Can I apply for Washington ESD unemployment if I receive severance pay?
My company is laying me off next month and they're offering me a severance package worth about 8 weeks of pay. I'm wondering if I can still file for unemployment benefits with Washington ESD while receiving this severance? I've heard conflicting information - some people say severance disqualifies you completely, others say it just delays when you can start collecting. Does anyone know the actual rules for Washington state? I really need to plan my finances properly.
47 comments


Liam McGuire
You can definitely apply for unemployment in Washington even with severance pay. The key thing is WHEN you report it. Severance is considered wages, so it might delay your benefits start date depending on how much you receive and when it's paid out. You'll need to report it on your initial application and weekly claims.
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QuantumQuasar
•Thanks! So I should still file right away even though I'm getting severance? I don't want to mess up the application process.
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Liam McGuire
•Yes, file as soon as you're separated from work. Washington ESD will calculate how the severance affects your claim timing. Better to have everything on record from the start.
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Amara Eze
I went through this exact situation last year. Got 6 weeks severance and was still able to collect unemployment after. Washington ESD looks at severance as deductible income - they basically spread it out over the weeks it represents. So if you get 8 weeks worth of pay, you might have to wait 8 weeks before benefits kick in, but you can still file the claim.
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QuantumQuasar
•That makes sense. Did you have any trouble reaching Washington ESD to get clarification on your specific situation?
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Amara Eze
•Oh god yes, the phone system is a nightmare. I probably called 200 times over 3 weeks trying to get through. Actually ended up using this service called Claimyr that calls for you and gets you connected to an agent. Check out claimyr.com - they have a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works.
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Giovanni Greco
wait this is confusing me... if severance counts as wages doesn't that mean you're still technically employed? how can you file for unemployment if you're still getting paid??
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Fatima Al-Farsi
•No, severance isn't the same as regular wages. You're unemployed once your last day of work happens, but the severance payment might affect WHEN your unemployment benefits start. Think of it as a buffer payment, not ongoing employment.
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Giovanni Greco
•ok that makes more sense. so the separation date is what matters for filing, not when the severance runs out?
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Fatima Al-Farsi
•Exactly right. File based on your actual last day of work, then report the severance as income on your application.
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Dylan Wright
Be very careful about how you report this stuff. I know someone who got hit with an overpayment because they didn't report their severance correctly. Washington ESD takes this seriously and if they find out later you didn't disclose everything, you'll have to pay back benefits plus penalties.
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QuantumQuasar
•Yikes, that's scary. What's the best way to make sure I report it correctly? Is there a specific form or section on the application?
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Dylan Wright
•When you file your initial claim, there's a section about separation pay/severance. Be honest about the total amount and when you'll receive it. Also report it on your weekly claims if you're still receiving payments.
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Sofia Torres
ugh the Washington ESD system is so confusing about severance! I've been trying to get a straight answer about how they calculate the offset for weeks. Every time I call I get put on hold forever and then disconnected.
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GalacticGuardian
•Have you tried using that Claimyr service someone mentioned earlier? My coworker used it when she had questions about her standby claim and said it actually got her through to a real person at Washington ESD.
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Sofia Torres
•No haven't heard of that, what is it exactly?
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GalacticGuardian
•It's like a phone service that calls Washington ESD for you and gets you connected to an agent. She said it saved her hours of calling and getting busy signals.
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Liam McGuire
For anyone still confused about severance calculations, here's how Washington ESD typically handles it: If you receive severance equal to X weeks of your regular pay, you generally have to wait X weeks before unemployment benefits begin. But you should still file your claim right away to establish your claim date.
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Dmitry Smirnov
•Is this the same for everyone or does it depend on your specific situation?
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Liam McGuire
•It can vary based on how the severance is structured and when it's paid. Some companies pay it as a lump sum, others spread it out. The timing affects how Washington ESD treats it for benefit calculation purposes.
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Ava Rodriguez
I'm in a similar boat - getting laid off in February with severance. Question though: does it matter if the severance is paid out as a lump sum vs. spread over several paychecks? My company is giving me the option to choose.
