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Mia Roberts

Can I collect Washington ESD unemployment if I receive a severance package?

Just got laid off from my tech job in Seattle and they're offering me a severance package worth about 8 weeks of pay. I really need to know if I can still file for unemployment benefits with Washington ESD while receiving this severance? The HR person wasn't very clear about how it affects my eligibility. I've never been unemployed before so I'm not sure how this works. Should I wait until the severance runs out to apply or can I file right away?

You can absolutely file for unemployment even with a severance package in Washington. The key thing 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 weekly like regular wages, then it might reduce your weekly benefit amount during those weeks.

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It's being paid as a lump sum in two weeks. So I should go ahead and file my initial claim now?

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Yes, file as soon as possible. Your benefit year starts when you file, not when you're eligible to collect. Just make sure to report the severance accurately on your application.

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i got severance last year and still collected unemployment no problem. washington esd doesnt count lump sum severance as wages so it wont affect your weekly benefit amount. just be honest about it when you file

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Really? I thought ANY severance would disqualify you. This is good to know!

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nope thats a common misconception. only if its paid out like regular wages week by week would it potentially reduce benefits

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I've been dealing with Washington ESD for months and here's what I learned about severance: Lump sum payments don't count as wages for the weeks you're claiming benefits. However, if your employer is paying you severance for specific weeks (like continuation of salary), those weeks might be considered 'wages' and could affect your claim. The important thing is to file immediately and report everything accurately.

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Thanks for the detailed explanation. Mine is definitely a lump sum so sounds like I'm good to file right away.

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This is exactly right. I work in HR and we always tell laid off employees that lump sum severance won't affect their UI benefits timing.

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Just went through this exact situation last month. Had trouble getting through to Washington ESD to verify my severance situation, kept getting busy signals for weeks. Finally used this service called Claimyr (claimyr.com) that helped me get connected to an actual agent. They have a video demo at https://youtu.be/7DieNd3C7zQ showing how it works. The agent confirmed that my lump sum severance wouldn't affect my weekly benefits at all.

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How does Claimyr work exactly? I'm worried I might need to talk to someone at Washington ESD to clarify my specific situation.

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It basically helps you get through their phone system automatically. You give them your info and they call you back when they've got an agent on the line. Saved me hours of calling and getting hung up on.

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SEVERANCE PACKAGES ARE A SCAM! They offer you these packages to make you think you're getting a good deal but then you find out it might mess up your unemployment. At least that's what I thought until I actually researched it. Turns out Washington state is pretty reasonable about lump sum severance not affecting benefits.

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Washington ESD is actually one of the more worker-friendly states when it comes to severance and unemployment. Many states have much stricter rules.

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Yeah I was pleasantly surprised when I found that out. Still think employers use severance to manipulate people though.

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Wait, I'm confused. If I get 12 weeks of severance pay, does that mean I can't collect unemployment for 12 weeks? Or is it only if they pay it out weekly instead of as a lump sum? This is so confusing!

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It depends entirely on HOW it's paid. If you get $12,000 as one payment, it's a lump sum and won't affect your weekly claims. If you get $1,000 per week for 12 weeks, those are considered wages and would likely make you ineligible those weeks.

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Ah okay that makes sense. Mine is definitely a lump sum so I should be fine. Thanks for clarifying!

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also make sure you file your weekly claims even if you think you might not qualify. better to file and have them tell you no than to miss out on benefits you're entitled to

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Good point. I'll definitely file my initial claim this week and then keep up with the weekly claims.

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I got severance when I was laid off from Boeing and collected unemployment the whole time. Washington ESD didn't reduce my benefits at all because it was a lump sum payment. Just be prepared for a lot of paperwork and questions about your employment history.

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How long did it take for your claim to get approved? I'm worried about delays.

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Mine took about 3 weeks to get approved. Had to go through adjudication because of the severance but once they reviewed it everything was fine.

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One thing to watch out for - make sure your employer doesn't structure the severance as 'pay in lieu of notice' for specific weeks. That could complicate things. If it's truly a lump sum separation payment, you should be clear to collect unemployment immediately.

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I'll double check my severance agreement to make sure it's not structured that way. Thanks for the heads up.

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Just a heads up - even though lump sum severance doesn't affect your weekly benefit amount, you still need to report it on your initial application. Washington ESD needs to know about all payments you received from your employer.

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Definitely planning to report everything accurately. Don't want any issues down the road.

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I'm in a similar situation but my severance is being paid out over 6 months. Does anyone know if that would affect my unemployment benefits differently than a lump sum?

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If it's being paid out weekly or monthly like regular wages, it could potentially reduce your weekly benefit amount during those payment periods. You'd need to report those payments on your weekly claims.

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This is exactly the kind of situation where calling Washington ESD directly would help. I'd recommend using Claimyr to get through - much easier than trying to call yourself.

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Does anyone know if vacation payout affects unemployment the same way as severance? Got both when I was laid off last month.

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Vacation payout is typically treated the same as lump sum severance - it shouldn't affect your weekly benefits if paid as a lump sum.

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Perfect, thanks! Both were lump sum payments so sounds like I'm good to file.

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honestly the washington esd website has pretty good info about severance if you dig around. but talking to an actual person is always better if you have specific questions

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I looked at their website but it's pretty confusing. Might be worth calling them just to be sure.

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Filed my claim while receiving severance and it went through fine. The key is being upfront about everything. Don't try to hide the severance - Washington ESD will find out anyway and it's better to be honest from the start.

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Absolutely planning to be completely honest. Not worth the risk of getting in trouble later.

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This thread has been super helpful! I was worried my severance would disqualify me from unemployment but sounds like I should be fine as long as it's a lump sum.

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Glad we could help clear things up! The severance/unemployment rules are confusing but Washington is generally pretty fair about it.

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Anyone know if there's a maximum amount of severance that would affect unemployment eligibility? I'm getting a pretty substantial package.

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The amount doesn't matter as much as how it's paid. Lump sum is lump sum regardless of the dollar amount.

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That's a relief. Was worried a large severance might cause issues.

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Pro tip: keep all your severance paperwork organized. Washington ESD might ask for documentation during the application process or later if your claim goes to adjudication.

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Good advice! I'll make sure to keep copies of everything from my employer.

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Update on my earlier comment about Claimyr - they helped me get through to Washington ESD again this week to ask about vacation pay and severance tax implications. Really worth it if you need to talk to an actual person instead of guessing about your situation.

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How much does that service cost? Seems like it might be worth it if it saves hours of calling.

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I think it's worth it just for the time saved. Check out their site for details. The peace of mind knowing I talked to a real agent was valuable.

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Been collecting unemployment for 8 weeks now while my severance sits in savings. No issues at all with Washington ESD. They asked about it during my initial interview but once I explained it was a lump sum they moved on.

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That's exactly what I needed to hear. Planning to file this weekend.

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Good luck! The process isn't as scary as it seems once you get started.

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Make sure you understand your non-compete and severance agreement before filing. Some agreements have clauses about collecting unemployment that you need to be aware of.

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I'll definitely review my agreement carefully. Don't want any legal issues.

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Good point, though non-compete clauses can't legally prevent you from collecting unemployment benefits you're entitled to.

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