Back to Washington Unemployment

Hunter Brighton

Can I get Washington ESD unemployment if I receive severance pay?

I'm getting laid off next month and my company is offering me a severance package of about $8,000. I'm wondering if this will affect my ability to file for unemployment benefits with Washington ESD? I've heard conflicting information - some people say severance disqualifies you completely, others say it just delays when you can start collecting. Does anyone know the actual rules for Washington state? I really need the unemployment income to bridge the gap while I look for work.

Severance pay in Washington state doesn't automatically disqualify you from unemployment benefits, but it can affect the timing of when you start receiving payments. The key factor is whether the severance is considered 'wages in lieu of notice.' If your employer is paying you severance that covers specific weeks (like 4 weeks of pay), those weeks would be considered as if you're still employed.

0 coins

Thanks for clarifying! So if my severance is just a lump sum and not tied to specific weeks, I should be able to file right away?

0 coins

Exactly. If it's just a lump sum payment not designated as wages for specific periods, you can typically file your claim immediately after your last day of work.

0 coins

I went through this exact situation last year. Had a $6,500 severance and was worried about the same thing. Washington ESD approved my claim but I had to report the severance on my initial application. The key is being honest about it upfront.

0 coins

Did they reduce your weekly benefit amount because of the severance?

0 coins

No, my weekly benefit amount stayed the same. The severance was just reported as income but didn't affect my UI calculations since it wasn't ongoing wages.

0 coins

Actually had a nightmare trying to get through to Washington ESD about this exact question when I got laid off. Spent hours calling and kept getting disconnected. Finally found this service called Claimyr that actually got me connected to a real person at ESD within minutes. They have a website at claimyr.com and there's even a demo video showing how it works (https://youtu.be/7DieNd3C7zQ). Saved me so much frustration trying to get answers about how my severance would affect my claim.

0 coins

How much does something like that cost? I'm already stressed about money with the layoff coming.

0 coins

It was totally worth it for me. The peace of mind knowing I could actually talk to someone at ESD about my specific situation made all the difference.

0 coins

I've heard of Claimyr but wasn't sure if it was legit. Good to know it actually works!

0 coins

The Washington ESD website has specific information about severance pay. You need to report it when you file your initial claim, but whether it affects your benefits depends on how it's structured. If it's payment for unused vacation time or a general severance not tied to specific work periods, it usually won't delay your benefits.

0 coins

I'll definitely check the ESD website. Do you know if there's a specific section about severance?

0 coins

Look under the 'Eligibility' section - there's a subsection about other income that covers severance pay scenarios.

0 coins

ugh the washington unemployment system is so confusing!! why cant they just give straight answers about this stuff

0 coins

I know it's frustrating, but the rules are actually pretty clear once you understand the different types of severance payments and how they're classified.

0 coins

maybe for you but ive been trying to figure this out for weeks and keep getting different answers

0 coins

Had a friend who got severance and still collected unemployment. The important thing is making sure you report everything accurately on your application. Washington ESD will figure out if it affects your benefits or not.

0 coins

That's reassuring. I just want to make sure I don't mess anything up on the application.

0 coins

One more important point - if your severance includes payment for unused vacation or sick leave, that's handled differently than regular severance. Vacation pay might be considered wages for specific periods, while general severance typically isn't. Make sure you understand exactly what your severance package includes.

0 coins

Mine includes about $2,000 for unused vacation days. Does that change things?

0 coins

That portion might be considered wages in lieu of notice since it represents specific days you would have worked. You'll want to clarify this when you file your claim.

0 coins

This is exactly why I used Claimyr when I had questions about my vacation payout. Got connected to an ESD rep who explained exactly how to report it on my weekly claims.

0 coins

Just file your claim and be honest about the severance. Washington ESD will make the determination based on your specific situation. Don't overthink it - they deal with this all the time.

0 coins

You're right, I'm probably overthinking this. I'll just file and report everything accurately.

0 coins

The timing of when you receive the severance can also matter. If you get it all at once after your last day, it's different than if they spread it out over several weeks. Washington ESD looks at whether the payment is meant to cover specific work periods.

0 coins

Mine is being paid as a lump sum two weeks after my last day of work.

0 coins

That sounds like it shouldn't delay your benefits then, since it's not tied to specific weeks of work.

0 coins

I'm in HR and deal with this question a lot. The key is how the severance is documented in your separation paperwork. If it says 'payment in lieu of notice' or covers specific weeks, it will delay benefits. If it's just called 'severance pay' or 'separation pay' without specifying work periods, you should be fine.

0 coins

That's really helpful insight from the HR perspective. I'll check exactly how it's worded in my paperwork.

0 coins

This is such good advice. The wording in the separation documents makes all the difference for Washington ESD determinations.

0 coins

whatever you do dont lie about it on your claim! my cousin tried to hide his severance and they found out later and he had to pay everything back plus penalties

0 coins

Definitely won't lie about it. Not worth the risk of having to pay everything back.

0 coins

Absolutely right. Washington ESD will eventually find out about unreported income, and the consequences are severe.

0 coins

The good news is that even if your severance does delay your benefits for a few weeks, your claim will still be valid and you'll start receiving payments once the severance period is over. You don't lose the benefits entirely.

0 coins

That's reassuring. I was worried I might lose the benefits completely.

0 coins

When I got laid off with severance, I called Washington ESD directly but could never get through. Finally used Claimyr to get connected and the agent walked me through exactly how to report my severance package. Made the whole process so much clearer than trying to figure it out from the website alone.

0 coins

That sounds like it would have saved me a lot of stress. Might be worth looking into.

0 coins

I keep hearing good things about Claimyr. Seems like a lot of people have success getting through to ESD with it.

0 coins

Bottom line - you can definitely get unemployment with severance pay in Washington. The severance might affect the timing of when benefits start, but it won't disqualify you completely. Just be upfront about it when you file.

0 coins

Thanks everyone for all the helpful responses. Feeling much more confident about filing my claim now.

0 coins

One last tip - when you do your weekly claims, you'll need to report any severance payments in the week you actually receive them, not when you earned them. So if you get a lump sum in week 3 after filing, report it on that week's claim.

0 coins

Good to know about the weekly reporting. I'll make sure to report it in the right week.

0 coins

Exactly right. The timing of when you receive the payment is what matters for weekly claim reporting.

0 coins

Washington Unemployment AI

Expert Assistant
Secure