Can you collect unemployment with a severance package from Washington ESD?

You can still file for unemployment even with a severance package. The key thing is HOW the severance is structured. If it's paid as a lump sum or if there are no strings attached (like non-compete clauses), it usually won't affect your weekly benefits. But if it's considered wages for a specific period, that could delay your eligibility.

I had this exact situation last year! My company gave me 6 weeks severance and I was still able to collect unemployment. The important thing is whether you're required to do any work during the severance period. If not, you should be good to go.

You should definitely file your claim right away regardless of the severance. The worst thing you can do is wait because you can't backdate benefits in most cases. When you file your weekly claims, report the severance payments honestly and let Washington ESD make the determination.

I was struggling to get through to Washington ESD to ask about my severance situation and found this service called Claimyr (claimyr.com) that helped me actually reach an agent. They have a video demo at https://youtu.be/7DieNd3C7zQ showing how it works. Finally got my questions answered about how my severance would be handled.

does severance count as wages tho?? i thought it was just like a goodbye payment or whatever

From what I understand, if the severance is paid in lieu of notice (like if they let you go immediately instead of giving you 2 weeks notice), it might be treated differently than if it's just a general severance payment. The timing and reason matter.

I'm going through something similar right now. Filed my claim two weeks ago and just got my first severance payment. Reported it on my weekly claim and now my status shows 'under review'. Guess I'll find out how they handle it.

THE SYSTEM IS SO BROKEN!! Why should someone who got laid off through no fault of their own have to jump through hoops just because their employer tried to do the right thing with severance?? This is exactly why people hate dealing with government agencies.

File immediately and be honest about everything. The adjudication process exists to figure out these complicated situations. Don't try to hide the severance because that will just cause bigger problems down the road.

Quick question - do you have to pay taxes on severance if you're also collecting unemployment? Seems like that could put you in a higher tax bracket.

I used to work in HR and dealt with this a lot. The main thing Washington ESD looks at is whether you're performing any services during the severance period and whether the payments are tied to specific weeks. If you're truly separated and not doing any work, you have a strong case for benefits.

Another option if you can't get through to Washington ESD is to try that Claimyr service someone mentioned earlier. I used it last month when I had questions about my standby claim and it actually worked. Finally talked to a real person who could explain my specific situation.

Make sure you keep all documentation about your severance agreement. If there's any dispute later, you'll want to have everything in writing to show Washington ESD exactly what was agreed to.

honestly just file and see what happens. i overthought my situation for weeks and it turned out fine. the worst they can do is say no and then you appeal if you disagree

One more thing to consider - if your severance payments will take you over the maximum weekly benefit amount when combined with unemployment, you might not get any UI benefits during those weeks anyway. The calculation gets complicated but it's something to keep in mind.

UPDATE: Just wanted to share that I had a similar situation and Washington ESD ruled that my severance didn't affect my benefits because it was a true separation with no work required. Every case is different but there is hope!

For anyone reading this later - the key factors seem to be: 1) Are you required to work during severance period? 2) Is it structured as wages or a lump sum? 3) Are there strings attached like non-compete agreements? These all affect how Washington ESD treats it.

If anyone needs to actually talk to Washington ESD about their severance situation, I had success with that Claimyr service too. Much better than the endless busy signals. Sometimes you just need to hear it directly from an agent.

Final thought - even if your severance temporarily affects your benefits, you should still file your claim to establish your benefit year. You can always reopen it later when the severance period ends.

Thanks everyone for all the advice! This thread has been really helpful. I feel much more confident about filing my claim now.