< Back to Washington Unemployment

CosmicCommander

Can I get severance and unemployment benefits at the same time in Washington?

My company is laying me off next month and offering me a severance package worth about $8,000 spread over 8 weeks. I'm wondering if I can still file for Washington ESD unemployment benefits while receiving this severance pay? I've heard conflicting information about whether severance affects your UI eligibility. Has anyone dealt with this situation before? I really need to know before I sign the severance agreement.

Yes, you can receive both but there are some important rules about how Washington ESD handles severance pay. The key thing is whether your severance is considered wages or a lump sum payment. If it's paid out weekly like regular wages, it might affect your weekly benefit amount.

0 coins

It's being paid out weekly over 8 weeks, so does that mean it counts as wages for those weeks?

0 coins

Exactly - if it's paid weekly and represents wages for specific weeks, Washington ESD will likely consider it earnings that could reduce your UI benefits for those weeks.

0 coins

Javier Torres

•

I went through this exact situation last year. The important distinction is whether your severance is tied to your work week or not. Washington ESD has specific rules about 'wages in lieu of notice' versus true severance payments. You'll need to report it when you file your weekly claims.

0 coins

How did you report it on your weekly claims? Was there a specific section for severance?

0 coins

Javier Torres

•

Yes, there's a question about other income received during the week. You report the gross amount of severance for each week you receive it.

0 coins

Emma Davis

•

I had such a hard time getting through to Washington ESD to get a clear answer about this when I was in your situation. Spent hours on hold and kept getting disconnected. Finally found this service called Claimyr (claimyr.com) that helped me actually reach an agent who could explain exactly how my severance would be handled. They have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works.

0 coins

Malik Johnson

•

How much did that cost? I'm already worried about money with the layoff coming.

0 coins

Emma Davis

•

It was worth it for me to get the definitive answer rather than guessing and potentially messing up my claim. Much better than spending days trying to get through on my own.

0 coins

wait so if I get severance I can't get unemployment at all?? That doesn't seem right

0 coins

No, you can still get unemployment benefits. It's just that the severance might reduce your weekly benefit amount depending on how it's structured and paid out.

0 coins

oh ok that makes more sense, I was about to panic lol

0 coins

Ravi Sharma

•

The Washington ESD handbook says that severance pay is generally not considered wages unless it's paid in lieu of notice or as compensation for a specific work period. But the reality is more complicated than what's written. Each case gets evaluated individually based on the terms of your severance agreement.

0 coins

Is there a way to know for sure before I sign the agreement? I don't want to be surprised later.

0 coins

Ravi Sharma

•

You should be able to call Washington ESD and ask them to review your specific severance terms, but good luck getting through to someone knowledgeable enough to give you a definitive answer.

0 coins

NebulaNomad

•

This is exactly why I hate dealing with unemployment stuff. They make everything so confusing and then you can't even reach anyone to get answers. The whole system is a mess.

0 coins

Javier Torres

•

I understand the frustration, but once you understand the rules it's not that complicated. The issue is just that Washington ESD doesn't make the information easily accessible.

0 coins

NebulaNomad

•

Yeah well when you're stressed about losing your job the last thing you want is to navigate bureaucratic nonsense

0 coins

Here's what I'd recommend: 1) Read your severance agreement carefully to see if it mentions anything about wages or notice periods, 2) File for UI benefits as soon as you're eligible, 3) Report the severance income accurately on your weekly claims, 4) Be prepared that your weekly benefit might be reduced during the weeks you receive severance.

0 coins

That's really helpful, thank you. Should I wait to file until after the severance period ends?

0 coins

No, file as soon as you're unemployed. It's better to have the claim active and report the severance than to delay filing and lose potential benefit weeks.

0 coins

Malik Johnson

•

I'm dealing with something similar but my severance is a lump sum payment. Does anyone know if that's handled differently than weekly payments?

