This should help answer your questions:

http://www.las-elc.org/UnempInsuranc...agesEarned.pdf

"Similarly, you do not have to report severance pay in most cases because you did not earn the wages during the same weeks that you were collecting unemployment benefits. However, the EDD may view a severance payment as in-lieu-of-notice pay or wage continuation pay. If your wages continue after a layoff because the federal Worker Adjustment Renotification and Training (WARN) Act requires your employer to make these payments, you do not have to report this income. If the WARN Act does not apply, you do have to report in-lieu-of notice pay or wage continuation pay. A payment looks more like severance when paid in a lump sum at the time of termination and when provided to you for reasons other than a failure to give you advance warning that your job would be ending. In contrast, if you are receiving in-lieu-of-notice pay, you may be kept on the employer’s payroll after your job ends, receiving paychecks on the employer’s normal paydays, and the employer intends these payments to compensate you for not giving you advance notice of your layoff or discharge. Because this distinction can be difficult to figure out, you should consult an attorney or the Workers’ Rights Clinic on your particular situation (see the contact information on the last page of this Fact Sheet).
b.