: 1) "Is your employer paying you through a notice period?" Since I'm getting severance through March, should I answer YES to this? Or is severance different from a "notice period"? 2) "Did you or will you receive paid time off or sick, vacation or holiday pay?" My company paid out my unused PTO when I got laid off, but the actual payment arrived on Oct 31 with my first severance check. Should I mark YES for this week only and report the amount, or does this need to be reported differently? I want to make sure I'm reporting everything correctly to avoid any overpayment issues later. Has anyone dealt with reporting severance while on unemployment? Any help would be greatly appreciated!

Santiago Diaz

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For your first question, severance IS different from a notice period. A notice period is when they tell you in advance that you'll be laid off but you're still technically employed until that period ends. Since you were already laid off on Oct 21, you should answer NO to that question. For the second question, YES, you should report the PTO payout for the week you received it (Oct 31). Make sure to include the exact amount. You'll also need to report your severance pay each week when you receive it, which will likely reduce or eliminate your UI benefits during those weeks depending on the amount. Be sure to answer YES to "Did you receive any other income?" and select "severance pay" from the dropdown when filing your weekly claims.

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Riya Sharma

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Thank you so much for clarifying! That helps a lot. So to make sure I understand - I'll answer NO to the notice period question, but YES to the PTO question for this week only. And then I'll make sure to report my severance pay as "other income" each week I receive it. Does ESD automatically adjust my benefits based on the reported severance, or will I need to do something else?

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Millie Long

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Waitt a minute I don't think that's right... When I got laid off last year they kept paying me for 4 more weeks and ESD told me that WAS a notice period even though I wasn't working anymore. I think if your getting money from your employer after being laid off, that's technically a notice period payment not severance??? The whole thing is so confusing I almost gave up on filing!

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KaiEsmeralda

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My situation was different than yours then. My HR specifically called it "severance" in my paperwork and said it wasn't a notice period. Maybe different companies handle it differently? Now I'm even more confused!

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Debra Bai

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i went thru this exact same thing in january!! the esd rep told me that severance is NOT a notice period so u answer NO to #1. but u DO have to report the severance as "other income" every week u get it. and yes mark YES for the PTO payout but only for that one week. FYI your benefits will probably be reduced or $0 for the weeks ur getting severance if its more than ur weekly benefit amount. but keep filing anyway!! thats super important even if ur getting $0, becuz once severance ends u want ur claim to already be established.

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Riya Sharma

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Thanks for sharing your experience! That's really helpful to know. I'll definitely keep filing even if I get $0. My severance is actually pretty substantial so I might not get benefits until March, but I want to make sure I'm doing everything by the book.

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Gabriel Freeman

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To add some clarity here: 1) A notice period is specifically when you're informed of termination but still technically employed for a specific timeframe (typically 2-4 weeks). Severance pay is compensation provided after employment has already terminated. Since you were laid off on October 21st and are receiving severance payments starting October 31st, you should answer NO to the notice period question. 2) For the PTO payout, answer YES only for the week you received the payment (the week including October 31st). In subsequent weeks, you'll answer NO to this question. 3) You must report your severance payments as "other income" each week you receive them. ESD will automatically deduct dollar-for-dollar from your weekly benefit amount. If your severance exceeds your weekly benefit amount, you'll receive $0 for that week, but you've still satisfied the weekly claim requirement. Do continue filing weekly claims even if you're receiving full severance. This maintains your claim and ensures benefits resume smoothly once severance ends.

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Laura Lopez

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THANK YOU for explaining this!!! The ESD website is so vague about the difference between severance and notice periods. I wasted literally 6 hours trying to get through to someone on the phone last month to ask this exact question.

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Victoria Brown

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I spent 3 weeks trying to reach someone at ESD about a similar question when I was laid off. Kept getting busy signals or disconnected. Finally used a service called Claimyr that got me connected to an ESD agent in about 20 minutes. Totally worth it because the agent walked me through exactly how to report my severance and PTO correctly. They have a video that shows how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3. Their website is claimyr.com if you want to check it out.

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Riya Sharma

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I might need that if I run into issues! I tried calling ESD once already and waited for over an hour before getting disconnected. Super frustrating experience.

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KaiEsmeralda

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just be carful to keep all ur severance pay stubs!! my buddy got an overpayment notice 6 months after his claim ended cuz esd said he didnt report severance right. had to pay back like $5000!!! but he had all his paystubs and payroll report and proved he reported everything correctly. took 3 months to get resolved but he didnt have to pay it back.

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Riya Sharma

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That's scary! I'll definitely hang onto all my documentation. I'm taking screenshots of all my weekly claim submissions too, just to be safe.

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Santiago Diaz

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One more important thing: when you report your severance pay, you need to report it for the week you RECEIVE the payment, not the period it covers. So if you get paid biweekly, you'll report the full amount during the week you actually get the payment. And as others have said, definitely keep filing your weekly claims even if you're receiving $0 due to your severance deductions. This keeps your claim active and ensures you don't have to file a new claim when your severance ends in March.

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Millie Long

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Is that right?? When I was on UI last year my employer told me I had to divide my severance by the # of weeks it covered and report that amount each week. Now I'm wondering if I did it wrong... ugh ESD makes everything so complicated!

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Gabriel Freeman

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To address the confusion about how to report severance: The correct method is to report severance for the week you RECEIVE the payment. If you receive a lump sum covering multiple weeks, you report the entire amount for that week only. If your HR department specifically instructed you to allocate the payment across weeks, that would be a unique situation, but ESD's standard procedure is to report based on when payment is received, not when it's earned. This is different from how wages are reported (which are reported for the week worked, regardless of when paid). That's why severance reporting causes so much confusion.

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Riya Sharma

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Thank you for that clarification! I'll be getting severance payments bi-weekly, so I'll report the full amount during the weeks I actually receive the payments. This thread has been incredibly helpful.

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