Can I collect Washington ESD unemployment while getting severance pay?
Just got laid off from my tech job after 6 years and they're giving me 8 weeks of severance pay. I want to file for unemployment right away but I'm not sure if Washington ESD will let me collect benefits while I'm still getting severance payments. The severance works out to about $1,200 per week which is less than what I was making. Has anyone dealt with this situation before? Do I need to wait until my severance runs out to apply for UI benefits?
54 comments
Join the conversation
Omar Fawaz
You can file your claim right away but Washington ESD will likely reduce your weekly benefit amount based on the severance. They consider severance as income during the weeks you receive it. The reduction isn't dollar for dollar though - there's a formula they use.
0 coins
Freya Thomsen
•That's good to know! Do you happen to know what the formula is? I'm trying to figure out if it's even worth filing now or if I should just wait.
0 coins
Omar Fawaz
•I think they subtract 75% of your severance from your weekly benefit amount, but don't quote me on that. You should definitely call Washington ESD to get the exact calculation.
0 coins
Chloe Martin
File immediately! Even if your benefits are reduced, you want to get your claim established. Plus there's a waiting week anyway so you might as well get that out of the way. I made the mistake of waiting when I got severance and it just delayed everything.
0 coins
Freya Thomsen
•Good point about the waiting week. I hadn't thought about that. Did you have any trouble explaining the severance situation to Washington ESD?
0 coins
Chloe Martin
•Not really, they ask about it on the weekly claim form. Just be honest about the amounts and dates. They'll figure out the calculations on their end.
0 coins
Diego Rojas
Here's what you need to know about severance and unemployment in Washington: Severance pay is considered wages and will affect your weekly benefit amount. Washington ESD uses a specific formula where they reduce your UI benefits by 75% of your severance amount for that week. So if you get $1,200 in severance and your UI would normally be $600, you'd get $600 minus (75% of $1,200) which would be $0 that week since the reduction is more than your benefit amount.
0 coins
Freya Thomsen
•Wow, so I basically won't get any UI benefits during the 8 weeks I'm getting severance? That seems harsh.
0 coins
Diego Rojas
•It depends on your benefit amount. If your weekly UI benefit is higher than 75% of your severance, you'd still get something. But yeah, the reduction can be substantial. Still worth filing though to get your claim started.
0 coins
Anastasia Sokolov
•This is exactly why I hate the unemployment system. You get laid off through no fault of your own and they penalize you for getting severance. Makes no sense.
0 coins
StarSeeker
I was in a similar situation last year and had such a hard time getting through to someone at Washington ESD to explain how the severance would affect my claim. Spent hours on hold just to get disconnected. Finally used this service called Claimyr (claimyr.com) that actually got me connected to an agent in like 15 minutes. They have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works. Totally worth it when you need answers about complex stuff like severance calculations.
0 coins
Freya Thomsen
•Never heard of Claimyr before. Did they actually help you understand the severance situation or just get you connected?
0 coins
StarSeeker
•They just help you get through to a real person at Washington ESD. But that's exactly what I needed because the agents could walk me through the exact calculations based on my specific severance amount and benefit level.
0 coins
Sean O'Donnell
•Interesting, I might have to check that out. I've been trying to reach someone about my adjudication for weeks.
0 coins
Zara Ahmed
wait so if i get severance i can't get unemployment at all??? that doesn't seem right
0 coins
Diego Rojas
•You can still get unemployment, but your weekly benefit amount gets reduced based on how much severance you receive each week. It's not an all-or-nothing situation.
0 coins
Zara Ahmed
•oh ok that makes more sense. i was worried i wouldn't get anything
0 coins
Omar Fawaz
One thing to keep in mind is that you need to report your severance accurately on your weekly claims. Washington ESD will eventually find out about it anyway when they do their quarterly wage checks with employers, so don't try to hide it. That'll just cause problems later.
0 coins
Freya Thomsen
•Definitely planning to be completely honest about it. The last thing I want is to deal with an overpayment situation down the road.
0 coins
Luca Esposito
•Smart move. I know someone who didn't report their severance properly and had to pay back like $3,000 in benefits plus penalties.
0 coins
Anastasia Sokolov
The whole system is screwed up if you ask me. You lose your job, company gives you some money to help transition, and then the state punishes you for it by reducing your benefits. Meanwhile people who quit their jobs or get fired for cause can sometimes still collect. WHERE'S THE LOGIC???
0 coins
Diego Rojas
•I understand the frustration, but the logic is that severance is considered income replacement, similar to wages. The system is designed to prevent people from getting both full severance and full unemployment benefits at the same time.
0 coins
Anastasia Sokolov
•Still doesn't make sense to me. If I worked for 6 years and paid into the system, I should be able to collect when I get laid off regardless of severance.
