Can you collect Washington ESD unemployment if you get a severance package?
I just got laid off from my job after 8 years and they're giving me a severance package worth about $12,000. I want to file for unemployment benefits but I'm not sure if the severance will affect my eligibility or weekly benefit amount. Does anyone know how Washington ESD handles severance pay? Do I have to wait until the severance runs out before I can collect UI benefits?
63 comments


Ravi Choudhury
Yes, you can still collect unemployment benefits even with severance pay, but Washington ESD will reduce your weekly benefit amount. They calculate it based on how much severance you receive each week. If your severance pushes you over your weekly benefit amount, you might not get any UI payment for that week.
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Isabella Silva
•Thanks! Do you know if they count the full lump sum or just divide it by weeks?
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Ravi Choudhury
•They divide it by the number of weeks it's supposed to cover. So if you got $12,000 for 12 weeks, that's $1,000 per week they'll count against your benefits.
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Freya Andersen
I went through this same thing last year. Washington ESD definitely lets you file right away, you don't have to wait for severance to run out. Just make sure you report it accurately on your weekly claims or you'll have problems later.
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Isabella Silva
•Did you have any issues with the adjudication process because of the severance?
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Freya Andersen
•Nope, as long as you're honest about it upfront they handle it pretty smoothly. The key is reporting it correctly each week.
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Omar Farouk
Actually had this exact situation and couldn't get through to Washington ESD for weeks to get clarification. Kept getting busy signals and dropped calls. Finally used claimyr.com to get connected to an actual agent - they have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works. The agent explained everything about how severance affects weekly claims in like 10 minutes.
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CosmicCadet
•Never heard of that service before. Did it actually work for getting through to Washington ESD?
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Omar Farouk
•Yeah, saved me hours of trying to call. Got connected on the first try and the agent was really helpful with the severance questions.
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Chloe Harris
•How much does something like that cost though? I'm already tight on money after being laid off.
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Diego Mendoza
WASHINGTON ESD IS SO CONFUSING ABOUT THIS STUFF! I had severance too and they kept changing what they told me. First they said I couldn't file, then they said I could but had to wait, then they said I should have filed right away. The whole system is a mess.
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Isabella Silva
•That's exactly what I'm worried about. Did you eventually get it sorted out?
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Diego Mendoza
•Eventually yes but it took months and I lost out on some benefits because of the confusion. Just document everything!
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Anastasia Popova
The way it works is Washington ESD treats severance as wages for the period it covers. So if you got 3 months severance, they'll allocate it over those 12-13 weeks and reduce your UI benefits accordingly. You still need to file your weekly claims and do job searches though.
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Isabella Silva
•Wait, I still have to do job searches even if I'm getting severance pay?
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Anastasia Popova
•Yes, absolutely. The job search requirements don't change just because you have severance. You still need to log your job search activities in WorkSourceWA.
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Sean Flanagan
•This is good to know. I thought severance meant you didn't have to look for work yet.
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Freya Andersen
Just to add - make sure you understand whether your severance is considered 'wages in lieu of notice' or just a voluntary severance package. It can affect how Washington ESD processes your claim.
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Isabella Silva
•How do I find out which type mine is? My employer just called it a 'severance package.
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Freya Andersen
•Check your paperwork or ask HR. If it's in lieu of notice, Washington ESD might handle the timing differently.
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Chloe Harris
i got severance when i was laid off in 2023 and washington esd reduced my benefits to almost nothing for the first month. was super frustrating because i still had bills to pay
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Isabella Silva
•That's what I'm worried about. Did your benefits go back to normal after the severance period?
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Chloe Harris
•yeah once the severance allocation was done my weekly benefits went back to the full amount
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Ravi Choudhury
One thing to watch out for - if your severance includes health insurance continuation, that's not counted as wages by Washington ESD. Only the cash portion affects your unemployment benefits.
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Isabella Silva
•Good to know! My package includes 6 months of health insurance so that shouldn't count against me.
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Ravi Choudhury
•Exactly, just the cash portion. Makes the calculation a bit easier.
