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Lucas Lindsey

Can I collect Washington ESD unemployment benefits if I take a severance package?

My company is laying people off and they're offering severance packages. I'm trying to decide whether to take it or not. If I accept the severance, will Washington ESD still let me collect unemployment benefits? The package would be about 8 weeks of pay but I'm worried it might disqualify me from UI. Has anyone dealt with this situation before?

Severance payments can affect your unemployment benefits but it depends on how they're structured. If it's paid as a lump sum, it usually won't delay your benefits. If it's paid out over time like regular wages, it might affect your weekly claim eligibility during those weeks.

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It would be paid as a lump sum. So I should be able to file for unemployment right away?

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Generally yes, but you'll need to report the severance when you file your initial claim. Washington ESD will determine if it affects your benefits.

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I took severance last year and had no issues with my unemployment claim. Just make sure you're honest about it when you file.

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That's reassuring! Did you have to wait any specific amount of time before filing?

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Nope, filed the Monday after my last day of work. Severance was separate from my regular wages so it didn't interfere.

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The key thing is whether the severance is considered "wages in lieu of notice" or just a severance payment. If your employer is paying you for specific weeks after termination, that's different than a lump sum goodbye payment. You should ask HR how they're classifying it.

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Good point. I'll ask them to clarify exactly how they're structuring the payment.

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This is important - some companies try to make severance look like continued employment to avoid paying into unemployment insurance.

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I'm dealing with something similar right now and it's been a nightmare trying to get through to Washington ESD to ask questions. I've been calling for weeks with no luck. Finally found this service called Claimyr that helped me get through to an actual agent. Check out claimyr.com - they have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works.

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Interesting, I hadn't heard of that. Was it worth it? I'm dreading having to call Washington ESD.

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Totally worth it for me. I was able to get my severance question answered directly instead of guessing. The agent explained exactly how to report it on my weekly claims.

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How does that work exactly? Do they just call for you or something?

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Whatever you do, don't lie about the severance. Washington ESD will find out eventually and then you'll have overpayment issues to deal with.

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Definitely planning to be completely honest. I just want to understand the rules before I make my decision.

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This is so important. I've seen people get in trouble for not reporting severance properly.

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The Washington ESD handbook says severance payments don't usually affect unemployment benefits unless they're paid as salary continuation. But every situation is different so you might want to call and ask specifically about your case.

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That's what I'm afraid of - spending hours on hold trying to get through to someone who can give me a straight answer.

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That's exactly why I used Claimyr. Saved me so much time and frustration.

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I turned down severance specifically because I was worried about unemployment complications. Now I'm wondering if I made the wrong choice.

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You probably could have taken it if it was a true severance package and not wages in lieu of notice.

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Ugh, that's what I was afraid of. Live and learn I guess.

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My understanding is that it only matters if the severance is structured as payment for a specific period of time. Like if they say 'here's 8 weeks pay to cover you through March' that's different than 'here's a lump sum goodbye payment.

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That makes sense. I need to get the exact language they're using in the severance agreement.

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Exactly right. The language and structure matters a lot for how Washington ESD will treat it.

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Take the severance! You earned it and it won't stop you from getting unemployment as long as you report it properly.

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I'm leaning that way. The extra money would definitely help while I'm job searching.

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Just to follow up on my earlier comment - when I filed my initial claim, there was a specific question about severance payments. I answered honestly and there were no issues. My benefits started the week after my last day of work.

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Perfect, that's exactly what I was hoping to hear. Thanks for the follow-up!

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Same experience here. Reported my severance and it didn't affect my claim at all.

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The main thing is just being upfront about it. Washington ESD would rather you tell them than try to hide it and cause problems later.

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Absolutely. I'd rather be safe than sorry.

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Has anyone here actually had their benefits delayed because of severance? I keep hearing it's not an issue but I'm still nervous.

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I haven't personally, but I've heard of cases where people had issues because they didn't understand how their severance was structured.

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The key is understanding exactly what your employer is giving you and how they're categorizing it.

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One more thing to consider - if you're getting COBRA continuation, that's completely separate from severance and won't affect your unemployment benefits at all.

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Good to know. They are offering COBRA as part of the package.

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I'm in a similar situation but my severance would be paid out monthly over 6 months. That's probably going to affect my unemployment, right?

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That sounds more like salary continuation, which could affect your weekly claims during those months.

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You'd need to report those monthly payments when you file your weekly claims. Washington ESD will determine how it affects your benefits.

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Whatever you decide, make sure you get the severance agreement in writing with all the details about payment structure and timing.

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Definitely. I want everything documented before I make my decision.

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Update on the Claimyr thing - I used them again this week to check on my claim status and it worked great again. Really recommend it if you need to talk to Washington ESD about anything complicated like severance reporting.

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I might have to try that. I've been trying to get through to ask about my job search requirements and it's impossible.

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Yeah, it's worth it just for the peace of mind of talking to an actual person.

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From everything I've read here, it sounds like taking severance is usually fine as long as you're honest about it. I think I'd take it in your situation.

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That's what I'm thinking too. The consensus seems to be that it's not a problem if handled properly.

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Just make sure you understand the difference between severance and vacation payout too. Those are handled differently.

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Good point. I'll make sure I understand exactly what each payment represents.

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The bottom line is that Washington ESD wants to help people who are legitimately unemployed. If you're out of work and looking for a job, severance shouldn't prevent you from getting benefits.

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That's reassuring. Thanks everyone for all the helpful advice!

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Good luck with whatever you decide!

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One last thought - if you do take the severance and file for unemployment, keep copies of all your paperwork. You never know when you might need to reference it later.

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Great advice. I'll definitely keep everything organized and documented.

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