Can I file for Washington ESD unemployment if I get severance pay?
My company is laying me off next month and they're offering a severance package that would pay me about 12 weeks of my regular salary. I'm wondering if I can still file for unemployment benefits with Washington ESD while receiving this severance money? The HR person wasn't very clear about how this affects my eligibility. Has anyone dealt with this situation before? I really need to know if I should expect to wait until the severance runs out before I can collect UI benefits.
62 comments


Jacinda Yu
The short answer is yes, you can file for unemployment, but the severance will likely affect your weekly benefit amount and timing. Washington ESD treats severance as deductible income, which means it gets subtracted from your weekly UI payment. You should definitely file your claim right away though, don't wait until the severance ends.
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Brian Downey
•So I should file immediately even if I won't get any money for the first few months?
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Jacinda Yu
•Exactly. Filing establishes your claim date and starts your benefit year. If you wait, you could lose out on weeks of potential benefits later.
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Landon Flounder
I went through this exact situation last year. Washington ESD will ask you to report the total severance amount and when you received it. They calculate how many weeks it represents based on your regular wages, then you can't collect UI for that period. But definitely file the claim - the waiting period for severance is different from a disqualification.
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Brian Downey
•Did you have to provide documentation about the severance to Washington ESD?
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Landon Flounder
•Yes, I had to upload my severance agreement and pay stubs showing the amount. They were pretty thorough about verifying it.
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Callum Savage
•This is really helpful info. I'm in a similar boat and wasn't sure about the documentation requirements.
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Ally Tailer
Whatever you do, don't try to hide the severance from Washington ESD. They will find out eventually and then you'll have overpayment issues to deal with. I've seen people get into serious trouble for not reporting severance properly. Be upfront about everything when you file your weekly claims.
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Brian Downey
•That's good advice. I definitely don't want to create problems for myself down the road.
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Aliyah Debovski
•How would they find out if someone didn't report it? Just curious about their verification process.
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Ally Tailer
•They cross-reference with employer reports and tax records. Plus if you get audited later, the IRS data will show the severance income. Not worth the risk.
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Miranda Singer
I struggled with getting through to Washington ESD when I had questions about my severance situation. The phone lines are always busy and I kept getting disconnected. Finally found this service called Claimyr that helped me get connected to an actual agent. They have a website at claimyr.com and there's even a demo video showing how it works: https://youtu.be/7DieNd3C7zQ. Saved me hours of calling.
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Brian Downey
•How does that work exactly? Do they just call for you or what?
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Miranda Singer
•They basically handle the calling and waiting, then connect you when they get an agent on the line. Way better than sitting on hold for hours.
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Cass Green
•I've heard of that service but haven't tried it yet. Might be worth it given how impossible it is to reach Washington ESD lately.
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Callum Savage
The timing of your severance matters too. If you get it all in one lump sum versus spread out over several months, Washington ESD calculates the impact differently. Make sure you understand exactly how your company is structuring the payout before you file your claim.
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Brian Downey
•Mine is supposed to be paid out over 12 weeks. Does that make it better or worse for UI eligibility?
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Callum Savage
•Usually spread out payments are easier to work with because Washington ESD can calculate the weekly impact more clearly. But you still need to report it properly each week.
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Aliyah Debovski
ugh this is so confusing. why does everything with unemployment have to be so complicated? i got severance when i was laid off but nobody explained any of this stuff to me. now im worried i messed something up
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Jacinda Yu
•If you're worried you made an error, you can always contact Washington ESD to clarify your situation. It's better to fix issues early than deal with overpayments later.
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Aliyah Debovski
•yeah but good luck getting through to them on the phone. i've been trying for weeks
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Miranda Singer
•That's exactly why I mentioned Claimyr earlier. Sometimes you need help just getting connected to discuss these complex situations.
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Cass Green
Don't forget that you still have to meet all the other UI requirements even while dealing with severance. You need to be actively looking for work, available for work, and file your weekly claims on time. The severance doesn't excuse you from those obligations.
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Brian Downey
•So I need to start job searching immediately even though I won't get UI payments for a while?
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Cass Green
•Yes, exactly. Washington ESD requires job search activities from week one, regardless of whether you're receiving payments.
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Finley Garrett
•This is really important. I know someone who got disqualified for not job searching during their severance period.
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Finley Garrett
I had a friend who negotiated with their employer to delay the severance payment so they could collect UI first. Not sure if that's always possible but might be worth asking about if you have any leverage in the negotiation.
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Brian Downey
•Interesting idea, but I think my severance terms are already set. The layoff is happening company-wide so probably no flexibility.
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Ally Tailer
•Be careful with strategies like that. Washington ESD looks at when severance was earned, not just when it's paid. Could still count against your benefits.
