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Aria Khan

Can you collect unemployment Washington ESD if you get severance pay - timing question

Just got laid off from my tech job in Seattle and they're giving me 8 weeks of severance pay. I'm confused about whether I can file for Washington ESD unemployment benefits right away or if I have to wait until the severance runs out? The HR person wasn't clear and I don't want to mess anything up. Has anyone dealt with this situation before? I really need to know if I should file my claim now or wait.

You can actually file for Washington ESD benefits immediately even with severance pay. The key thing is how Washington ESD treats the severance - it depends on whether it's considered wages for specific weeks or a lump sum payment. You should definitely file your claim right away to establish your benefit year and get the process started.

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Really? I thought I had to wait until the severance ended. So I won't get any actual payments until it runs out though, right?

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Exactly - you file now to protect your claim date, but benefit payments will likely be delayed until the severance period ends. It's better to have the claim processing during that time.

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This is so confusing! I'm in a similar situation but with 12 weeks severance. Been trying to call Washington ESD for three days straight and can't get through to anyone. The website doesn't give clear answers about this either.

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I had the same problem reaching them last month. Found this service called Claimyr that actually got me through to a real Washington ESD agent in like 20 minutes. Check out claimyr.com - they have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works.

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That sounds too good to be true... but I'm desperate at this point. Did it actually work for your severance question?

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Yeah it did! The agent explained exactly how they handle severance in my specific situation. Way better than guessing from the website.

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From what I understand, Washington ESD looks at severance as either allocated to specific weeks or as a lump sum. If it's allocated weekly (like your regular salary for 8 weeks), those weeks won't be payable for UI benefits. If it's a lump sum, it might not affect your weekly benefits at all depending on the amount.

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Mine is being paid out as regular biweekly paychecks for the 8 weeks, so I guess that means it's allocated weekly?

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That sounds like allocated severance, which means Washington ESD will probably consider those weeks as employed weeks where you're not eligible for benefits.

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ugh the whole system is so complicated!! why cant they just give straight answers about this stuff. i got severance too but its only 4 weeks so maybe not worth the hassle of filing

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You should still file! Even if you don't get payments immediately, you're establishing your claim and the job search requirements clock doesn't start until you're actually collecting benefits.

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oh ok that makes sense i guess. will try to file online this weekend

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I went through this exact situation 6 months ago with a 10-week severance package. Filed my Washington ESD claim immediately and they put me in 'standby' status during the severance period. Once the severance ended, my benefits kicked in automatically. Definitely file right away - the worst thing is losing time on your benefit year.

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That's really helpful! Did you have to do anything special during the standby period or just wait?

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I still had to file my weekly claims but they showed $0 payable. Washington ESD told me to keep filing to maintain my claim. Also didn't have to do job search activities during severance period.

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This is exactly why the Washington ESD system drives me crazy! They make everything so unclear and then you can't even reach anyone to get answers. I've been dealing with this for months and every time I think I understand the rules, something else comes up.

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I totally get the frustration. That's actually why I ended up using Claimyr - got tired of the endless busy signals and automated messages. Being able to talk to an actual person made all the difference.

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How much does that cost though? I'm already tight on money with the job loss.

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It's worth checking out their site for details, but honestly getting my claim sorted out properly saved me way more in the long run than what I paid.

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One important thing to remember is that your benefit year starts when you file, regardless of when you actually start receiving payments. So if you delay filing until after severance, you could be shortening your total benefit period. Always better to file as soon as you're unemployed.

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I didn't know that about the benefit year! So even though I'm getting severance for 8 weeks, my benefit year clock starts ticking now?

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Exactly. Your benefit year is 52 weeks from when you file, so those 8 weeks of severance would be part of that year whether you're collecting or not.

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just want to say thanks for asking this question - i have been wondering the same thing but was too embarrassed to ask. my company is doing layoffs next month and offered severance packages so this is really helpful info

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Don't ever feel embarrassed about asking! This is one of the most common questions about unemployment benefits. Better to ask and get it right.

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UPDATE: I tried that Claimyr thing and holy crap it actually worked! Got through to Washington ESD in about 15 minutes and the agent walked me through exactly how my severance affects my claim. Turns out I was overthinking it completely.

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That's awesome! What did they tell you about the severance situation?

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Basically same as what others said here - file immediately, severance delays payments but doesn't affect benefit year, keep filing weekly claims even at $0. Agent was super patient and explained everything clearly.

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Glad it worked out! That's exactly the kind of clarity you need when dealing with this stuff.

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Does anyone know if vacation payout affects this too? I'm getting 3 weeks vacation payout along with 6 weeks severance and I'm wondering if that complicates things even more.

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Vacation payout is usually treated differently than severance. It's typically considered wages for the period you would have taken the vacation, so it could affect eligibility for those specific weeks.

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Ugh, so both the vacation payout AND severance could delay my benefits? This is getting complicated.

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Yes, but again - still file immediately. Washington ESD will sort out how all the different payments affect your specific claim. Don't let the complexity delay your filing.

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Thanks everyone for all the helpful info! I'm going to file my Washington ESD claim this weekend and just deal with whatever happens. At least now I know I won't be making a huge mistake by filing early.

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Smart move! Remember to be completely honest about the severance when you file - they'll ask about any payments from your employer.

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Good luck! The process is actually pretty straightforward once you get started. Just make sure to keep filing those weekly claims even if they show $0.

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Similar situation here but with a twist - my severance is contingent on signing a non-compete. Does that affect unemployment eligibility at all? Sorry to piggyback on your thread but figured others might wonder about this too.

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Non-competes don't typically affect Washington ESD eligibility directly, but they might impact your job search requirements depending on how restrictive they are. Definitely something to discuss with an agent.

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Makes sense. Might have to try that Claimyr service too if I can't get through the regular way.

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filed my claim online last night and it was actually pretty easy. took like 20 minutes and now im in pending status. guess ill see what happens with my severance situation

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How long did they say it would take to process? I'm planning to file this weekend.

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said 2-3 weeks for initial determination but could be longer if they need more info about the severance

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One thing to watch out for - make sure your employer reports the severance correctly to Washington ESD. I had issues where my company reported it wrong and it messed up my benefits calculation for months.

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How would I know if they reported it wrong?

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You'll see it on your monetary determination when Washington ESD processes your claim. If the severance amount or dates look wrong, you can appeal or contact them to correct it.

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Been lurking on this thread and just wanted to say how helpful this discussion has been. I'm potentially facing a layoff situation soon and had no idea about any of this severance stuff. Definitely bookmarking this for reference.

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Glad it's helpful! The key takeaway is always file immediately when you become unemployed, regardless of severance or other complications.

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Final update from me - got my monetary determination letter today and everything looks correct. Washington ESD correctly identified my severance period and my benefits will start the week after it ends. Really glad I filed right away instead of waiting.

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That's great news! Thanks for the update. Gives me confidence that filing early was the right call.

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Perfect example of why timing matters with these claims. You're all set up now instead of scrambling later.

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