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Effie Alexander

Can you claim unemployment if you get a severance package from Washington ESD?

My company is laying me off next month and they're offering a severance package worth about $8,000. I'm wondering if I can still file for unemployment benefits with Washington ESD while receiving this severance? I've heard conflicting information - some people say it disqualifies you completely, others say it just delays when you can start collecting. Has anyone dealt with this situation before? I really need to know because I'm trying to figure out my finances for the next few months.

Yes, you can still claim unemployment even with a severance package in Washington state. The key thing is HOW the severance is paid out. If it's a lump sum, it usually doesn't affect your weekly benefits. If it's paid out over time like regular wages, then it might reduce your weekly benefit amount during those weeks.

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It's going to be paid as a lump sum when I leave. So that means I can file right away?

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Generally yes, but you'll want to report it when you file your initial claim. Washington ESD will determine how it affects your benefits based on their current policies.

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I got severance last year and it was such a headache dealing with Washington ESD about it. They kept asking for documentation and my claim sat in adjudication for weeks. Make sure you have all your paperwork ready when you file.

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What kind of documentation did they want from you?

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They wanted the severance agreement, proof of the payment amount, and details about whether it was for wages or just a goodwill payment. I had to submit it through their online portal multiple times.

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If you're having trouble getting through to Washington ESD about severance questions, you might want to check out Claimyr at claimyr.com. They help people get connected to actual ESD agents without waiting on hold forever. 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 it saved me hours of calling.

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Is that legit? I've never heard of a service like that before.

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Yeah it's real. They basically handle the calling and waiting for you, then connect you when an agent picks up. Super helpful when you have specific questions like yours about severance.

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SEVERANCE DOESNT DISQUALIFY YOU!!! I see this question all the time and people panic for no reason. Washington state treats severance differently than regular wages. You just need to report it correctly when you file.

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Calm down with the caps lol but you're right. I think the confusion comes from people mixing up severance with vacation payout or other types of final pay.

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sorry about the caps but yeah exactly - vacation pay and severance are handled totally different by ESD

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The timing matters too. If your severance is considered 'pay in lieu of notice' then it might create a waiting period before you can collect benefits. But if it's just a general severance payment, you should be good to go.

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How do I know which type mine is? The paperwork just says 'severance payment' but doesn't specify.

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Look at whether it mentions covering a specific time period. Pay in lieu of notice usually says something like 'equivalent to 2 weeks notice' or similar. If it's just a flat amount with no time reference, it's probably regular severance.

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I'm going through this exact same thing right now! Got laid off in December with a $6k severance and filed for unemployment immediately. My claim was approved and I've been getting my weekly benefits with no issues. The key is being upfront about it when you file.

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That's exactly what I needed to hear! Did you have to provide any special documentation or was it pretty straightforward?

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I uploaded a copy of my severance letter when I filed online, just to be safe. The whole process was actually smoother than I expected.

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Just make sure you understand the difference between severance and COBRA continuation. Some people get confused and think their COBRA payment affects unemployment - it doesn't.

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Good point. Health insurance stuff is separate from unemployment eligibility.

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One more thing to consider - if your severance is spread over multiple tax years, that might affect how you report it. But that's more of a tax issue than an unemployment issue.

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Mine will all be paid in 2025 so I think I'm okay there.

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The Washington ESD website has a section about severance pay under their eligibility guidelines. It's worth reading through if you want the official info straight from the source.

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I tried looking on their website but it's so confusing. The FAQ section didn't really answer my specific question.

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That's another reason why calling through Claimyr might help - you can get answers to your specific situation instead of trying to interpret the general website info.

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just file and be honest about the severance. worst case they'll ask for more info but you won't be penalized for reporting it correctly from the start

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Yeah I'm definitely going to be transparent about everything. Better safe than sorry.

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Keep in mind that even if your severance doesn't affect your initial eligibility, you still need to meet all the other requirements - like being able and available for work, conducting job searches, etc.

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Right, I'll need to start my job search activities right away. Do I need to log those in WorkSource from day one?

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Yes, you'll need to meet the job search requirements starting with your first week of filing. Usually it's 3 job search activities per week but check the current requirements.

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I had a similar situation but my company called it a 'transition payment' instead of severance. Washington ESD still treated it the same way - no impact on my benefits as long as I reported it.

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Interesting, so they look at what it actually is rather than just what it's called?

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Exactly. They care more about the nature and timing of the payment than the specific terminology your employer uses.

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Question - if you get severance AND vacation payout, do you report both separately? I'm trying to figure this out for my own situation.

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Yes, you should report them separately because they're treated differently. Vacation payout might be considered wages for specific weeks, while severance usually isn't.

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Thanks, that makes sense. I'll make sure to break them out when I file.

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The bottom line is don't let severance stop you from applying for unemployment benefits. Too many people assume they're not eligible and miss out on benefits they're entitled to.

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Absolutely. I was worried about nothing it seems like. Thanks everyone for the help!

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Does anyone know if the severance reporting affects your weekly claim filing process? Like do you have to mention it every week or just when you initially apply?

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Usually just when you initially apply, unless it's being paid out over multiple weeks. For a lump sum, you report it once and move on.

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For anyone still confused about the details, I'd really recommend using Claimyr to talk to an actual ESD agent. When I had questions about my severance situation, I got a much clearer answer talking to a person than trying to figure it out from the website.

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How much does that service cost though?

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It's worth it for the peace of mind, especially if you have a complex situation. Check out their site for current info.

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I work in HR and deal with this all the time. Most severance packages in Washington state don't affect unemployment eligibility. The key is making sure your employer codes it correctly and you report it accurately to ESD.

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That's really helpful to hear from someone who sees this regularly. Makes me feel much better about my situation.

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Yeah, it's really not as complicated as people think. The unemployment system is designed to help people who lose their jobs, and severance is just part of that transition.

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What about if you negotiate a higher severance amount - does that change anything with unemployment? I'm trying to negotiate mine up before I sign.

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The amount itself usually doesn't matter for unemployment eligibility. Whether it's $5,000 or $15,000, it's still treated as severance. Just make sure it's structured as a lump sum if possible.

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Been there, done that. Filed with a $12k severance package and had zero issues. Washington ESD processed my claim normally and I got my benefits on schedule. Just be honest and thorough in your application.

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Perfect, that's exactly the reassurance I needed. Thanks for sharing your experience!

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One last tip - make sure you get a copy of your severance agreement for your records. You might need it later if ESD has questions, and it's easier to get it now than trying to request it from your old employer months later.

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Good advice! I'll make sure to save everything before I leave the company.

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And if you do end up needing to talk to ESD about any of this documentation, Claimyr can help you get through to someone quickly instead of waiting on hold.

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