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Nathaniel Mikhaylov

Can I collect Washington ESD unemployment if I received a severance package from my employer?

My company laid me off last week and I received a severance package worth about $8,500 (equivalent to 6 weeks of my regular pay). I'm wondering if this affects my ability to file for unemployment benefits through Washington ESD? The severance is being paid as a lump sum, not spread out over time. I really need to know if I should file my claim right away or if I need to wait until after the severance period would have ended. Has anyone dealt with this situation before?

You can absolutely file for unemployment even with severance! The key thing is HOW the severance is being paid. Since yours is a lump sum, Washington ESD typically won't delay your benefits. If it was being paid out weekly like regular wages, that would be different.

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That's a relief! So I should go ahead and file my claim on the Washington ESD website right away?

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Yes, file as soon as possible. There's a waiting week anyway, so don't delay. Make sure to report the severance amount when they ask about separation pay.

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I got severance too when I was laid off in March. Washington ESD asked about it during the initial claim but it didn't stop my benefits. They just wanted to know the total amount and how it was paid.

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Did they ask for any documentation about the severance package?

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Not initially, but I kept all my paperwork just in case. They might ask for it if your claim goes into adjudication.

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Be careful about calling Washington ESD if you have questions - their phone lines are absolutely swamped. I've been trying to reach them for weeks about my own claim issue. If you need to talk to someone, I recently discovered Claimyr (claimyr.com) which helps you actually get through to Washington ESD agents. They have this video demo that shows how it works: https://youtu.be/7DieNd3C7zQ. Might be worth checking out if you run into problems.

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Never heard of that service but honestly anything is better than sitting on hold for hours just to get disconnected.

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Thanks for the tip! Hopefully I won't need it but good to know there are options.

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Wait, I thought severance always delayed unemployment benefits? My friend got severance and couldn't collect for like 2 months.

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It depends on how the severance is structured. If it's paid out over time like regular wages, then yes it can delay benefits. But lump sum severance typically doesn't.

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Oh that makes sense. Her severance was paid out bi-weekly for 3 months, so that's probably why.

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File immediately! I made the mistake of waiting when I got severance and it just delayed everything unnecessarily. Washington ESD will sort out the details, but you want to get your claim date established as early as possible.

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Good point about getting the claim date established. I'll file this weekend for sure.

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The Washington ESD website has a whole section about this under 'Reporting Work and Earnings' - they specifically mention severance pay. From what I remember, lump sum severance doesn't count as wages for benefit purposes.

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I'll definitely check that section out. Thanks for pointing me in the right direction!

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Exactly right. It's under the 'Work and Earnings' section and they explain the difference between wages and severance clearly.

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ugh the whole system is so confusing. I got a small severance when I was let go and spent weeks worrying about whether I reported it correctly on my weekly claims.

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I totally get the anxiety! The forms aren't super clear about these things.

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Right? And then if you make a mistake they act like you tried to commit fraud or something.

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One thing to watch out for - if your employer contests your unemployment claim, having received severance might actually work in your favor since it shows the layoff was legitimate and not for cause.

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That's a good point I hadn't considered. My layoff was definitely due to budget cuts, not performance.

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I'm dealing with something similar but my severance is being paid out monthly. Still trying to figure out if I can file or need to wait until it's done.

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If it's being paid monthly like wages, you'll probably need to report it on your weekly claims and it might reduce your benefits during those weeks.

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That's what I was afraid of. Might be worth calling Washington ESD to clarify, if I can ever get through.

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That's exactly when Claimyr would be helpful - for situations like this where you really need to talk to someone at Washington ESD to get a clear answer.

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File now! The worst case scenario is they ask for more information later. Better to get the process started than to miss out on weeks of benefits because you waited.

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You're absolutely right. I'm going to file my claim tonight. Thanks everyone for the advice!

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Make sure you keep all your severance documentation - the letter from HR, your final paystub showing the severance amount, everything. Washington ESD might not ask for it now but if there's any issue with your claim later, you'll want to have it all ready.

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Good thinking. I'll scan everything and keep digital copies too.

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Smart! Digital copies are so much easier when you need to upload documents to their system.

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Does anyone know if vacation pay affects unemployment the same way as severance? I got both when I was laid off.

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Vacation pay is usually treated differently - it might delay benefits depending on how much you received and over what period it represents.

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Ugh, this is getting complicated. Maybe I should try to call Washington ESD after all.

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The timing of when you file really matters too. Even if there's some delay because of the severance, you want your benefit year established as soon as possible after your last day of work.

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That makes sense. My last day was exactly a week ago, so I should be fine timing-wise.

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I had to deal with this exact situation last year. Filed right away, reported the severance amount, and had no issues. Washington ESD was actually pretty straightforward about it.

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That's reassuring to hear from someone who actually went through it. Thanks!

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No problem! The key is just being honest and upfront about everything when you file.

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One more thing - when you do your weekly claims, there's a specific question about severance/separation pay. Make sure you answer it accurately each week, even if the amount is zero after the first week.

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Good to know! I'll pay close attention to that question on the weekly claims.

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honestly the washington esd system is pretty good about handling severance compared to other states. just file and let them sort it out

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That's what I'm hearing from everyone. Definitely filing tonight!

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My company is doing layoffs next month and I might be affected. This whole thread has been super helpful for understanding how severance works with unemployment. Thanks for asking the question!

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Sorry to hear about the potential layoffs. Hope this info helps if you end up needing it.

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Good luck with everything! At least you'll be prepared if it happens.

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Just wanted to add - if you do run into any complications with your claim or need clarification on how the severance affects your benefits, that's another situation where Claimyr really comes in handy. Much easier than trying to get through on the phone yourself.

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I'm definitely bookmarking that site. The Washington ESD phone system is brutal.

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Update us on how it goes when you file! Always helpful to hear how these situations actually play out.

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Will do! I'll post an update once I get through the initial filing process.

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The fact that your severance is lump sum really does make things simpler. My brother's company paid his out over 4 months and it was a nightmare to figure out the reporting.

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Yeah, I'm definitely grateful it's just one payment. Makes everything cleaner.

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Exactly. One less thing to worry about during an already stressful time.

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Good luck with everything! Sounds like you've got a solid plan. File the claim, report the severance honestly, and keep your documentation handy. You should be all set.

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Thanks so much everyone! This thread has been incredibly helpful. Going to file right now.

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Awesome! Feel free to come back if you have any other questions during the process.

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I went through this exact same situation about 8 months ago - got laid off with a $12k lump sum severance. I was so nervous about messing up my unemployment claim, but it ended up being much smoother than I expected. Filed my claim the Monday after my last day of work, reported the severance amount when prompted, and my benefits started after the standard waiting week. Washington ESD didn't give me any hassle about it at all. The key really is that it's a lump sum payment rather than ongoing payments. Just make sure you're completely honest about the amount and date you received it. You've got this!

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