


Ask the community...
Bottom line for everyone asking - yes you pay federal taxes on unemployment, no state taxes in Washington. Set up 10% withholding if possible, keep good records, and don't panic if you haven't been planning for taxes. You can still get it sorted out.
I went through this exact same situation last year! The tax withholding option can be really hard to find sometimes. What worked for me was logging into the Washington ESD website on a desktop computer (not mobile) and looking carefully during the weekly claim process. It's usually after the work search questions but before you submit. If you still can't find it, you can also call and ask them to add the withholding to your account - though I know the phone system is frustrating. For what it's worth, even though 10% withholding might not cover everything depending on your tax bracket, it definitely helps avoid that huge surprise bill at tax time. Don't stress too much about the money you've already received without withholding - just start saving what you can going forward and consider setting aside maybe 15-20% of your weekly payments if possible.
This is really helpful advice, thank you! I'm definitely going to try the desktop version next time I file my weekly claim. The mobile site has been giving me issues with other things too. I appreciate you mentioning the 15-20% savings rate - I was wondering what would be a safe amount to set aside since 10% withholding might not be enough. Better to save too much than be caught short at tax time.
I'm so sorry you're dealing with this situation - having a "temporary" layoff turn permanent after months of waiting is incredibly frustrating, and unfortunately it's becoming way too common with companies trying to avoid proper notice requirements. You've gotten fantastic advice here already about reporting your severance. I'll just add that it's really important to get clarification from HR about exactly how they're structuring your severance payment. Ask them specifically if it's meant to cover a certain number of weeks or if it's just a lump sum goodbye payment. Getting this in writing will save you headaches when reporting to ESD. One practical tip for when you transition off standby: start bookmarking job sites and company career pages now so you'll have plenty of places to search when the weekly job search requirements kick in. Having a list of 10-15 go-to sites makes it much easier to consistently find 3 activities each week. Also consider this - after 11 years at one company, you probably have skills and experience that you haven't had to "sell" in a long time. This might be a good opportunity to really think about what you want to do next and maybe even explore roles or companies you wouldn't have considered before. I know it's scary right now, but you'll get through this. Focus on one step at a time and don't hesitate to ask questions here if you run into any issues with ESD. This community is really helpful!
This is such great advice, especially about getting the severance structure clarified in writing from HR! I hadn't thought about bookmarking job sites ahead of time, but that's really smart - it would definitely make the weekly requirements less stressful. You're absolutely right that after 11 years at one place, I probably need to really think through how to present my skills and experience to new employers. It's been so long since I've had to job search that the whole process feels pretty intimidating. But reading everyone's responses here has made me feel much more prepared and confident about handling both the ESD requirements and eventually finding something new. Thanks for the encouragement and practical tips!
I'm really sorry you're going through this - being told a layoff is "temporary" for months only to discover the company is permanently closing is such a betrayal of trust, and unfortunately it's happening more and more these days. You've received excellent advice here about reporting your severance pay. I just want to emphasize how crucial it is to read your severance agreement very carefully, especially any language about time periods it covers. If there's ANY ambiguity about whether it's allocated over specific weeks, don't hesitate to ask HR for clarification in writing before you sign anything. One thing I learned from my own layoff experience: start updating your resume and LinkedIn profile NOW while you're waiting for the severance paperwork. After being at the same company for 11 years, you'll probably need time to think through how to present all your accumulated skills and achievements. It's much easier to work on this when you're not under pressure to start job searching immediately. Also, when you do switch from standby to regular unemployment, consider setting up a simple tracking system for your job search activities from day one. Even a basic spreadsheet with company names, positions, dates, and application methods will make your weekly claims much smoother and protect you if ESD ever audits your search activities. This situation is definitely overwhelming, but you have 11 years of solid work experience and the job market is actually pretty strong right now. Take it one step at a time and don't be afraid to lean on this community if you have more questions. You've got this!
