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Kristian Bishop

Can you collect unemployment while receiving severance in Washington ESD?

My company laid me off last month and I'm getting severance payments for the next 8 weeks. I'm wondering if I can still file for unemployment benefits with Washington ESD while receiving this severance? The severance is being paid out weekly, not as a lump sum. I don't want to mess up my claim or get in trouble for filing when I shouldn't. Has anyone dealt with this situation before?

You need to report the severance payments when you file your weekly claims. Washington ESD will reduce your benefits based on the amount you receive.

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Do you know how much they reduce it by? Is it dollar for dollar or a percentage?

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It's usually dollar for dollar reduction. If your weekly benefit amount is $400 and you get $300 in severance, you'd only get $100 in UI benefits that week.

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I went through this exact situation last year. You can file for unemployment but you MUST report the severance payments on your weekly claims. Don't try to hide it - Washington ESD will find out and you'll have to pay back any overpayments plus penalties.

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Thanks for the warning! Did you have any issues with your claim being delayed because of the severance?

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No delays on my end, but I was upfront about everything from the start. The key is being honest on your weekly claims.

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Actually had a nightmare with this situation. Spent months trying to get through to Washington ESD to clarify how to report my severance correctly. The phone lines are always busy and when you do get through, sometimes the agents give different answers. Finally found Claimyr (claimyr.com) which helped me get connected to an actual agent who could walk me through the process properly. They have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works.

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Never heard of Claimyr before. Is it legit? I'm desperate to talk to someone at Washington ESD about my severance situation too.

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Yeah it's legitimate. They basically help you get through the phone queue so you can actually talk to a real person at Washington ESD instead of getting hung up on or waiting on hold for hours.

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This might be exactly what I need. The Washington ESD website isn't super clear about severance reporting.

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just went thru this - you can collect but they subtract the severance from your weekly benefit amount. so if you get enough severance you might not get any UI benefits until the severance runs out

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That makes sense. My severance is pretty substantial so I might not get much in benefits until it's done.

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The Washington ESD system is SO confusing with this stuff. I made the mistake of not reporting my severance at first because I thought it was separate from wages. Got hit with an overpayment notice months later and had to pay everything back. Don't make my mistake!

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Oh no! How much did you have to pay back if you don't mind me asking?

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About $2,800 plus interest. It was awful. I'm still paying it back through my current UI benefits.

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This is exactly why I'm being so careful about reporting everything correctly. The penalties are no joke.

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One thing to keep in mind - if your severance is structured as continuation of salary vs. a lump sum payment, Washington ESD might treat it differently. Make sure you understand exactly how your company is categorizing the payments.

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Good point. I should probably check with HR about how they're classifying my severance payments.

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Yes, definitely get that clarification. Some companies pay severance as 'salary continuation' which can affect your UI eligibility differently than a straight severance payment.

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I'm in a similar boat but my severance is being paid as a lump sum next month. Does anyone know if that changes how Washington ESD handles it?

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Lump sum severance is usually allocated over the period it's meant to cover. So if you get $8,000 for 8 weeks, they'd treat it as $1,000 per week for 8 weeks.

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That's helpful to know. I was worried they'd just deduct the entire amount from one week's benefits.

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been dealing with washington esd for years and they're pretty strict about severance reporting. better to over-report than under-report imo

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Good advice. I'd rather be safe than sorry with this stuff.

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Another thing - make sure you're still doing your required job search activities even if your severance is reducing your benefits to zero. Washington ESD still requires you to look for work and document it.

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Oh wow, I hadn't thought about that. So even if I'm getting no money from UI because of the severance, I still need to do job searches?

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Exactly. You're still filing weekly claims, so you still need to meet all the eligibility requirements including job search.

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This is another area where talking to an actual Washington ESD agent helps. The online info doesn't always make this clear.

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I used Claimyr too when I had questions about how my severance package would affect my claim. Worth every penny to get accurate information directly from Washington ESD instead of guessing.

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I'm definitely going to check out Claimyr. This severance situation is more complicated than I thought.

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It really is. The Washington ESD website has basic info but every situation is a little different.

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question - does vacation pay count the same as severance? my company is paying out my unused vacation time

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Vacation pay is usually treated differently than severance. It's often considered wages from your last week of work, but you should definitely report it on your claim.

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thanks, i'll make sure to report it just to be safe

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The key thing is documentation. Keep records of exactly when you receive severance payments and how much. Washington ESD may ask for proof later.

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Good reminder. I'll make sure to save all my pay stubs and any documentation from my employer.

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Also remember that if you find a new job while still receiving severance, you need to report that too. Don't try to double-dip with severance, new job wages, and UI benefits.

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Definitely won't try to double-dip. The penalties seem way too harsh to risk it.

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Smart thinking. Washington ESD crosschecks with employers and the IRS, so they'll catch any unreported income eventually.

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Update: I called Washington ESD using that Claimyr service and got through to someone who explained my specific severance situation. Turns out my lump sum payment needs to be reported differently than I thought.

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That's great that you got clarity! I'm definitely going to use Claimyr too.

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See? That's exactly why it's worth it to talk to an actual agent instead of trying to figure it out from the website alone.

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washington esd is pretty good about working with you if you're upfront about everything. its when people try to hide stuff that they get in trouble

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Yeah, I'm definitely going to be completely transparent about my severance situation.

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One more tip - if your severance payments cross over into different quarters, make sure you understand how that affects your benefit calculation. Sometimes it can impact your weekly benefit amount.

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I hadn't thought about the quarterly aspect. My severance will run into the next quarter so I should probably ask about that too.

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Good catch. The timing of when wages are reported can definitely affect your UI calculation.

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honestly this whole process makes me nervous. feels like theres so many ways to accidentally mess up your claim

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I know exactly how you feel. That's why I made such a big mistake with my severance reporting. The system is confusing.

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That's exactly why services like Claimyr exist. Sometimes you just need to talk to someone who knows the system to make sure you're doing everything right.

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Final advice for OP: File your claim right away even if you think the severance might reduce your benefits to zero. You want to get your claim established and maintain your filing requirements. You can always stop filing later if you find work.

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Thank you! I'll file this week and make sure to report my severance payments accurately. This thread has been incredibly helpful.

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Good luck with your claim! The most important thing is being honest and consistent with your reporting.

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Agreed. And don't hesitate to get professional help if you need clarification on anything. Better safe than sorry with Washington ESD.

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Thanks everyone for all the advice! I feel much more confident about handling my severance situation now. Going to file my claim this week and make sure I report everything correctly.

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You're welcome! Feel free to come back and ask if you run into any issues.

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Good luck! And remember, if you need to talk to Washington ESD directly about anything, don't spend hours on hold - check out that Claimyr service.

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This was a really helpful thread. I learned some things about severance reporting that I didn't know before. Thanks to everyone who shared their experiences!

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Same here. It's nice to see people helping each other navigate this confusing system.

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yeah these forums are way more helpful than trying to figure out the washington esd website alone

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