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Giovanni Rossi

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

My company is laying me off next month and offering a severance package of about $8,000 spread over 4 months. I'm wondering if I can still file for Washington ESD unemployment benefits while receiving this severance? I've heard conflicting information - some people say severance disqualifies you completely, others say it just delays benefits. Anyone have experience with this situation? I really need the UI benefits to cover my expenses since the severance alone won't be enough.

The key thing with Washington ESD is HOW the severance is paid out. If it's a lump sum representing wages for future weeks, it can delay your benefits. If it's just a one-time payment not tied to specific weeks, you might be eligible immediately. You'll need to report it when you file your initial claim.

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It's being paid out over 4 months, so $2,000 per month. Does that make a difference?

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That payment schedule could be treated as deductible income depending on how your employer codes it. You'll want to get clarification from HR about whether it represents payment for specific work weeks.

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I went through this exact situation last year. Had a 6-month severance and was still able to get unemployment, but there was definitely some confusion initially. Washington ESD had to review my claim and it took about 3 weeks longer than normal to get approved.

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Did you have to do anything special when filing your claim to explain the severance situation?

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Yeah, I had to provide documentation from my employer explaining the severance terms. The adjudication process was longer because they had to determine if it affected my weekly benefit amount.

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If you're having trouble getting through to Washington ESD to clarify this, you might want to check out claimyr.com - they help people actually reach ESD agents by phone. There's a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works. I used it when my claim got stuck in adjudication and finally got answers about my specific situation.

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Is that service legit? I've been trying to call Washington ESD for weeks about my own severance question.

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Yeah, it worked for me. Way better than spending hours on hold or getting disconnected. They handle the calling process and connect you when an agent is available.

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The Washington ESD handbook says severance payments are generally NOT deductible from weekly benefits UNLESS they represent payment in lieu of notice or wages for a specific period. Most true severance packages don't disqualify you, but the timing and amount might affect your weekly benefit calculation.

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This is exactly what happened to me. My severance was considered a 'dismissal payment' and didn't affect my UI at all.

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How do I make sure Washington ESD understands it's true severance and not payment in lieu of notice?

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You'll need documentation from your employer clearly stating the nature of the payment. The separation notice they send to ESD should specify this.

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ugh why is this so complicated?? I just want to know if I can pay my bills while looking for work. The whole system seems designed to confuse people.

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I get the frustration, but it's actually pretty straightforward once you understand the basic rule: if the severance is for past work or general dismissal, you're usually good to go.

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I guess... I just wish they made this clearer on their website instead of having to dig through handbooks.

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Update: I called my HR department and they confirmed the severance is a 'dismissal payment' not tied to specific work weeks. They said they'll note this on the separation paperwork they send to Washington ESD.

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Perfect! That should make your claim process much smoother. You'll still need to report the severance payments on your weekly claims, but they shouldn't reduce your benefits.

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Glad you got clarification! Having that documentation from HR will definitely help if any questions come up during processing.

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I'm in a similar boat but my severance is way bigger - like $25,000. Does the amount matter for Washington ESD eligibility?

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The amount doesn't disqualify you, but if it's structured as payment for future weeks of work, it could delay your benefits for however many weeks that represents.

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It's a lump sum, not weekly payments. Sounds like I should be okay then?

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Most likely, yes. Just make sure you report it accurately when filing your claim and have documentation about its nature.

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Been unemployed for 2 months now and still dealing with adjudication issues. Wish I had known about these severance complications earlier.

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If you're still stuck in adjudication, definitely consider using Claimyr to actually talk to someone at Washington ESD. Sometimes these issues need direct agent contact to resolve.

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Thanks, I'll check that out. Getting pretty desperate to resolve this.

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For what it's worth, I received both severance and unemployment for about 4 months last year. No issues at all. The key was having proper documentation and being upfront about everything when filing.

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That's reassuring! Did you have to do anything special during your weekly claims process?

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Just reported the severance payments accurately each week. Washington ESD didn't reduce my benefits since it was classified as dismissal pay, not wages.

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Wait, I thought ANY income while on unemployment reduces your benefits? This is news to me.

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Not all income is treated the same. Severance payments that aren't tied to specific work weeks are often not deductible. Work wages, on the other hand, definitely affect your weekly benefit amount.

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Good to know! I've been avoiding applying for benefits because I thought my severance would disqualify me completely.

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The most important thing is to be completely honest when filing your claim. Washington ESD will figure out the severance impact during processing, but lying about it can disqualify you permanently.

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Absolutely planning to be transparent about everything. Better to deal with any delays than risk disqualification.

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This is why the system is so scary though - you never know if you're doing something wrong.

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My company is doing layoffs next quarter and I'm probably on the list. This thread is super helpful for planning ahead!

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Smart to research this ahead of time. Make sure you get clear documentation about any severance package before you actually need to file for benefits.

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Will do. Sounds like the key is having HR specify exactly what type of payment it is.

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I had a friend who received severance and unemployment simultaneously with no problems. I think as long as you're not double-dipping on wages for the same time period, Washington ESD is pretty reasonable about it.

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That's exactly right. The issue isn't receiving both - it's whether the severance represents payment for future work weeks or just a dismissal benefit.

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Makes sense. Thanks for clarifying the distinction.

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Thanks everyone for all the advice! I feel much more confident about filing my claim now. Will definitely make sure I have proper documentation and report everything accurately.

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You should be fine with what you've described. Good luck with the job search!

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Hope your claim processes smoothly. Feel free to update us on how it goes!

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This whole thread makes me realize I should have asked these questions before accepting my severance package. Too late now but good info for others.

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Even if you already accepted it, you can still apply for benefits. Just be prepared to explain the severance terms during the application process.

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Good point. I'll gather my paperwork and give it a shot.

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One more thing - if anyone runs into issues reaching Washington ESD about severance questions, Claimyr has been a lifesaver for me. Much easier than trying to get through on your own, especially when you need specific answers about your situation.

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I keep seeing Claimyr mentioned. Is it worth it for basic questions or mainly for complex situations?

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I'd say it's most valuable when you have specific questions that generic website info can't answer, like severance impact on your particular situation.

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Been reading this thread and wow, unemployment rules are way more nuanced than I thought. Glad I found this discussion before I potentially needed it.

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Yeah, there are definitely more exceptions and special cases than most people realize. The key is understanding the logic behind the rules.

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Makes sense. Better to be informed ahead of time than scrambling to figure it out when you actually need benefits.

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Quick question - does it matter if the severance is paid as salary continuation vs. lump sum for Washington ESD purposes?

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Yes, that can make a big difference. Salary continuation might be treated as wages for specific weeks, while a lump sum dismissal payment typically isn't deductible from benefits.

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Good to know. I'll make sure to clarify that with my employer if I'm ever in this situation.

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This thread convinced me to finally apply for benefits. I've been putting it off because I wasn't sure about my severance situation, but sounds like I should at least try.

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Definitely apply! Worst case scenario, they'll clarify any issues during processing. You might be missing out on benefits you're entitled to.

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You're right. I'll file this week and see what happens.

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Just want to add that I used Claimyr recently for a different issue and it was super helpful. The wait time to actually talk to someone at Washington ESD can be brutal otherwise.

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How long did it take for them to connect you with an agent?

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Way faster than calling myself. They handled all the waiting and just called me back when someone was available. Saved me hours of frustration.

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