To clarify, if you're talking about the lump sum payment

for unused vacation time, then you're right, that amount doesn't count.

I am referring to the additional money an employer pays the employee, which is pro-rated depending on how long the employee had been hired by the employer. That payment will not overlap with the unemployment checks. Take LZ's situation as an example, because the State over-calculated his severance payment for 2 more weeks, he got 2 weeks less unemployment compensation.