My benefits ran out 3 weeks ago and I'm starting to panic. Applied for food stamps and Medicaid but everything takes forever to process. This is so stressful.
I'm in a similar situation and just went through this process. Unfortunately, Washington state doesn't currently have extended benefits available - they're only triggered when unemployment rates hit specific federal thresholds, which we haven't reached. However, I did find a few options that might help: 1) Training Benefits through WorkSource if you qualify for approved retraining programs, 2) checking with local community colleges for workforce development programs that might come with financial assistance, and 3) looking into emergency assistance programs through DSHS. The key is getting connected with an actual WorkSource counselor who can assess your specific situation. Don't give up - there are resources available even if they're not obvious at first glance.
This is really helpful, thank you for breaking it down so clearly! I hadn't thought about community college workforce programs - that might be exactly what I need. Did you end up qualifying for any of these options yourself? Also wondering how long the WorkSource counselor process takes since my benefits literally end in 2 weeks.
To answer your follow-up question - you should continue filing weekly claims until your earnings exceed your weekly benefit amount. When you report full-time work or earnings higher than your benefit amount, the system will automatically stop your claim. This is important because if your job doesn't work out during the first few weeks (which happens sometimes), you won't have to restart your claim from scratch. Once you're stable in your new job, your claim will just become inactive automatically.
Congratulations on the new job! Just to reinforce what others have said - yes, you absolutely must report those work hours even though you haven't been paid yet. The weekly claim asks about work PERFORMED during the claim week, not when payment is received. Since you worked 40 hours at $18/hour ($720 gross), that's definitely above your $624 weekly benefit amount, so you likely won't receive unemployment benefits for that week. But still file your claim and report everything accurately - this protects you from any potential overpayment issues later. For future reference, keep filing weekly claims until you're confident the job is stable. If something happens and you lose the job in the first few weeks, you'll be able to continue receiving benefits without having to restart your entire claim. Good luck with the new position!
Rajiv Kumar
UPDATE: You all were right! It was a system error. After trying everything (calling repeatedly, messaging through the portal, contacting our state rep), we finally got through to someone at ESD by calling the governor's office. They had a liaison who escalated it to someone with higher access at ESD. They reversed the bogus $26K charge completely AND processed the refund for the money they'd been taking from his benefits! The money should be deposited next week. I'm incredibly relieved but also disturbed by how easy it would have been to just give up and accept their mistake. The ESD rep actually told us this has been happening to other people too after appeals - the system incorrectly doubles or triples overpayment amounts instead of removing them. For anyone else facing this nightmare: DOCUMENT EVERYTHING, be persistent, and don't be afraid to go straight to the governor's office if needed. Thank you all for your support and advice!
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Chloe Delgado
•This is excellent news! I'm so glad you got it resolved. The governor's office route is often underutilized but can be very effective for ESD issues. Thanks for coming back to update us - this information will help others in similar situations.
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Aria Washington
•Congrats on the win! It's absolutely terrifying that these "glitches" keep happening. Imagine if you hadn't been persistent or tech-savvy enough to fight this. How many people just give up and pay money they don't actually owe? The system needs major oversight and accountability.
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Ava Rodriguez
Wow, what a rollercoaster! I'm so relieved to see your update that everything got resolved. This whole situation is both inspiring and deeply troubling. Inspiring because it shows that persistence and knowing where to escalate can actually work, but troubling because of how broken the system clearly is. The fact that an ESD rep admitted this is happening to "other people too" after appeals is really concerning. It makes you wonder how many folks just accepted these inflated amounts because they didn't know how to fight back or gave up after hitting the usual dead ends. Your experience is going to be invaluable for others facing similar issues. The governor's office route seems like it should be more widely known - I never would have thought to try that approach. Thanks for sharing the whole journey and coming back with the resolution. Stories like this give people hope that these bureaucratic nightmares can actually be fixed with the right approach!
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