If you get a severance package does that delay your unemployment benefits (New York) If you are laid off, and receive a one month severance package along with vacation pay, does this delay your unemployment benefit check Hi, It depends on the state and sometimes the purpose of the severance. I will assume we are talking about NY. See Section 1460 It provides various scenarios. Regardless, when a severance payment is deducted whether it be a lump sum or not .. it is because although unemployed .. the payment is still considered wages. So yes, severance pay can delay benefits if considered earnings by the state .. many states also consider vacation time paid out as reportable earning too.