Can I claim ESD unemployment after severance payments end? Semi-monthly severance question
I've been with my company for almost 17 years (since 2008) and just got laid off yesterday. They're giving me a severance package that'll be paid out semi-monthly directly to my checking account for the next 4 months. I'm obviously hoping to find something new before that runs out, but if I don't, can I apply for unemployment benefits after my severance ends? I've lived in WA state since 2015 but never had to file for unemployment before. Do I need to report to ESD now that I've been laid off even though I'm getting severance? Or do I wait until the severance payments stop? Really confused about the whole process and don't want to mess anything up. Any advice is appreciated!
18 comments
Sean Flanagan
You can't collect unemployment while ur getting severance. but u can apply NOW and just report your severance income each week. that way when severance ends ur already in the system. that's what i did.
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Anastasia Popova
•So you're saying I should apply right away even though I know I'll be getting severance? Won't they just deny me?
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Zara Shah
Here's the correct information: Severance pay is considered deductible income under Washington state law. You should file your initial unemployment claim now, even while receiving severance. You'll need to report your severance payments when you file weekly claims, and your benefits will be reduced accordingly (possibly to $0 while receiving severance). This way, once your severance ends, you'll already be in the system and can continue filing weekly claims without interruption. If you wait until after severance ends to apply, you might miss out on potential benefits because ESD generally doesn't backdate claims without good cause.
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Anastasia Popova
•Thank you! This makes sense. So even if I get $0 while on severance, I should still file weekly claims? And when applying, do I use my layoff date as my last day worked even though I'm getting severance?
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Zara Shah
Yes, your last day physically working is your last day of work, regardless of severance. And absolutely continue filing weekly claims even if you're receiving $0 - this maintains your claim as active and fulfills the requirement to look for work (you'll need to document 3 job search activities per week). If you stop filing weekly claims, your claim could become inactive and you'd need to reopen it later.
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NebulaNomad
•I had a similar situation back in 2023...and I stopped filing weekly claims during my severance period cuz I thought there was no point if I was getting $0. BIG MISTAKE!!! When my severance ended I had to go through this whole reactivation process and lost like 3 weeks of benefits I should have gotten. Listen to this person!!
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Luca Ferrari
wait im confussed. does severance count as "earnings" or is it something different? i thought severance was like a goodbye gift from ur employer not actual wages?? My brother got laid off too and ESD told him his severance didn't count against his benefits but maybe the rules changed???
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Nia Wilson
•Severance pay is considered deductible income in Washington state. This means it's not technically "earnings" in the same way wages are, but it DOES reduce your weekly benefit amount. Your brother's situation may have been different, or perhaps there was a misunderstanding - the rules around this haven't changed recently. The key factor is how the severance is paid out (lump sum vs. ongoing payments) and how the employer reports it to ESD.
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Mateo Martinez
I HATE ESD and their confusing rules!!! I had severance last year and they messed up my claim SO BAD that I ended up having to pay back $3200 in "overpayments" because they said I reported my severance wrong. Their system is TERRIBLE and the instructions are completely unclear about what counts as income!!! Good luck actually getting anyone on the phone too - I spent WEEKS trying to reach someone without success.
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Aisha Hussain
•After trying for 3 weeks to reach someone at ESD about a similar issue, I finally found this service called Claimyr that got me through to an agent in about 30 minutes. Was totally worth it instead of constantly redialing and getting hung up on. They have a video showing how it works at https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 and their website is claimyr.com - saved me so much frustration!
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Ethan Clark
Here's another thing to consider - make absolutely sure you're meeting the job search requirements from day one, even while on severance. The requirement is 3 documented job search activities each week. If you don't do this and get audited later, you could be disqualified retroactively and have to pay everything back. I've seen this happen to several former coworkers.
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Anastasia Popova
•Thanks for this reminder. I'll definitely keep track of my job search activities. Is there a specific format ESD wants for documenting these? Do I need to upload proof somewhere or just keep records in case they ask?
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Ethan Clark
You'll enter your job search activities directly into your eServices account when filing weekly claims. For each activity, you'll need the date, type of activity (application, interview, etc.), employer/organization name, position, contact info, and sometimes additional details. You don't need to upload documentation, but keep your own detailed records (screenshots of applications, emails, etc.) in case you're selected for a job search review. They do random audits and will ask for proof.
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Nia Wilson
•Great advice. I'll add that networking events and certain types of training can also count toward your job search requirements. The full list of qualifying activities is on the ESD website under "Job search requirements." Just remember that in 2025, the requirement remains at 3 activities per week - this hasn't changed from last year.
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Anastasia Popova
Everyone has been so helpful - thank you! I'm going to apply right away and make sure I do those weekly claims even during severance. One last question: if I get a job offer during my severance period but the start date is after my severance ends, will I still be eligible for unemployment for those weeks between severance ending and my new job starting?
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Zara Shah
•Yes, you would be eligible for those weeks between severance ending and your new job starting, as long as you continue meeting all other requirements (filing weekly claims, conducting job searches, being able and available for work). Just make sure to accurately report your job acceptance and future start date when it happens.
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StarStrider
jut wondering - do you have to pay taxes on unemployment benifits? and do they take taxes out or you have to pay them later? trying to figure this out for my budgeting
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Nia Wilson
•Yes, unemployment benefits are taxable income. When setting up your claim, you'll have the option to have 10% withheld for federal taxes (there's no state income tax in WA). If you don't choose withholding, you'll need to account for taxes when filing your annual return. Many people don't realize this and end up with an unexpected tax bill.
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