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Joseph
Joseph, Lawyer
Category: California Employment Law
Satisfied Customers: 5299
Experience:  Extensive experience representing employees and management
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I am applying for California Disability Benefits after being

Resolved Question:

I am applying for California Disability Benefits after being on a 12 month severance package from Bank Of America. The EDD people are not allowing my severance pay as wages for calculating my benefit per section 1265. My question is why did I continu to pay CA-SDI taxes on my pay when received over the 12 month severance period, if I am now not allowed to use those wages in calculating my benefit?
Submitted: 4 years ago.
Category: California Employment Law
Expert:  Joseph replied 4 years ago.
Hello and welcome to JustAnswer.

Unfortunately, severance pay is not considered to be wages for EDD purposes, even though you were required to pay CA-SDI taxes on the severance pay that you received.

I realize that this is frustrating, but unfortunately, it is the legal status of severance payments.

For more information on severance pay as not being part of wages for EDD purposes, see this website:

http://edd.ca.gov/UIBDG/Total_and_Partial_Unemployment_TPU_46035.htm
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