Can you collect unemployment while receiving severance pay from Washington ESD?
I just got laid off from my tech job last week and they're giving me 8 weeks of severance pay. I want to file for unemployment benefits right away but I'm not sure if Washington ESD will approve my claim while I'm getting severance. The severance is being paid out weekly, not as a lump sum. Has anyone dealt with this situation before? Do I need to wait until my severance runs out to apply for UI benefits?
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Amara Nwosu
You can file your initial claim right away, but Washington ESD will likely reduce your weekly benefit amount based on your severance payments. They don't count severance as wages for eligibility purposes, but it does affect your weekly benefit calculation. The key is to report it accurately on your weekly claims.
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Liam O'Donnell
AuthorSo I should file now even though I'm getting severance? I don't want to mess up my claim by filing too early.
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Amara Nwosu
Yes, file now. The sooner you file, the sooner your benefit year starts. Just be honest about the severance on every weekly claim.
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AstroExplorer
I went through this exact situation last year. Washington ESD will deduct your severance from your weekly benefits dollar for dollar. So if your UI benefit is $500/week and you're getting $600 in severance, you won't get any unemployment that week.
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Liam O'Donnell
AuthorThat makes sense. Did you have any issues with adjudication because of the severance?
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AstroExplorer
Nope, as long as you report it correctly each week you shouldn't have problems. Just don't try to hide it.
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Giovanni Moretti
If you're having trouble getting through to Washington ESD to ask about this, I recently discovered Claimyr (claimyr.com). They helped me get connected to an actual agent to discuss my claim situation. There's a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works. Really saved me from sitting on hold for hours.
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Liam O'Donnell
AuthorHow much does that cost? I'm already worried about money with the job loss.
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Giovanni Moretti
It's worth checking out - they focus on just getting you connected rather than charging tons upfront. Way better than trying to call Washington ESD directly.
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Fatima Al-Farsi
Wait, I thought severance meant you couldn't get unemployment at all? This is confusing. I turned down severance from my last job because I thought it would disqualify me.
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Amara Nwosu
That's a common misconception. Severance doesn't disqualify you from unemployment, it just reduces your weekly benefit amount while you're receiving it.
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Fatima Al-Farsi
Ugh, I could have really used that severance money. Wish I had known this before.
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Dylan Cooper
Be very careful about how you report this. I made the mistake of not reporting my severance correctly and ended up with an overpayment notice for $2,800. Washington ESD doesn't mess around with unreported income.
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Liam O'Donnell
AuthorWhat exactly did you do wrong? I want to make sure I don't make the same mistake.
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Dylan Cooper
I reported it as 'other income' instead of severance pay. Apparently they're handled differently in the system.
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Sofia Perez
Did you have to appeal the overpayment or just pay it back?
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Dmitry Smirnov
The timing of when you receive severance matters too. If it's allocated over several weeks like yours, it's treated differently than a lump sum payment. Washington ESD has specific rules about this.
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Liam O'Donnell
AuthorMy severance is definitely weekly payments, same as my regular paycheck was. Does that make it easier to handle?
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Dmitry Smirnov
Yes, weekly severance is more straightforward to report than lump sums. Just treat each payment like regular wages when reporting.
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ElectricDreamer
I'm in a similar boat but my severance includes health insurance continuation. Does that count as income too or just the actual cash payments?
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Amara Nwosu
Only the cash portion counts as income for UI purposes. Health insurance benefits don't affect your weekly claim calculations.
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ElectricDreamer
That's a relief. The health insurance is worth like $400/month so I was worried about that too.
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Ava Johnson
Pro tip: keep detailed records of every severance payment you receive. Washington ESD might ask for documentation later, especially if your claim goes into adjudication for any reason.
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Liam O'Donnell
AuthorGood point. I'll make sure to save all my pay stubs and the severance agreement.
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Ava Johnson
Exactly. Having everything documented upfront saves headaches later if they need to verify anything.