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Madison Tipne
Make sure you keep detailed records of everything - your severance agreement, pay stubs, any communication with your employer about the terms. You'll need this documentation for Washington ESD and it's also good to have for your own records in case questions come up later.
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Brian Downey
•Good point about keeping records. I'll make sure to save copies of everything.
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Holly Lascelles
•I learned this the hard way. Lost some paperwork and had to jump through hoops to get duplicates from my old employer.
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Holly Lascelles
One thing that caught me off guard was that Washington ESD counts gross severance, not net. So if you get $10,000 in severance but only take home $7,000 after taxes, they still use the full $10,000 for their calculations.
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Brian Downey
•Wow, I hadn't thought about that. That could make a big difference in how long I have to wait.
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Jacinda Yu
•That's correct. They use the gross amount because that's what's considered your actual wages for benefit calculation purposes.
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Malia Ponder
Has anyone dealt with vacation pay in addition to severance? My employer is paying out my unused vacation time too and I'm wondering if that creates additional complications with Washington ESD.
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Landon Flounder
•Vacation payout is treated separately from severance. It's usually considered wages for the period it covers, so it could also affect your UI timing.
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Malia Ponder
•Great, so potentially even more waiting time before I can collect benefits. This system is so frustrating.
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Kyle Wallace
•I know it seems overwhelming but at least you're getting some income while you look for a new job. Better than nothing!
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Kyle Wallace
The key thing is to be completely honest and upfront with Washington ESD about your severance situation. Don't try to game the system or hide anything. File your claim, report everything accurately, and follow their guidelines. It might delay your benefits but it keeps you out of trouble long-term.
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Brian Downey
•That's definitely my plan. Better to do it right from the start than deal with problems later.
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Ryder Ross
•Exactly the right attitude. I've seen too many people try to cut corners and end up in worse situations.
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Ryder Ross
If you're unsure about any part of the process, don't hesitate to reach out for help. Whether that's calling Washington ESD directly, using a service like Claimyr to get through, or even consulting with an employment attorney if the severance package is complex. Getting expert advice upfront can save you headaches later.
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Brian Downey
•Thanks for all the advice everyone. I feel much more prepared to handle this situation now.
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Gianni Serpent
•Good luck with everything! The unemployment system is confusing but at least you're asking the right questions early.
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Gianni Serpent
Just want to add that even though you might not get UI payments right away due to the severance, filing your claim starts the clock on your benefit year. So don't delay - get that application in as soon as you're laid off.
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Brian Downey
•Will definitely file right away. Thanks for emphasizing that point.
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Henry Delgado
•This whole thread has been super helpful. I'm bookmarking it in case I need to reference it later.
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Henry Delgado
Does anyone know if there are different rules for different types of severance? Like if it's based on years of service versus a flat amount? My severance is calculated as two weeks pay per year of service, so I'm getting quite a bit.
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Jacinda Yu
•The calculation method doesn't matter to Washington ESD - they just care about the total amount and when you receive it. More severance just means a longer waiting period.
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Henry Delgado
•That makes sense. Guess I'll be waiting a while before I see any UI benefits.
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Olivia Kay
I want to second what others have said about using Claimyr if you need to talk to someone at Washington ESD about your specific severance situation. I used them when I had questions about how my employer stock options would affect my claim. Much easier than trying to get through on your own.
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Joshua Hellan
•Did they charge a lot for the service? I'm already dealing with reduced income so trying to be careful about extra expenses.
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Olivia Kay
•It was worth it for me given how much time it saved, but you can always try calling Washington ESD directly first.
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Joshua Hellan
This thread is making me realize I should probably talk to a tax professional too. Severance and unemployment benefits both have tax implications and I want to make sure I'm handling everything correctly for next year's filing.
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Kyle Wallace
•Good thinking. Both severance and UI are taxable income, so definitely worth planning ahead for tax season.
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Brian Downey
•Another thing I hadn't considered. Thanks for bringing that up.
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Jibriel Kohn
The most important thing is to file your claim right away and be completely honest about your severance. Washington ESD has heard it all before and they have clear policies for handling these situations. Don't stress too much about it - just follow their guidelines and you'll be fine.
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Brian Downey
•Thanks everyone for all the helpful advice. I feel much more confident about handling this now.
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Edison Estevez
•Great discussion thread. Really helpful information for anyone dealing with severance and unemployment.
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Edison Estevez
One last tip - make sure you understand your employer's policy on references and rehiring before you finalize your severance agreement. Some companies have restrictions that could affect your job search, and Washington ESD requires active job searching even during your severance waiting period.
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Brian Downey
•Good point about the reference policy. I'll make sure to clarify that with HR before I sign anything.
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