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Giovanni Ricci

Can you collect unemployment if you receive a severance package in Washington?

My company is laying me off next month and offering a severance package worth about $8,000. I'm wondering if I can still file for unemployment benefits with Washington ESD while receiving this severance? The HR person wasn't sure and told me to check with ESD directly, but I figured I'd ask here first. Has anyone dealt with this situation before? I don't want to mess up my claim by not reporting it properly.

Yes, you can usually collect unemployment even with severance, but it depends on how the severance is structured. If it's a lump sum payment for past work, it typically won't affect your weekly benefits. However, if it's designed to continue your pay for a specific period, Washington ESD might consider that as wages and it could delay your claim start date.

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It's a lump sum payment, not spread out over time. Does that make a difference in how I report it?

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Lump sum is generally better for UI purposes. You'll need to report it when you file your initial claim, but it shouldn't affect your weekly benefit amount.

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I got severance last year and was able to collect unemployment right away. The key is being honest about it on your application. Washington ESD will review it during the adjudication process and determine if it affects your benefits.

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How long did your adjudication take? I'm worried about delays if I mention the severance.

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Mine took about 2 weeks, which is pretty normal. Don't try to hide the severance - that'll cause way bigger problems later.

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The important thing is understanding what type of severance it is. If your employer is calling it 'pay in lieu of notice' or if it covers a specific time period, that's different than a one-time separation payment. Check your severance agreement for the exact wording.

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The paperwork says 'separation payment' but I should double-check the exact language. Thanks for the tip!

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This is exactly right. The wording in your severance agreement is crucial for how Washington ESD will treat it.

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I had such a hard time getting through to Washington ESD to ask about my severance situation. Spent hours on hold trying to get clarification. Finally found this service called Claimyr (claimyr.com) that helps you actually reach an ESD agent. They have a demo video at https://youtu.be/7DieNd3C7zQ showing how it works. Made the whole process so much easier.

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Never heard of that before. Did they actually help you get through?

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Yeah, got connected to an agent within like 20 minutes instead of calling for days. Totally worth it when you need answers about complicated stuff like severance.

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whatever you do dont lie about it on your claim thats fraud and theyll make you pay everything back plus penalties

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Definitely planning to be completely honest about it. Just want to make sure I understand the rules first.

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Good approach. Washington ESD has gotten much stricter about overpayments in recent years.

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The $8,000 amount might matter too. I think there are different rules depending on how much severance you get, but I'm not 100% sure on the details.

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The amount itself doesn't change the rules, but it might affect the timeline if it's considered wages for a specific period.

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Yeah the dollar amount isn't the issue, it's all about what the severance represents and how it's paid out.

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I got confused about this same thing when I was laid off. My severance was called 'continuation pay' and it delayed my unemployment start date by 6 weeks. Make sure you understand exactly what yours is classified as.

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That's exactly what I'm worried about! Did you eventually get benefits after the 6 weeks?

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Yes, once the continuation period ended, my benefits started normally. Just had to wait it out.

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This is why the exact wording in your severance agreement is so important to review carefully.

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Don't stress too much about it. Most people with severance can still get unemployment. Just be upfront about it when you file and let Washington ESD make the determination.

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Agreed, transparency is always the best policy with these claims.

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Thanks, that's reassuring. I'll make sure to include all the details when I file.

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You should also keep in mind that even if your severance doesn't affect your initial eligibility, you'll still need to meet all the other requirements like job search activities and filing your weekly claims on time.

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Good point. I've been reading up on the job search requirements - looks like I need to do 3 activities per week?

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That's right, and make sure to keep detailed records in your job search log. Washington ESD can audit those anytime.

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Had a friend who didn't report his severance and got caught during an audit. Ended up owing back like $15,000 in overpayments. Not worth the risk.

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Yikes, that's scary. How did they find out?

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Washington ESD cross-references with employer wage reports. They eventually catch unreported income.

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I used Claimyr too when I had questions about my separation pay. The agents were able to explain exactly how Washington ESD would handle my specific situation. Saved me a lot of worry and confusion.

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How much does that service cost?

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I don't remember the exact cost but it was worth it to get clear answers instead of guessing. Check their website for current pricing.

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Make sure you also understand if your severance includes any benefits continuation like health insurance. That might affect other aspects of your claim.

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Good point, it does include COBRA coverage for 3 months. I don't think that affects unemployment though?

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COBRA itself doesn't affect UI benefits, but it's good to know all the pieces of your severance package.

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The timing of when you receive the severance might matter too. If you get it before your last day of work versus after, Washington ESD might treat it differently.

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They said I'll get it on my last day of work. Does that make a difference?

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It can, but the more important factor is still what the severance represents - payment for past work or continuation of wages.

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this whole system is so confusing why cant they just make it simple

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I feel the same way sometimes, but at least there are resources to help figure it out.

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The rules exist to prevent abuse, but I agree they could be clearer for honest claimants.

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One more thing to consider - if your company is doing mass layoffs, there might be specific WARN Act requirements that could affect how your severance is handled. Worth asking HR about.

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It's only about 20 people being laid off, so probably not a WARN situation, but I'll ask just to be sure.

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Bottom line is you can almost certainly collect unemployment with severance, you just need to report it correctly. Washington ESD deals with this situation all the time.

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Thanks everyone for all the helpful advice! I feel much more confident about filing my claim now.

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Good luck with everything! Hope your claim goes smoothly.

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If you do run into issues or need to talk to someone at Washington ESD about your specific situation, definitely consider using Claimyr. The regular phone lines are still pretty backed up and it's frustrating trying to get through.

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Agreed, having someone who can actually get you connected makes such a difference when you have complex questions.

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Keep copies of all your severance paperwork too. You might need to provide documentation to Washington ESD during the claims process.

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Will do! I'm keeping a folder with all my layoff-related documents.

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Update us on how it goes when you file! Always helpful to hear how these situations actually play out.

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Definitely will. Hopefully it'll be straightforward but I'll let you know if there are any surprises.

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One last tip - when you do file, be as specific as possible about the severance in your application. Don't just say 'severance pay' - explain exactly what it is and when you received it.

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Great advice, specificity is probably better than being vague. Thanks again everyone!

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