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Sofia Martinez

Can I collect Washington ESD unemployment benefits if I get severance pay?

My company is laying me off next month and they're offering 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 severance? I've heard conflicting information about whether severance affects your eligibility. Has anyone dealt with this situation before? I really need to know because I'm trying to figure out my finances.

Yes, you can usually collect unemployment benefits even with severance in Washington State. The key is HOW the severance is paid out. If it's a lump sum, it typically doesn't affect your weekly benefits. If it's paid out over time like regular wages, it might reduce your weekly benefit amount.

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That's helpful! It's being paid as a lump sum, so sounds like I should be okay. Do I need to report it when I file my initial claim?

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Definitely report it on your initial application. Washington ESD will determine if it affects your benefits, but being upfront prevents issues later.

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I went through this exact situation last year. Got 6 weeks severance as lump sum and was still able to collect my full UI benefits. Just make sure you're honest about it on your application.

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Good to hear a success story! Did Washington ESD ask for any documentation about the severance?

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They asked for a copy of my separation agreement during the phone interview, but that was it. Pretty straightforward process.

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Had trouble getting through to Washington ESD about this same question. Spent hours on hold trying to get clarification. Finally used Claimyr.com to get connected to an agent who explained the whole severance situation clearly. Worth checking out their video demo at https://youtu.be/7DieNd3C7zQ if you're having trouble reaching them.

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Never heard of Claimyr before but sounds useful. The Washington ESD phone lines are impossible to get through to normally.

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Yeah it saved me so much time and frustration. They basically handle the calling process for you so you don't have to sit on hold forever.

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Important distinction here - Washington ESD looks at whether severance is considered 'wages' or 'dismissal pay.' True severance (dismissal pay) usually doesn't affect your weekly benefit amount. But if your employer structures it as continued wages, that's different.

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How can I tell which category my severance falls into? The paperwork just says 'severance package.

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Look at how it's taxed and whether it's tied to your regular pay periods. If it's a lump sum payment separate from payroll, it's likely dismissal pay.

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This is confusing. Why does Washington ESD make everything so complicated? Just want to know if I can pay my bills.

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wait so severance doesn't count as income? that doesn't make sense to me

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It's income for tax purposes, but unemployment benefits have different rules. Washington ESD focuses on whether you're able and available for work, not just income.

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ok that makes more sense I guess. still seems weird though

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Thanks everyone for the responses! I feel much better about the situation now. Sounds like I should be able to collect benefits.

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Just remember to file your claim as soon as you're unemployed, even if you're still receiving severance. Don't wait.

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Will do! I'll file right after my last day of work.

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My friend got severance and unemployment at the same time. She said Washington ESD asked her to verify the severance amount during adjudication but approved her claim.

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How long did her adjudication take? I'm worried about delays.

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I think it was about 2 weeks? Not too bad compared to some of the horror stories I've heard.

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The whole system is so confusing. I had to call Washington ESD three times to get a straight answer about my severance situation. Each agent told me something different.

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That's exactly why I ended up using Claimyr. Got tired of the runaround and conflicting information.

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Might have to look into that if I run into more issues. The inconsistency is so frustrating.

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Been collecting unemployment for 2 months now. Had severance when I started and it didn't affect my weekly payments at all. Washington ESD just needed documentation.

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What kind of documentation did they want?

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Just a letter from HR explaining the severance terms and amount. Nothing too complicated.

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This is all making me nervous about my own situation. Got laid off last week with 4 weeks severance and haven't filed yet because I wasn't sure if I was eligible.

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File ASAP! You're likely eligible and there's a waiting period anyway. Don't miss out on benefits you're entitled to.

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Okay you convinced me. I'll file my claim tonight. Thanks for the push!

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Washington ESD website has info about this but it's buried in their FAQ section. Basically says lump sum severance doesn't affect weekly benefits but payments over time might.

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I looked at their website but found it hard to understand. The language is so technical.

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Yeah they definitely don't write it in plain English. Government websites are the worst for that.

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had severance last year and still got my full unemployment no problem. just be honest about it and you should be fine

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Thanks for sharing! Makes me feel more confident about the whole process.

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My employer tried to tell me I couldn't get unemployment because of my severance package. Turns out they were wrong. Always verify with Washington ESD directly, not just what your employer tells you.

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Good point! My HR department wasn't sure either, which is why I'm asking here.

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HR departments often don't know unemployment rules well. They're not the experts on Washington ESD policies.

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Just to follow up on the Claimyr thing - they really helped me get clarity on the severance question. The agent explained that Washington ESD looks at several factors, not just the fact that you got severance.

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What other factors do they consider? I'm in a similar boat.

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Things like whether you're able and available for work, if the severance is structured as wages vs dismissal pay, and timing of when you receive it.

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I'm a tax preparer and see this situation often. Severance is usually taxable income but doesn't necessarily disqualify you from unemployment benefits. Two different systems with different rules.

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That's a helpful perspective! Good to know they're treated differently for tax vs unemployment purposes.

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Exactly. Just make sure you set aside money for taxes on the severance since it's usually taxed at a higher rate.

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Washington ESD approved my claim even though I got 12 weeks severance. The key was that it was a true lump sum payment, not spread out over time.

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12 weeks is a lot! Did they ask for extra documentation since it was such a large amount?

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Nope, just the standard separation paperwork. Amount didn't seem to matter, just how it was paid.

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be careful about non compete clauses in your severance agreement. they can affect your ability to look for work which is required for unemployment

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Oh good point! I need to read through my agreement more carefully.

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yeah definitely check that. washington esd requires you to be actively seeking work

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Went through adjudication for my severance situation. Washington ESD agent explained that they just need to verify the details to make sure everything is reported correctly. Wasn't a big deal.

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How long did the whole adjudication process take for you?

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About 3 weeks total. They had to review my separation agreement and verify with my former employer.

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Bottom line from my experience: lump sum severance + unemployment benefits = totally doable in Washington State. Just be upfront and honest about everything.

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Perfect summary! Thanks everyone for all the helpful advice. I feel much more prepared now.

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Good luck with your claim! Hope everything goes smoothly for you.

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One more thing to consider - if your severance includes continuation of health insurance, that typically doesn't affect your unemployment benefits either. Different benefit entirely.

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Yes, my package includes 3 months of health insurance continuation. Good to know that won't be an issue.

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Right, Washington ESD is mainly concerned with cash payments and whether they constitute wages.

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