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Maxwell St. Laurent

Can you collect unemployment if you are getting severance pay from Washington ESD?

Just got laid off from my tech job last month and they're giving me 6 weeks of severance pay. I'm wondering if I can still file for unemployment benefits while receiving this severance or if I have to wait until it runs out? The severance is being paid out weekly, not as a lump sum. I've heard conflicting info about this and want to make sure I don't mess up my claim with Washington ESD. Anyone been through this situation before?

You can file for unemployment while getting severance, but Washington ESD will reduce your weekly benefit amount by the severance you receive that week. So if your UI benefit is $400/week and you get $300 in severance, you'd only get $100 from unemployment that week.

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That makes sense, thanks! Do I report the severance amount on my weekly claim?

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Yes, you have to report it as earnings when you file your weekly claim. Be honest about it or you could face an overpayment later.

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I went through this exact situation last year. Filed my claim right away even though I was getting severance. Washington ESD website has a section about severance pay that explains how it affects your benefits. The key is to report everything accurately.

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Did you have any issues with your claim being delayed because of the severance?

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Nope, went through smoothly as long as I reported the severance amounts each week on my claim.

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Definitely file now! I made the mistake of waiting until my severance ended and lost out on weeks of benefits. Even if the severance reduces your UI payment to zero some weeks, you're still building your claim history and staying in the system.

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Good point about staying in the system. I'll file this week then.

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This is exactly right. Plus if your severance is less than your weekly benefit amount, you'll still get some UI money.

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I tried calling Washington ESD about this same question but couldn't get through to anyone after hours of trying. The phone system is absolutely terrible. Has anyone found a better way to reach them?

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I actually discovered this service called Claimyr that helped me get through to an Washington ESD agent. They have a system that keeps calling until they connect you. Check out claimyr.com - they even have a demo video at https://youtu.be/7DieNd3C7zQ showing how it works.

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Interesting, I'll check that out. I'm getting desperate trying to reach someone at Washington ESD.

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Never heard of that service but if it actually works I might try it too. Been calling for days.

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wait so if my severance is MORE than my weekly unemployment benefit, I get nothing from UI that week? That seems unfair since I paid into the system...

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That's correct. If your severance exceeds your weekly benefit amount, your UI payment for that week would be $0. But you should still file your weekly claim to keep your claim active.

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ugh that sucks but I guess it makes sense from their perspective

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The Washington ESD handbook explains this pretty clearly. Severance pay is considered earnings for the week it's received, regardless of what period it's supposed to cover. So weekly severance payments affect your benefits week by week.

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Where can I find this handbook? I want to read the official rules myself.

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It's on the Washington ESD website under the claimant handbook section. Really detailed info about all the rules.

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Just want to add - make sure you understand whether your severance is being paid weekly or if it's a lump sum spread over weeks. The timing of when you actually receive the money matters for reporting purposes.

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Mine is weekly payments, so I'll report it each week as I receive it.

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Yeah timing is everything with Washington ESD. They're very specific about when income was received vs when it was earned.

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I'm curious - does vacation payout work the same way as severance? I got both when I was laid off.

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Vacation pay is treated differently than severance. It's usually allocated to the period it would have been taken, not when you receive it. But you should definitely report it and let Washington ESD sort out how it affects your benefits.

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Thanks, that's helpful. This is all so confusing.

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Does anyone know if you have to do the job search requirements while you're receiving severance? I'm still looking for work but wondering about the official requirements.

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Yes, you still have to meet the job search requirements and report your work search activities on your weekly claims, even if you're getting severance pay. The requirements don't change based on other income.

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Got it, thanks. I've been applying anyway but wanted to make sure I was following the rules correctly.

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This thread is super helpful! I was worried I couldn't file for unemployment until my severance ended. Sounds like I should file now and just report the severance amounts accurately.

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Exactly! Better to file now and get what you can than to wait and lose out on potential benefits.

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Makes sense. I'll start my application tonight.

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One thing to keep in mind - if you get a lump sum severance payment, Washington ESD might spread it out over multiple weeks for benefit calculation purposes. I learned this the hard way when my claim was held up for weeks while they figured out the allocation.

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That sounds like a nightmare. How did you eventually get it resolved?

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Had to provide documentation about the severance terms from my employer. Took forever to get through to someone at Washington ESD to explain the situation.

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This is another situation where Claimyr could be helpful for getting through to an agent quickly to resolve documentation issues.

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What if my severance agreement says I can't work for a competitor? Does that affect my unemployment eligibility?

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Non-compete clauses don't typically affect UI eligibility as long as you're able and available for work in general. But if it significantly limits your job search, it could be an issue. You'd want to discuss this with Washington ESD.

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Good to know. I can still work in the industry, just not for direct competitors, so I think I should be fine.

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Been dealing with this for months. The key is keeping detailed records of all severance payments and when you received them. Washington ESD may audit your claim later and you'll need documentation.

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What kind of documentation do you recommend keeping?

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Pay stubs, bank statements, the severance agreement itself, and screenshots of your weekly claim submissions. Basically anything that shows when and how much you received.

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Has anyone had their severance end and then had issues with their UI claim continuing normally? I'm worried about gaps in benefits.

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As long as you keep filing your weekly claims throughout the severance period, there shouldn't be any gaps. The system should automatically adjust your benefit amounts as your other income changes.

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That's reassuring, thanks. I was stressed about having to refile or something.

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PSA: Don't try to hide severance payments from Washington ESD. They can and will find out through employer reporting and tax records. Better to be upfront and deal with reduced benefits than face an overpayment investigation later.

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This is so important! I know someone who got hit with a huge overpayment bill because they didn't report their severance correctly.

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Exactly. The penalties and interest on overpayments are no joke.

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Can I ask how much severance everyone is getting? I only got 2 weeks and feeling like I got shortchanged...

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It varies a lot by company and position. I got 4 weeks but I know people who got nothing. At least you got something!

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True, I guess I should be grateful for what I got.

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Thanks everyone for all the helpful info! This thread answered all my questions about severance and unemployment. Going to file my claim this weekend.

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Good luck with your claim! Remember to report everything accurately and you should be fine.

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Will do! Really appreciate everyone sharing their experiences.

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One last tip - if you're having trouble reaching Washington ESD with questions about how severance affects your specific situation, I had success using that Claimyr service someone mentioned earlier. Worth checking out if you need to talk to an actual person.

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I actually tried Claimyr after seeing it mentioned here and it worked great. Got connected to an agent within an hour instead of calling for days on my own.

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Might have to give that a try. I've been calling Washington ESD for weeks with no luck.

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This has been super educational. I had no idea you could collect UI while getting severance. Definitely going to file my claim now instead of waiting.

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Same here! This thread probably saved me from missing out on weeks of benefits.

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That's exactly why it's important to file right away. You never know what you're eligible for until you apply.

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Just wanted to add my experience - I was in a similar situation with 8 weeks of severance from a tech layoff. Filed for unemployment right away and it was the right call. Even though some weeks my UI benefit was reduced to almost nothing due to the severance amount, I still got partial benefits and stayed active in the system. The Washington ESD online portal makes it pretty straightforward to report your severance each week when you file your weekly claim. Don't overthink it - just be honest about what you're receiving and when you receive it. The system will calculate everything automatically.

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Thanks for sharing your experience! This is really helpful to hear from someone who actually went through it. I was worried about the process being complicated but it sounds like the online portal handles most of the calculations. Going to file my claim tomorrow morning.

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