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Miguel Diaz
Does anyone know if vacation pay counts the same as severance? My company is paying out my unused vacation days along with the severance.
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Amara Nwosu
Vacation payout is handled differently than severance. It's usually considered wages from your last week of work, not ongoing payments.
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Miguel Diaz
So I report the vacation pay for the week I actually stopped working, not spread out over multiple weeks?
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Amara Nwosu
Correct. Vacation payout gets reported for the specific week it represents, not when you actually receive the check.
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Zainab Ahmed
I had a nightmare experience trying to get Washington ESD on the phone to clarify this exact situation. Ended up using that Claimyr service someone mentioned earlier and actually got through to explain my severance situation properly.
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Liam O'Donnell
AuthorHow long did it take them to connect you? I'm starting to think I need help navigating this.
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Zainab Ahmed
Way faster than trying to call myself. The agent was able to look at my specific situation and explain exactly how to report the severance.
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Connor Byrne
Just want to add that you should also check if your severance agreement has any restrictions about filing for unemployment. Some companies try to include clauses about that, though I don't think they're enforceable in Washington.
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Liam O'Donnell
AuthorI'll have to read through my agreement again. I don't remember seeing anything like that but I'll double check.
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Dmitry Smirnov
Even if there is a clause like that, Washington state law generally allows you to file for UI regardless of what your severance agreement says.
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Yara Abboud
Wait so if my severance is more than my UI benefit amount, I basically get nothing from unemployment until the severance runs out?
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AstroExplorer
That's right. If your severance exceeds your weekly benefit amount, your UI payment for that week would be zero.
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Yara Abboud
That seems unfair. I'm still unemployed even if I'm getting severance.
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Amara Nwosu
The logic is that unemployment benefits are meant to replace lost wages, and severance is technically still wages from your former employer.
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PixelPioneer
Don't forget you still need to be doing your job search activities even during weeks when you're getting severance. Washington ESD still requires the job contacts.
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Liam O'Donnell
AuthorGood reminder. How many job contacts do I need per week currently?
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PixelPioneer
It's 3 job search activities per week in Washington. You'll need to log them in WorkSource WA even if you're not getting benefits that week due to severance.
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Keisha Williams
This whole system is so confusing. Why can't Washington ESD just have clearer guidance about common situations like this on their website?
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Paolo Rizzo
I know right? Every situation seems to have different rules and exceptions. Makes it really hard to do things correctly.
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Liam O'Donnell
AuthorAt least this thread is helping me understand what I need to do. Thanks everyone for sharing your experiences.
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Amina Sy
One more thing - make sure you understand the difference between severance and COBRA if your company offers both. They're handled completely differently for UI purposes.
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Liam O'Donnell
AuthorMy company mentioned COBRA but I haven't looked into it yet. How does that affect unemployment?
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Amina Sy
COBRA is just health insurance continuation - it doesn't count as income at all for Washington ESD purposes. Totally separate from your severance payments.
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Oliver Fischer
Has anyone had their severance payments cause issues with the job search requirement? Like can you start looking for work immediately or do you have to wait?
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PixelPioneer
You should start your job search immediately when you file your claim. Washington ESD doesn't care if you're getting severance - you still need to be available and actively seeking work.
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Oliver Fischer
Makes sense. I guess severance just gives you a little breathing room while you look, but you can't just sit back and wait for it to run out.
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Natasha Ivanova
The key takeaway here is file your claim right away, report your severance accurately each week, and keep looking for work. Don't overthink it - just be honest with Washington ESD about everything.
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Liam O'Donnell
AuthorThanks everyone. I'm going to file my claim today and make sure I report the severance correctly each week.
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Giovanni Moretti
Smart move. And if you run into any issues or need to talk to someone at Washington ESD, that Claimyr service really does help cut through the phone hassles.
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Liam O'Donnell
AuthorI'll keep that in mind if I need to call them. Hopefully the online filing goes smoothly though.
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