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Sophie Footman

Can you collect unemployment if you got a severance package in Washington state?

My company just laid me off after 6 years and gave me a severance package worth about 8 weeks of pay. I'm wondering if I can still file for Washington ESD unemployment benefits or if the severance disqualifies me? The severance is being paid out in a lump sum next week. I've never filed for unemployment before so not sure how this works with severance pay.

You can usually still file for unemployment even with severance, but it might affect when your benefits start. Washington ESD treats severance differently depending on how it's structured. If it's a lump sum, they typically calculate how many weeks it represents and delay your benefits accordingly.

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So I should still apply right away even though I got the severance? I don't want to mess anything up.

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Yes, definitely apply immediately. The clock starts ticking on your benefit year regardless of severance. Better to have your claim in the system.

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I had this exact situation last year. Got 10 weeks severance and Washington ESD delayed my benefits for exactly 10 weeks. But you still need to file your weekly claims during that waiting period or you'll lose those weeks permanently.

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Wait, you have to keep filing weekly claims even when you know you won't get paid because of severance??

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Yep, that's the confusing part. You file weekly claims but get $0 until the severance period ends. If you don't file, those weeks are gone forever.

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This is so complicated. How do they even know about the severance? Do I have to report it?

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You absolutely must report the severance when you file your initial claim. Washington ESD will find out anyway when they verify your employment, and not reporting it could be considered fraud. Be honest about the amount and how it's being paid.

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This! Don't try to hide severance payments. I know someone who got in trouble for not reporting theirs upfront.

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Definitely planning to report it. Just trying to understand the process before I file.

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If you're having trouble reaching Washington ESD to get clarity on your specific situation, I used a service called Claimyr that helps you actually get through to speak with an agent. You can check it out at claimyr.com - they have a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works. Really helped me get my severance questions answered directly from Washington ESD staff.

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How much does something like that cost? Seems like you shouldn't have to pay to talk to unemployment.

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I was frustrated with the phone system too, but it was worth it to get accurate info about my specific severance situation rather than guessing.

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The key thing is understanding whether your severance is considered wages in lieu of notice or actual severance pay. Washington ESD treats them differently. Wages in lieu of notice might be handled as regular wages, while true severance creates the waiting period.

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How can I tell which type mine is? My termination letter just says 'severance payment.

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You'll need to check with HR about the specific terms. If it's meant to cover a notice period you didn't work, that's wages in lieu. If it's additional compensation beyond your last day, that's typically severance.

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The distinction matters a lot for timing your benefits. Definitely worth clarifying with your former employer.

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been there done that, got 6 weeks severance and had to wait 6 weeks for UI to start but you gotta keep filing those weekly claims or youll lose em

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Thanks, good to know I'm not the only one dealing with this situation.

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One thing to watch out for - if your severance includes continuation of health benefits, that might also affect your claim. Washington ESD considers the value of continued benefits as part of the severance calculation in some cases.

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Oh great, another complication. My severance does include COBRA payment for 3 months.

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Definitely mention that when you file. They'll tell you if it affects your waiting period calculation.

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Better to over-report than under-report when it comes to severance details.

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I'm going through something similar right now. Filed my claim two weeks ago with severance info and still waiting to hear back from Washington ESD about when my benefits will actually start. The uncertainty is killing me.

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How long did they say it would take to process?

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They said 4-6 weeks for adjudication when severance is involved. Still waiting...

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That's exactly why I ended up using Claimyr - the waiting and uncertainty was too stressful. Being able to actually talk to someone at Washington ESD made a huge difference.

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THE SYSTEM IS SO BROKEN!!! Why should people who got laid off have to wait even longer for benefits just because their employer was decent enough to give severance? Makes no sense!!

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I get the frustration but the rule exists to prevent double-dipping. If you're getting paid for weeks you're not working, unemployment shouldn't pay for those same weeks.

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Still doesn't make it less frustrating when you're trying to figure out how to pay rent!

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Pro tip: start your job search immediately even during the severance waiting period. Washington ESD requires job search activities once benefits start, and having a head start helps. Plus you might find something before benefits even kick in.

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Good point. I was planning to take a couple weeks to decompress but probably should start looking right away.

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Exactly. Use the severance time wisely - update your resume, network, apply to jobs. The market moves fast these days.

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Question about the weekly claim filing during severance - do you have to do the job search requirement during those weeks too or only after benefits start?

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Job search requirements typically start when you begin receiving benefits, not during the severance waiting period. But it's worth confirming when you file.

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That's what I was told too. No job search requirement during the severance delay period.

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My brother went through this and said the hardest part was the waiting period calculation. Washington ESD divides your severance by your weekly benefit amount to determine how many weeks to delay, but sometimes their math seems off.

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What did he do about it? Can you appeal their calculation?

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He had to call and explain the severance terms more clearly. Turned out they misunderstood how it was structured.

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Just want to add that if you're getting severance paid out over multiple paychecks instead of lump sum, the rules might be different. Each paycheck might be treated as wages for that specific week.

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Mine is lump sum next week, but good to know for others reading this.

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Yes, the payment structure makes a big difference in how Washington ESD handles it.

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whatever you do dont let washington esd intimidate you, if youre not sure about something keep asking questions until you get a clear answer, ive seen too many people get screwed because they were afraid to speak up

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Thanks for the encouragement. I'm definitely going to be persistent about getting clear answers.

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The whole severance situation reminds me of when I got laid off from Boeing three years ago. Different circumstances but similar confusion about how benefits work. The unemployment system really needs better communication.

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At least now there are resources like this forum to get advice from people who've been through it.

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True, though nothing beats talking to an actual Washington ESD representative who can look at your specific case.

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I used Claimyr last month when I had severance questions and it was honestly a game changer. Being able to get through to Washington ESD immediately instead of calling 100 times was worth every penny. The agent explained exactly how my severance would affect my claim timeline.

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I'm definitely considering it if I can't get through to them directly. Sounds like it saves a lot of headache.

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I might try it too. I've been calling for days with no luck.

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Don't forget that your severance might push you into a higher tax bracket for the year. Make sure to set aside money for taxes - learned that lesson the hard way.

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Ugh, didn't even think about the tax implications. Thanks for the heads up.

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Yeah, especially if it's all paid in one year. Might want to talk to a tax professional.

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Bottom line: file your claim immediately, report the severance honestly, keep filing weekly claims even during the waiting period, and be patient with the process. It's confusing but manageable if you follow the rules.

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Perfect summary, thanks! I feel much more confident about filing now.

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Exactly right. The key is being proactive and honest throughout the process.

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Good luck OP! The severance situation is confusing but you'll get through it. Just remember that thousands of people deal with this same issue - you're not alone in figuring it out.

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Thank you everyone for all the helpful advice. I'm going to file my claim this week and report everything honestly.

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Just wanted to add something important that hasn't been mentioned yet - when you report your severance to Washington ESD, make sure you have all the documentation ready. They'll likely ask for your separation notice, severance agreement, and details about exactly what the payment covers. Having everything organized upfront will help speed up the adjudication process. Also, if your severance includes any stock options or deferred compensation, those might be treated differently, so mention those too if applicable.

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