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Fatima Al-Farsi
•Good question! Generally, Washington ESD looks at the total amount and what period it represents, not necessarily how it's paid out. But the payment method might affect the timing of when you need to report it on weekly claims.
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Ava Rodriguez
•So if I take it as a lump sum I'd report it all at once, but if it's spread out I report it each week I receive a payment?
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Fatima Al-Farsi
•That's typically how it works, yes. But honestly this is complex enough that you should verify with Washington ESD directly to be sure.
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Miguel Diaz
Does anyone know if unused vacation time counts the same as severance for unemployment purposes? My company is paying out 3 weeks of unused PTO along with 4 weeks severance.
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Amara Eze
•Unused vacation pay is usually treated differently than severance by Washington ESD. It's still reportable income but might not delay your benefits the same way. You'd need to report both though.
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Miguel Diaz
•Thanks, this is getting complicated. Might need to actually talk to someone at Washington ESD to sort out my specific situation.
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Amara Eze
•Yeah definitely recommend that Claimyr service I mentioned earlier if you need to reach them. So much easier than the regular phone system.
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Zainab Ahmed
Quick question - if my severance period overlaps with when I start a new job, does that affect anything with Washington ESD? Like if I get 6 weeks severance but find a job after 4 weeks?
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Liam McGuire
•If you start working before your severance period ends, you'd report the new job income and stop filing weekly claims. The severance wouldn't matter at that point since you're employed again.
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Zainab Ahmed
•Got it, so basically once I'm working again the severance becomes irrelevant to unemployment?
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Connor Gallagher
Man, this whole process is stressful. I got laid off last month with severance and still haven't heard anything definitive from Washington ESD about when my benefits might start. The waiting is killing me financially.
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AstroAlpha
•How long ago did you file? Sometimes it takes a few weeks for them to process claims with severance because they have to calculate everything.
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Connor Gallagher
•Filed about 5 weeks ago. My claim shows 'under review' but no other details. I've tried calling but can never get through.
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Yara Khoury
•You might want to try that Claimyr thing people keep mentioning. I used it last week to check on my adjudication status and actually got to talk to someone at Washington ESD who explained what was happening with my claim.
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Keisha Taylor
For what it's worth, I think the severance rules are pretty fair. It makes sense that if you're getting paid severance equivalent to 8 weeks of work, you should wait 8 weeks before collecting unemployment. Otherwise people would be double-dipping.
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Paolo Longo
•I guess that's logical but it's still tough when you're trying to plan your finances and don't know exactly when benefits will kick in.
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Keisha Taylor
•True, the uncertainty is definitely the hardest part. That's why it's important to get clear information from Washington ESD upfront about your specific situation.
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Amina Bah
Does the amount of severance affect your weekly benefit amount once you do start collecting? Or just the timing of when benefits begin?
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Fatima Al-Farsi
•Generally just the timing. Your weekly benefit amount is calculated based on your earnings history during the base period, not on severance payments. The severance mainly affects WHEN you can start collecting.
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Amina Bah
•That's good to know, thanks! So once benefits start, they should be the full amount I'm eligible for.
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Oliver Becker
Anyone know if there's a maximum amount of severance that affects unemployment? Like if someone got a huge severance package, would they have to wait years before collecting benefits?
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Liam McGuire
•I believe Washington ESD has some limits on how long severance can delay benefits, but I'm not sure of the exact details. That would be a good question for an actual Washington ESD representative.
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Oliver Becker
•Makes sense, probably depends on individual circumstances too.
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CosmicCowboy
This thread has been really helpful! I was worried I couldn't file for unemployment at all with my severance package. Sounds like the key is just being upfront about everything and reporting it correctly.
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QuantumQuasar
•Agreed! I feel much more confident about filing now. Thanks everyone for sharing your experiences and knowledge.
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Natasha Orlova
•Yes, transparency is definitely the way to go with Washington ESD. They have access to wage records anyway, so it's better to be honest upfront than deal with overpayment issues later.
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