Can I collect Washington ESD unemployment benefits if I receive severance pay?
My company just laid me off after 8 years and they're giving me a severance package worth about $12,000 paid out over 3 months. I want to file for unemployment benefits with Washington ESD but I'm not sure if the severance will disqualify me or reduce my weekly benefit amount. Does anyone know how this works? I really need the unemployment income to cover my bills while job searching.
44 comments


Raúl Mora
You can still collect unemployment benefits while receiving severance pay in Washington, but it depends on how the severance is structured. If it's paid as a lump sum or as salary continuation, it might affect your weekly benefit amount differently. The key is whether Washington ESD considers it 'wages' for the period you're receiving it.
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Arjun Kurti
•It's being paid out monthly over 3 months, not a lump sum. Does that make a difference?
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Raúl Mora
•Yes, that could make it count as wages for those weeks, which might reduce your weekly UI benefit. You'll need to report it when you file your weekly claims.
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Margot Quinn
I went through this same thing last year. Had to report my severance on my weekly claims and it reduced my unemployment benefits during those weeks. Washington ESD has specific rules about how they calculate it - I think they divide your weekly severance amount by your weekly benefit amount or something like that.
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Arjun Kurti
•How much did it reduce your benefits? Was it dollar for dollar or some kind of formula?
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Margot Quinn
•It wasn't dollar for dollar thankfully. I think if your severance is less than your weekly benefit amount, you can still get partial unemployment. But honestly the calculation was confusing and I had to call Washington ESD to get it straight.
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Evelyn Kim
•Good luck getting through to Washington ESD on the phone though. I've been trying for weeks about my own claim issues and can never get through.
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Diego Fisher
Actually, I just went through this exact situation and found a service called Claimyr that helped me get through to Washington ESD quickly. You can check it out at claimyr.com - they have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works. Saved me hours of calling and redialing.
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Henrietta Beasley
•Is that one of those paid services? How much does it cost?
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Diego Fisher
•They focus on helping you get through to an actual person at Washington ESD rather than dealing with the automated system. Worth it when you need answers about complex stuff like severance calculations.
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Lincoln Ramiro
The important thing is to be completely honest about your severance when you file your initial claim and on your weekly claims. Washington ESD will eventually find out anyway through employer reporting, and if you don't report it upfront you could face an overpayment situation later.
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Arjun Kurti
•That's a good point. I definitely don't want to deal with having to pay back benefits later.
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Faith Kingston
•Yeah my friend got hit with an overpayment notice for like $4000 because she didn't report her severance correctly. Took her months to sort it out.
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Emma Johnson
wait so if you get severance you can still get unemployment?? I thought it was one or the other
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Raúl Mora
•It's not one or the other, but the severance might reduce your weekly unemployment benefit amount depending on how much you're getting and how it's paid out.
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Emma Johnson
•oh ok that makes more sense. i was worried i'd have to choose between them
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Liam Brown
I'm dealing with something similar but my severance was a one-time lump sum of $15K. Washington ESD told me they have to spread that out over however many weeks it would have been regular salary to determine how it affects my benefits. So complicated!
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Arjun Kurti
•Did they give you a formula for how they calculate the weekly amount from a lump sum?
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Liam Brown
•They divide the total severance by your regular weekly salary to get the number of weeks it covers, then treat it like you're getting that weekly amount for that many weeks.
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Olivia Garcia
This whole system is so confusing. Why can't Washington ESD just have clear guidelines posted somewhere instead of making everyone call in to figure it out?
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Noah Lee
•There are guidelines but they're buried in their handbook somewhere. Every situation is different though so it's hard to have one-size-fits-all rules.
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Olivia Garcia
•I guess that's fair but it would save everyone time if the basic info was easier to find.
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Ava Hernandez
Pro tip - when you do get through to Washington ESD, ask them to calculate it for you while you're on the phone. Don't just get a general answer. Give them your specific severance amount and payment schedule and have them walk through the calculation so you know exactly what to expect on your weekly claims.
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Arjun Kurti
•That's smart advice. I'll make sure to have all my severance details ready when I call.
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Isabella Martin
•And write down everything they tell you including the person's name and date you called. Sometimes you get different answers from different agents.
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Elijah Jackson
Does anyone know if vacation payout affects unemployment benefits the same way as severance? I'm getting both when my job ends next month.
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Raúl Mora
•Vacation payout is typically treated the same as severance - it needs to be reported and may reduce your weekly benefit amount for the period it covers.
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Elijah Jackson
•Great, so I'll need to report both. This is getting complicated fast.
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Sophia Miller
I used that Claimyr service someone mentioned earlier and it really does work. Got connected to a Washington ESD agent in like 20 minutes instead of spending all day redialing. They were able to explain exactly how my severance would affect my benefits.
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Mason Davis
•Did the agent give you consistent information or did you have to call back multiple times?
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Sophia Miller
•Just the one call thankfully. The agent was really knowledgeable and walked me through the whole calculation step by step.
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Mia Rodriguez
Make sure you keep all your severance paperwork too. Washington ESD might ask for documentation later, especially if there are any questions about the amount or timing of payments.
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Arjun Kurti
•Good point. I'll scan everything and keep digital copies as backup.
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Jacob Lewis
been there done that with severance and unemployment. the key thing is just being upfront about everything from the start. washington esd is pretty reasonable if youre honest with them but they dont like surprises
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Amelia Martinez
•Exactly. Honesty is always the best policy with these government agencies.
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Ethan Clark
One more thing - if your severance includes health insurance continuation (COBRA), that doesn't count as income for unemployment purposes. Only the actual cash payments matter for benefit calculations.
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Arjun Kurti
•That's helpful to know. My package does include COBRA coverage so I was wondering about that part.
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Mila Walker
•Yeah any non-cash benefits like insurance or stock options don't typically affect your unemployment eligibility or benefit amount.
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Logan Scott
Bottom line - you should definitely file for unemployment even with severance. Worst case scenario is your benefits get reduced for a few weeks, but you'll still be in the system and eligible for full benefits once the severance period ends.
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Arjun Kurti
•That makes sense. Better to file now and get the process started than wait until the severance runs out.
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Chloe Green
•Plus there's usually a waiting period anyway, so filing early means you'll be ready to collect full benefits sooner.
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Lucas Adams
Thanks everyone for all the helpful info! I feel much more confident about filing my claim now. Going to gather all my severance documents and file this week.
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Harper Hill
•Good luck! Feel free to post an update on how it goes.
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Caden Nguyen
•Yeah keep us posted. Your experience might help someone else in the same situation.
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