0 coins

Ravi Sharma

•

Lump sum severance is typically allocated over the period it's meant to cover. So if it's equivalent to 8 weeks of pay, Washington ESD might treat it as income for those 8 weeks even though you received it all at once.

0 coins

Malik Johnson

•

That's what I was afraid of. Guess I need to call and find out for sure.

0 coins

Freya Thomsen

•

My brother just went through this and used that Claimyr service someone mentioned earlier. He said it was super easy and the agent he spoke with knew exactly how to handle his severance situation. Saved him a lot of stress trying to figure it out on his own.

0 coins

I'm starting to think that might be my best option. I really need to know before I make any decisions about the severance offer.

0 coins

Freya Thomsen

•

Yeah, he said it was way better than playing phone tag with Washington ESD for weeks. Got his answer in one conversation.

0 coins

This whole thread is making me realize I need to understand this better too. My company has been talking about layoffs and I have no idea what to expect with severance and unemployment.

0 coins

Javier Torres

•

It's good that you're thinking about it ahead of time. Most people don't realize how severance can affect their UI benefits until it's too late.

0 coins

Yeah I definitely don't want any surprises if it happens to me

0 coins

Update: I decided to use Claimyr to get a definitive answer before signing my severance agreement. The Washington ESD agent explained that since my severance is being paid weekly and is specifically labeled as 'wages in lieu of notice' in my agreement, it will reduce my UI benefits dollar-for-dollar during those 8 weeks. At least now I know what to expect!

0 coins

That's exactly what I would have expected based on your description. Good that you got confirmation before signing.

0 coins

Malik Johnson

•

Thanks for the update! This helps me understand what questions I need to ask about my own situation.

0 coins

Javier Torres

•

For anyone else reading this thread, the key takeaway is that severance doesn't disqualify you from unemployment benefits, but it might affect the amount you receive depending on how it's structured. Always report it accurately on your weekly claims to avoid overpayment issues later.

0 coins

Ravi Sharma

•

This is crucial advice. Washington ESD takes unreported income very seriously and overpayment notices can be a nightmare to deal with.

0 coins

NebulaNomad

•

Yeah and then you have to pay it all back with interest. Not worth the risk.

0 coins

Emma Davis

•

Glad this thread helped some people! The whole severance and unemployment question is way more common than people realize, especially with all the layoffs happening lately. Having a clear answer makes such a difference when you're already stressed about losing your job.

0 coins

Absolutely. I feel much better about the whole situation now that I understand exactly what to expect.

0 coins

Freya Thomsen

•

Same experience my brother had. Knowledge is power when dealing with Washington ESD!

0 coins

Omar Fawaz

•

Just want to add that vacation pay is handled similarly to severance in many cases. If you're getting paid out for unused vacation time, that might also affect your UI benefits depending on how your employer codes it.

0 coins

Good point! I'm also getting paid for unused vacation time. I'll need to ask about that too.

0 coins

Omar Fawaz

•

Definitely worth clarifying. Some employers code it as wages, others as a separate payment type.

0 coins

The bottom line is that Washington ESD wants to know about all income you receive while claiming benefits. It's always better to over-report than under-report. They can adjust your benefits if needed, but unreported income can lead to serious consequences.

0 coins

Javier Torres

•

Exactly right. Transparency is always the best policy when dealing with unemployment benefits.

0 coins

Thanks everyone, this has been really educational. At least I'll know what to do if I end up in this situation.

0 coins

Andre Laurent

•

This thread has been incredibly helpful! I'm also facing a potential layoff situation and had no idea that the way severance is structured and labeled in the agreement makes such a big difference. It sounds like the key is really understanding whether it's considered "wages in lieu of notice" versus a true severance payment. I appreciate everyone sharing their experiences - it's given me a much better roadmap for navigating this if it happens to me. The advice about filing for UI benefits right away and reporting everything accurately seems crucial.

0 coins

Washington Unemployment AI

Expert Assistant
Secure

Powered by Claimyr AI

T
I
+
20,087 users helped today