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CosmicCadet
Does anyone know if vacation pay that gets paid out with severance is treated the same way? I'm getting both and not sure how to report it.
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Anastasia Popova
•Vacation pay is typically treated as wages for the period it would have covered, similar to severance. Report both separately on your weekly claims.
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CosmicCadet
•Thanks, I'll make sure to break it down when I file my claims.
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Omar Farouk
Another tip - if you're having trouble getting through to Washington ESD about severance questions, that Claimyr service I mentioned earlier really does help. The agents know all the rules about how different types of severance payments affect your benefits.
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Zara Shah
•I might have to try that. Been trying to call Washington ESD for two weeks about my severance situation.
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Omar Farouk
•Definitely worth it if you need answers quickly. Better than spending hours on hold.
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Sean Flanagan
This thread is super helpful. I'm in a similar situation and was totally confused about whether to file right away or wait. Sounds like I should file immediately?
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Ravi Choudhury
•Yes, file as soon as you're eligible. Washington ESD will handle the severance calculations, but you want to get your claim started.
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Sean Flanagan
•Perfect, I'll file this week then. Thanks everyone!
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Diego Mendoza
Just remember that if you don't report your severance correctly, Washington ESD will find out eventually and you might have to pay back benefits. They cross-reference with employers.
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Isabella Silva
•Good point. I definitely want to be honest about everything from the start.
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Diego Mendoza
•Smart approach. It's not worth the headache of an overpayment notice later.
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NebulaNomad
My company is doing layoffs next month and I'm probably on the list. This whole thread has been really informative about what to expect with severance and unemployment.
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Anastasia Popova
•Sorry to hear that. At least you'll be prepared with the right information when the time comes.
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NebulaNomad
•Yeah, definitely better to know ahead of time than be scrambling to figure it out.
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Freya Andersen
One last thing - make sure you keep all your severance paperwork. Washington ESD might ask for documentation during the application process or later if there are any questions.
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Isabella Silva
•Will do. I've been saving everything from the layoff process.
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Freya Andersen
•Good thinking. Documentation is always your friend with Washington ESD.
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Luca Ferrari
thanks for all the info everyone. this is way more helpful than the washington esd website which is confusing as hell
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Chloe Harris
•totally agree, the website is so hard to navigate
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Luca Ferrari
•right? these forum discussions are way better for getting real answers
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Isabella Silva
Update: I filed my initial claim today and made sure to report my severance package accurately. Thanks everyone for the advice! I feel much more confident about the process now.
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Ravi Choudhury
•Great job getting it filed. Make sure to keep reporting the severance on your weekly claims too.
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Isabella Silva
•Will do. I'm going to set a reminder to make sure I don't forget each week.
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Omar Farouk
•Smart move filing right away. If you run into any issues during adjudication, remember that Claimyr option for getting through to agents quickly.
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Nia Wilson
This whole thread should be pinned somewhere. So much better information than what you get from Washington ESD directly.
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Anastasia Popova
•Agreed. Real experiences from people who've been through it are invaluable.
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Nia Wilson
•Exactly. The official guidance is so vague compared to these practical examples.
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Zara Shah
Used that Claimyr service mentioned earlier and finally got answers about my severance situation. Worth every penny to avoid the endless phone runaround with Washington ESD.
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Omar Farouk
•Glad it worked out for you too! It really does save a lot of frustration.
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Zara Shah
•Definitely. The agent explained everything clearly and I got my claim sorted out properly.
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Mateo Martinez
Been reading through all these comments and feel like I finally understand how severance affects unemployment benefits. Time to file my claim!
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Freya Andersen
•Good luck with your claim! Remember to stay on top of your weekly filings.
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Mateo Martinez
•Thanks! I've got everything organized and ready to go.
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Aisha Hussain
This discussion convinced me I need to be more proactive about understanding my benefits. Never realized how complicated the severance rules could be.
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Ravi Choudhury
•It's always good to be informed before you need it. Unemployment rules can be tricky.
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Aisha Hussain
•Absolutely. Better to know this stuff ahead of time than learn it during a crisis.
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