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Amara Adebayo

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

My company is laying me off next month and they're offering a severance package of about $8,000. I'm wondering if I can still file for unemployment benefits with Washington ESD while receiving this severance pay? I've never been in this situation before and I'm not sure how it works. The severance would cover about 2 months of my current salary. Does Washington ESD consider this as income that would disqualify me from UI benefits?

Yes, you can typically claim unemployment even with severance, but it depends on how the severance is structured. Washington ESD treats lump sum severance differently than periodic payments. If it's a lump sum, they usually won't count it as weekly income against your benefits.

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That's good to hear! It would be paid as a lump sum. Do I need to report it when I file my initial claim?

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Yes, definitely report it on your initial application. Be honest about all severance details - Washington ESD will find out anyway and it's better to be upfront.

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I went through this exact situation last year. Got a $12K severance and was still able to collect UI benefits. The key thing is making sure your employer codes the separation correctly as a layoff, not a voluntary resignation.

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Good point about the separation coding. How long did it take for your claim to get approved?

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About 3 weeks, but I had to call Washington ESD to clarify the severance situation. That's when I found out about Claimyr - saved me hours of trying to get through on the phone. Check out claimyr.com, they have a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works.

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wait i thought any severance money disqualifies you from unemployment?? this is confusing

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That's a common misconception. Washington ESD has specific rules about how different types of severance affect benefits. It's not an automatic disqualification.

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oh ok thanks for clarifying, i was worried about that for my situation too

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The Washington ESD will look at whether the severance is considered 'wages' or 'dismissal pay.' If it's dismissal pay (which most lump sum severances are), it typically won't affect your weekly benefit amount. However, if it's structured as continuation of wages, that could impact your eligibility timing.

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How can I tell which type my severance is? The paperwork just says 'severance payment.

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Look for language about whether it's 'in lieu of notice' or 'continuation of salary.' If it's just a lump sum goodbye payment, it's likely dismissal pay. When in doubt, call Washington ESD to clarify before you file.

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I'm dealing with this nightmare right now. My severance is being paid out over 4 months and Washington ESD is saying it counts as wages for those weeks. So I can't collect unemployment until the severance period ends. It's ridiculous!

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That's because periodic severance payments are treated differently than lump sums. Washington ESD considers them continued employment essentially.

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Yeah I wish I had known that before accepting the payment structure. Now I'm stuck with no unemployment benefits for months.

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You might want to try Claimyr to get through to an agent and see if there's any way to appeal or clarify your situation. Sometimes there are details that can change how they classify it.

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Just be prepared for potential delays in processing. Any time there's severance involved, Washington ESD tends to put claims into adjudication to review the details. Mine took 5 weeks to get approved.

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5 weeks?! That's a long time to wait without income. Did you eventually get back pay for those weeks?

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Yes, once approved I got back pay for all the weeks I was eligible. But those 5 weeks of uncertainty were stressful financially.

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Pro tip: make sure you have all your severance documentation ready when you file your claim. Employment contract, separation agreement, anything that explains the payment structure. This can help avoid delays.

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Great advice, I'll gather all that paperwork before I file. Better to be over-prepared than under-prepared.

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does the amount of severance matter? like if its a really big amount does that change things?

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The amount itself doesn't typically matter for eligibility, but larger amounts might trigger additional review by Washington ESD to make sure everything is properly classified.

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ok good to know, mine isnt huge but wanted to make sure

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Washington ESD's website has a section about severance pay and unemployment benefits. Worth reading through before you file to understand all the nuances.

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I'll definitely check that out. Do you remember what section it's under?

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I think it's under the 'Eligibility' or 'FAQ' section. Search for 'severance' on their site and it should come up.

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One thing to consider is the tax implications too. Severance is taxable income, and so are unemployment benefits. Make sure you're setting aside money for taxes on both.

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Good point about taxes. I hadn't thought about that aspect yet.

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Yeah, it can be a surprise come tax time if you're not prepared. Both will show up on tax forms.

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My advice is to file your unemployment claim as soon as you're eligible, even if you're not 100% sure about the severance impact. Washington ESD will review it and let you know. It's better to have the claim in the system than to wait and potentially lose out on benefits.

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That makes sense. I was thinking about waiting until I understood everything perfectly, but you're right that it's better to get the process started.

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Another thing - if your claim does get complicated because of the severance, don't spend hours on hold trying to reach Washington ESD. I used Claimyr after my friend recommended it and got through to an agent in minutes instead of hours. Way less stressful than the regular phone system.

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How much does that service cost? I'm already worried about money with the job loss.

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It's worth it when you consider the time saved and stress avoided. Check out their video demo to see if it's right for your situation.

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I had a severance situation and Washington ESD initially denied my claim, but I appealed and won. The key was showing that the severance was truly dismissal pay and not continued wages. Don't give up if you get an initial denial.

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How long did the appeal process take?

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About 6 weeks total, but I got back pay for all the weeks I should have been receiving benefits. The appeal hearing was by phone and pretty straightforward.

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Make sure you understand your company's severance policy too. Some companies try to make you sign agreements that could affect your unemployment eligibility. Read everything carefully before signing.

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I haven't signed anything yet, so I'll definitely review the paperwork carefully. What should I look out for specifically?

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Anything about non-compete clauses or agreements not to file for unemployment. Some companies try to sneak in language that could complicate your claim.

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been there, the waiting and uncertainty is the worst part. but in my experience washington esd is generally fair about severance situations once they review everything properly

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That's reassuring to hear. I'm trying to stay positive about the whole situation.

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Document everything! Keep copies of all severance agreements, email communications about the layoff, and any other relevant paperwork. You never know what Washington ESD might ask for during their review.

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Good advice. I'll start a file with all the relevant documents.

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The good news is that if you do qualify for unemployment benefits, the severance gives you a bit of a financial cushion while you're job searching. It takes some pressure off the situation.

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That's true. I'm trying to look at the positives in this difficult situation.

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One last thing - make sure you're still meeting all the other unemployment requirements like job search activities, even if your claim is under review because of the severance. You don't want to lose benefits later because you weren't looking for work.

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Great reminder. I'll make sure to start my job search activities right away and keep good records.

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Exactly. The severance issue is separate from the other eligibility requirements. You still need to be able, available, and actively seeking work.

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Thanks everyone for all the helpful information! This thread has been really educational. I feel much more confident about navigating this situation now.

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Same here! I really appreciate everyone sharing their experiences and knowledge.

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Good luck with your claim! Remember that most severance situations do work out fine with unemployment benefits, so try not to stress too much about it.

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Thank you! I'll update this thread once I know how my claim turns out, in case it helps others in similar situations.

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