Can I file for ESD unemployment while receiving 5 weeks of severance pay?

You can file your initial claim right away, but you need to report your severance pay. In Washington state, severance is considered deductible income, so during those 5 weeks, your unemployment benefits will likely be reduced or eliminated depending on how much your severance is compared to your potential benefit amount. The key thing is to be honest about it when you file - there's a specific question about severance on the application.

i was in the same boat last yr. file NOW dont wait. they take forever to process claims anyway so by the time they approve you the severence might be done lol

Definitely file now but make sure you report that severance correctly! My colleague got an overpayment notice because she didn't report severance properly and had to pay back $2,300 plus penalties. The ESD system will ask you about severance when you file initially and then you'll need to report it again during weekly claims for those weeks you're receiving it. They treat severance as wages for the weeks it covers.

Does anyone know if the severence is taxed the same as unemployment benefits? I'm getting confused about how to calculate what I'll actually receive each week when both are happening at the same time... will ESD just automatically reduce my benefits based on what I report or do I need to do something special?

I went through this exactly in 2024. Here's what you need to know: 1. File your initial claim immediately 2. Report your severance amount and the dates it covers 3. File your weekly claims EVERY WEEK even during severance period (super important) 4. Your benefits will likely be zero during severance weeks 5. Once severance ends, your benefits should begin automatically if you've been doing your weekly claims Also worth noting - if you're having trouble reaching ESD to ask questions (which is likely), I used a service called Claimyr that got me through to an actual ESD agent in about 20 minutes instead of spending days trying to get through. Their website is claimyr.com and they have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 Good luck!

Wait but severence isnt the same as wages! I thought it was a "golden parachute" type thing that doesnt effect benefits?? My cousin got laid off and got both full unemployment + severence at the same time last year... maybe the rules changed?

Thanks everyone for the super helpful responses! I'm going to file my initial claim tomorrow and make sure I report the severance correctly. I'll also keep doing the weekly claims even though I probably won't receive anything during the severance period. I appreciate all the advice!

One last tip - make sure you start fulfilling your job search requirements right away, even during the severance period. You need 3 job search activities each week, and you have to document them. ESD can audit your job search log at any time. This is something many people miss and can cause problems with your claim later.