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Yuki Watanabe

Can you collect unemployment while getting severance pay from Washington ESD?

My company laid me off last week and I'm getting a severance package that pays out over 6 months. I want to file for unemployment benefits but I'm not sure if Washington ESD will approve my claim while I'm receiving severance payments. The severance is about $2,800 per month which is less than what I was making. Does anyone know if this affects my eligibility for UI benefits? I really need the extra income to cover my bills.

Severance pay can definitely affect your Washington ESD benefits but it depends on how it's structured. If it's paid as a lump sum vs. periodic payments makes a difference. You should still file your claim and report the severance when you do your weekly claims. Washington ESD will determine how it impacts your benefits.

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It's being paid monthly for 6 months. Do I report this every week when I file my weekly claim?

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Yes, you need to report any income including severance on your weekly claims. Be honest about the amounts and dates.

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I had a similar situation and Washington ESD initially denied my claim because of the severance. But after I appealed and explained that the severance wasn't for work performed, they approved it. The key is how the severance is classified - whether it's for work already done or just a separation benefit.

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How long did the appeal process take? I can't afford to wait months for benefits.

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About 6 weeks total. It was frustrating but worth it in the end.

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Just went through this exact situation! If you're having trouble getting through to Washington ESD to ask about your specific case, I found this service called Claimyr that helped me reach an actual agent. They have a website at claimyr.com and there's a demo video at https://youtu.be/7DieNd3C7zQ showing how it works. Really saved me hours of calling and getting busy signals.

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Thanks! I've been trying to call for days with no luck. What did the agent tell you about severance?

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They explained that severance doesn't automatically disqualify you but it might reduce your weekly benefit amount depending on how much you receive.

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Never heard of Claimyr before but if it actually gets you through to Washington ESD I might try it. Their phone system is impossible.

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The general rule is that severance pay is considered income for unemployment purposes, but there are exceptions. Washington ESD looks at whether the severance is payment for work already performed or just a dismissal benefit. If it's truly severance (not vacation payout or back wages), it typically won't disqualify you but may reduce your weekly benefit amount.

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My severance agreement says it's for 'separation purposes' not for work performed. Does that help my case?

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That language sounds favorable. Make sure to bring a copy of your severance agreement if you need to speak with Washington ESD about it.

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ugh this is so confusing! I thought unemployment was for people who lost their jobs, why would they penalize you for getting severance? It's not like we chose to get laid off!

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I understand the frustration, but the system is designed to replace lost wages. If you're still receiving some income from your former employer, it affects the calculation.

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I guess that makes sense but $2,800 is way less than a full salary. Hope they take that into account.

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File your claim ASAP regardless of the severance situation. You can always appeal if they deny it initially. The longer you wait to file, the more potential benefits you lose forever.

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Good point. I'll file today and deal with the severance questions as they come up.

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Exactly. Washington ESD backpays to your filing date, not when you actually get approved.

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One more thing - make sure you're actively looking for work and documenting your job search activities. Even with severance, you still need to meet the work search requirements for Washington ESD benefits.

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How many job contacts do I need to make each week?

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It's 3 job search activities per week. You can log them in WorkSourceWA or keep your own records.

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Just be careful about what counts as a job search activity. Washington ESD is pretty specific about what they accept.

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I was in this exact situation 2 years ago. My severance was $3,200/month and Washington ESD reduced my weekly benefit by about 60%. Still got some unemployment but not the full amount. Better than nothing though!

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That's actually not too bad. Did you have to provide documentation of your severance payments?

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Yeah, I had to send them copies of my paystubs showing the severance amounts. They wanted to verify everything.

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Washington ESD is so backed up right now. Even if you file immediately, expect delays in processing. My cousin's been waiting 3 weeks just for his initial determination.

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That's terrifying. I need these benefits to start soon.

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This is exactly why I used Claimyr to get through to an agent. Sometimes you need to talk to a real person to speed things up.

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Just want to add that if your severance runs out before you find a new job, your unemployment benefits might increase to the full amount at that point. So don't give up on the process even if your initial benefits are reduced.

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That's encouraging. My severance is only for 6 months so hopefully I'll find something by then.

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Exactly. And if not, you'll have the full unemployment benefit as a safety net.

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Does anyone know if the severance needs to be reported as gross or net amount? My severance has taxes taken out.

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Report the gross amount before taxes. Washington ESD wants to know your total income, not what you take home.

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Thanks! I was worried I was doing it wrong on my weekly claims.

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Be prepared for Washington ESD to ask for your severance agreement. They'll want to see the exact terms and how the payments are structured. Having all your paperwork ready will speed up the process.

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Good advice. I'll scan everything so I can upload it if needed.

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Smart move. Digital copies make everything easier when dealing with Washington ESD.

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I'm dealing with severance and unemployment too. Washington ESD told me that vacation payout is different from severance - vacation counts as wages for time already worked, but true severance is treated differently. Make sure you understand which type of payment you're getting.

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Mine is definitely severance, not vacation payout. My vacation was paid separately.

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That should work in your favor then. Vacation payout would be more likely to affect your benefits.

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Whatever you do, don't try to hide the severance payments. Washington ESD has ways of finding out and fraud penalties are severe. Always be honest on your weekly claims.

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Absolutely. I'd rather get reduced benefits than risk fraud charges.

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Exactly the right attitude. Honesty is always the best policy with Washington ESD.

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Has anyone tried calling Washington ESD early in the morning? I heard they're less busy around 8 AM.

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I tried that and still couldn't get through. The whole system is overwhelmed.

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This is why services like Claimyr exist. Sometimes you need help getting through their phone system.

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Maybe I should look into that. I've been trying to call for weeks with no success.

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Just remember that even if your benefits are reduced due to severance, you're still building up work credits for future unemployment claims. Every week you're approved counts toward your benefit year.

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I hadn't thought about that. Good to know it's not completely wasted time.

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Exactly. Plus you're staying in the system in case your situation changes.

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Quick question - do I need to report my severance if it's a one-time lump sum payment? Or only if it's spread out over time?

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You need to report it either way, but the timing affects how Washington ESD applies it to your benefits. Lump sum might be allocated over several weeks.

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That makes sense. I'll make sure to report it properly when I file my claim.

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For what it's worth, I know several people who successfully collected unemployment while receiving severance. It's not automatic disqualification, just requires some extra documentation and patience with the process.

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Thanks for the encouragement. I was starting to think it was hopeless.

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Not hopeless at all! Just be prepared for some back and forth with Washington ESD to get everything sorted out.

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Final tip: keep detailed records of all your communications with Washington ESD about the severance issue. If you end up needing to appeal, having documentation of what you were told will be crucial.

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Great advice. I'll start a file with all my unemployment-related documents.

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Smart move. Organization is key when dealing with any government agency.

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I second this. Having good records saved me during my appeal process last year.

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