0 coins
Chloe Martin
Just remember that once your severance period ends, you should be eligible for full benefits (assuming you meet all the other requirements). So even if you don't get much or anything during those 8 weeks, you'll still have benefits available after that.
0 coins
Freya Thomsen
•That's reassuring. I'm hoping to find something before then, but it's nice to know the benefits will be there if I need them.
0 coins
Nia Thompson
This thread is super helpful! I'm potentially facing a layoff myself and wondering about the severance situation. OP, are you going to file right away or wait?
0 coins
Freya Thomsen
•Based on the advice here, I think I'm going to file right away. Even if I don't get much during the severance period, at least I'll have the claim established and can start the waiting week.
0 coins
Nia Thompson
•Makes sense. Keep us posted on how it goes!
0 coins
StarSeeker
One more thing about Claimyr - I found it really helpful because the Washington ESD agents could tell me exactly when my severance period would end and when I'd be eligible for full benefits. Having that timeline was super useful for planning my job search.
0 coins
Mateo Rodriguez
•Did you have to pay much for that service? Seems like it could be worth it if you're dealing with a complex situation.
0 coins
StarSeeker
•I'd rather not get into pricing details, but for me it was definitely worth it to avoid the frustration of trying to call Washington ESD repeatedly. The peace of mind was valuable.
0 coins
GalaxyGuardian
I'm an HR person and deal with this question a lot. The key thing employees need to understand is that severance timing matters. If you get a lump sum vs. weekly payments, it can affect how Washington ESD calculates the impact on your benefits.
0 coins
Freya Thomsen
•Mine is weekly payments over 8 weeks. Does that make a difference compared to getting it all at once?
0 coins
GalaxyGuardian
•Weekly payments are generally better for unemployment purposes because the reduction is spread out over the severance period. With a lump sum, Washington ESD might allocate it over a longer period which could affect more weeks of benefits.
0 coins
Aisha Abdullah
Just went through this exact situation 3 months ago. Filed immediately, got reduced benefits during severance period, then full benefits after. The key is being patient and following the process. Washington ESD isn't perfect but they'll work with you if you're honest about everything.
0 coins
Freya Thomsen
•How long did it take for your claim to get approved? I'm worried about delays.
0 coins
Aisha Abdullah
•About 2 weeks for the initial approval, then another week to sort out the severance calculation. Nothing too crazy, but definitely file as soon as you can.
0 coins
Ethan Wilson
man this is confusing. i thought unemployment was supposed to help when you lose your job but sounds like there's all these rules and reductions
0 coins
Diego Rojas
•It can be confusing, but the system is designed to provide a safety net while preventing people from getting more money than they were earning while working. The rules make more sense when you understand the underlying principles.
0 coins
Ethan Wilson
•i guess that makes sense. still seems complicated though
0 coins
Yuki Tanaka
For what it's worth, I used Claimyr when I had questions about my standby status and it was super helpful. Sometimes you just need to talk to a real person to understand how these complex situations work, and their service makes that possible without the usual hassle.
0 coins
Freya Thomsen
•Seems like a few people have had good experiences with them. I might give it a try if I run into issues with my claim.
0 coins
Carmen Diaz
Quick question - does vacation pay count the same as severance? My company is paying out my unused vacation time along with severance.
0 coins
Diego Rojas
•Vacation payouts are generally treated the same as severance by Washington ESD. They're considered wages and will affect your weekly benefit calculation.
0 coins
Carmen Diaz
•Ugh, so both will reduce my benefits? This is getting expensive.
0 coins
Andre Laurent
I work in payroll and see this situation all the time. My advice is always to file for unemployment immediately regardless of severance. Even if you don't get benefits right away, you're establishing your claim date which can be important later. Plus the job search requirements start immediately, so you might as well get credit for that time.
0 coins
Freya Thomsen
•Good point about the job search requirements. I hadn't thought about that aspect. Better to start the clock ticking on everything.
0 coins
AstroAce
This whole thread has been super educational. I had no idea severance could affect unemployment benefits. Thanks everyone for sharing your experiences!
0 coins
Freya Thomsen
•Same here! I feel much more confident about filing my claim now. This community is really helpful.
0 coins
Zoe Kyriakidou
One last thing to consider - make sure you understand if your severance includes any continuation of benefits. That might affect your eligibility for certain programs while you're unemployed.
0 coins
Freya Thomsen
•Good point. My severance does include health insurance continuation for 2 months. I'll make sure to mention that when I file.
0 coins
Jamal Brown
Been following this thread and just wanted to say good luck to everyone dealing with layoffs. It's a tough situation but sounds like there are resources and people willing to help. Hope everyone lands on their feet soon!
0 coins
Freya Thomsen
•Thanks! Really appreciate all the support and advice from everyone here. Makes a stressful situation feel a bit more manageable.
0 coins
Mei Zhang
•Agreed! This is why I love this community - people actually help each other out instead of just complaining.
0 coins