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Max Reyes

Can you collect severance and unemployment benefits in Washington state?

I just got laid off from my job and they're giving me 8 weeks of severance pay. I'm wondering if I can still file for unemployment benefits with Washington ESD while receiving this severance? I've heard conflicting information about whether severance affects your UI eligibility. Does anyone know how this works?

Yes, you can collect both but there are rules about how it affects your weekly benefit amount. Washington ESD considers severance as deductible income, so it might reduce your weekly UI payment depending on how much you receive.

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Do you know if they deduct it dollar for dollar or is there some kind of calculation?

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It's not dollar for dollar. They have a formula based on your weekly benefit amount. You should definitely still apply though.

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I was in the same situation last year! Filed for UI while getting severance. Washington ESD will ask you to report the severance on your weekly claims. They calculate how much to deduct based on when you receive it.

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Did you have any trouble getting through to them to ask questions about it?

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Oh yeah, calling Washington ESD was a nightmare. Kept getting busy signals or hung up on after waiting forever.

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You definitely want to file your claim right away even with the severance. The key thing is HOW the severance is paid out. If it's a lump sum versus weekly payments, Washington ESD treats it differently for calculating your benefits.

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Mine is being paid out in weekly installments over 8 weeks. Does that make a difference?

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Yes, that actually works better for you. Weekly severance payments are easier to calculate against your UI benefits than lump sums.

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I had such a hard time getting through to Washington ESD to ask about this exact question. Spent hours on hold multiple times. Finally found this service called Claimyr (claimyr.com) that helped me get connected to an actual agent. They have a video demo at https://youtu.be/7DieNd3C7zQ showing how it works.

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Is that like a paid service to help you call them? Seems weird to pay to call a government agency.

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I was skeptical too but I was desperate. It actually worked and saved me from wasting more time trying to get through on my own.

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ugh the washington esd phone system is the worst!! been trying to call for weeks about my claim

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Have you tried calling right when they open? I heard that might help.

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tried that too, still busy signals. so frustrating when you need answers

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The important thing to remember is that severance doesn't disqualify you from UI, it just affects the amount you might receive each week. Washington ESD has specific rules about how they calculate deductible income.

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This is really helpful info. I'm in a similar situation and was worried I couldn't file at all.

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Definitely file! Even if your weekly benefit gets reduced, you might still be eligible for partial benefits.

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Make sure you're honest about reporting the severance on your weekly claims. Washington ESD will find out eventually and if you don't report it correctly, you could end up with an overpayment situation.

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Good point. I definitely don't want to get in trouble for not reporting something properly.

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Yeah overpayment notices are a nightmare to deal with. Better to be upfront from the start.

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I think the rule is that if your severance plus any other income equals or exceeds your weekly benefit amount, you won't get UI that week. But I'm not 100% sure on the exact calculation.

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That's close but not exactly right. Washington ESD uses a specific formula that considers your weekly benefit amount and the timing of when you receive the severance.

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Thanks for the clarification! The rules are so confusing.

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I'm dealing with this too and tried calling Washington ESD multiple times. Finally someone mentioned that Claimyr service and it actually got me through to an agent who explained everything about how severance affects benefits.

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Was it worth it? I'm getting desperate trying to reach someone.

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For me it was. Saved me from spending more hours on hold just to get hung up on again.

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Whatever you do, don't wait to file your claim thinking you have to wait until the severance runs out. You could miss out on benefits you're entitled to.

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That's a good point. I'll file this week and just report the severance properly.

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Exactly! Even if some weeks you don't get a payment because of the severance, you'll still be in the system and eligible once it ends.

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The Washington ESD website has some info about this but it's pretty confusing. Has anyone found clearer explanations anywhere?

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The website is terrible for explaining these complex situations. That's why talking to an actual agent is so helpful.

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Yeah if only you could actually get through to one!

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My company is doing layoffs next month and I might be affected. This thread is really helpful for understanding what to expect with severance and UI.

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Sorry to hear about the potential layoffs. At least you'll be prepared if it happens.

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Thanks. Trying to plan ahead as much as possible.

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I got severance last year and it was such a pain figuring out how to report it correctly on my weekly claims. Wish I had known about some of these resources earlier.

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Did you end up getting any overpayment issues from reporting it wrong initially?

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Luckily no, but only because I was conservative and probably under-reported some weeks when I wasn't sure.

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The timing of when you file your initial claim matters too. Don't wait until your severance runs out - file right away so your benefit year starts.

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That's a really good point I hadn't thought about. I'll file this week.

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Yeah, you want to get that claim date established even if you don't collect benefits right away.

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Has anyone dealt with situations where the severance agreement has strings attached? Like non-compete clauses that might affect job searching?

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That's a separate issue from the UI benefits, but you'd need to be careful about meeting the job search requirements if you have restrictions on where you can work.

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Good point. I'll need to read my agreement more carefully.

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just want to say this thread has been super helpful! was totally confused about this before

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Glad it helped! I feel much more confident about filing now.

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same! good luck with your claim

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Update: I actually used Claimyr again to get through to Washington ESD about a different question and the agent was really helpful explaining all the severance rules. Much clearer than trying to figure it out from the website.

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Might have to try that myself. Getting tired of the phone runaround.

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It's definitely worth it if you're stuck and need actual answers from someone who knows the system.

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Remember that even if your severance reduces your weekly benefit to zero for some weeks, you're still considered to be in a benefit year and those weeks count toward your total claim duration.

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So I wouldn't lose those weeks completely? That's good to know.

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Right, they still count as part of your claim period even if the payment is reduced to zero.

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One thing to watch out for - make sure you understand if your severance is being paid as salary continuation or as a lump sum. Washington ESD treats these differently.

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Mine is weekly payments that match my old salary. I assume that's salary continuation?

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Sounds like it. That's usually easier to calculate against your UI benefits than a lump sum.

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Thanks everyone for all the helpful info! I feel much better about navigating this situation now. Going to file my claim this week and report the severance properly.

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Good luck! Remember to keep good records of everything for your weekly claims.

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You'll do fine. Just be honest about reporting everything and you should be good.

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Feel free to ask if you run into any issues with the weekly claims process!

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