Can you collect unemployment with severance pay in Washington ESD?
My company is laying me off next month and offering a severance package of about $8,000. I want to file for unemployment right away but I'm not sure if the severance will affect my benefits or if I need to wait until it runs out. Has anyone dealt with this situation in Washington? Do I report the severance when I file my weekly claims?
48 comments


Ava Rodriguez
You can usually collect unemployment while receiving severance, but it depends on how your company structures the payment. If it's a lump sum vs weekly payments makes a difference.
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Dmitry Popov
•It's being paid out as a lump sum when I leave. Does that make it better or worse for unemployment?
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Ava Rodriguez
•Lump sum is generally better because Washington ESD typically doesn't count it as ongoing wages. But you still need to report it on your initial application.
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Miguel Ortiz
I went through this exact situation last year. Yes, you can collect unemployment with severance pay in Washington. The key thing is HOW the severance is paid. If it's a lump sum for past work, it usually doesn't affect your weekly benefit amount. If it's structured as continued wages, that's different. You definitely need to report it when you file your claim though.
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Dmitry Popov
•That's really helpful! So I report it on the initial application but then it shouldn't affect my weekly claims after that?
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Miguel Ortiz
•Exactly. Report it upfront when you first file, but if it's truly severance for past work and not continued employment, it shouldn't reduce your weekly benefits going forward.
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Zainab Khalil
The Washington ESD has specific rules about severance pay. Generally speaking, severance payments don't disqualify you from unemployment benefits, but they may affect the timing of when you can start collecting. If the severance is considered 'wages in lieu of notice' then it might delay your claim start date. I'd recommend calling Washington ESD directly to get clarification on your specific situation.
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Dmitry Popov
•I've been trying to call but can never get through! The phone system just hangs up on me after being on hold forever.
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QuantumQuest
•Oh man, I feel your pain on trying to reach Washington ESD by phone! I was in the same boat a few months ago until someone told me about claimyr.com. It's a service that helps you get through to ESD agents automatically. They have a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works. Saved me hours of frustration!
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Dmitry Popov
•Interesting, I've never heard of that before. Does it actually work?
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QuantumQuest
•Yeah it worked great for me. Got connected to an agent in about 20 minutes instead of spending all day trying to call.
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Connor Murphy
wait im confused about this whole severance thing. if they're paying you money how can you also get unemployment?? seems like double dipping
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Miguel Ortiz
•It's not double dipping. Severance is compensation for past work you already did. Unemployment is insurance for being out of work going forward. They're completely different things.
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Connor Murphy
•oh ok that makes more sense when you put it that way
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Yara Haddad
Just want to add that you should definitely file for unemployment right away, don't wait for the severance to run out or anything like that. The sooner you file the sooner your waiting week starts. Even if there's some complication with the severance, you want to get the process started.
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Dmitry Popov
•Good point about filing right away. I was thinking about waiting but you're right, might as well get the ball rolling.
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Keisha Robinson
I'm going through something similar right now actually. Got laid off 2 weeks ago with a small severance and my unemployment claim is still pending. Haven't heard anything back from Washington ESD yet.
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Dmitry Popov
•How long have you been waiting? I'm worried about delays in processing.
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Keisha Robinson
•About 2 weeks now. No updates on my account at all. Getting pretty anxious about it.
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Zainab Khalil
•Two weeks isn't unusual for initial processing, especially if there are any complications like severance pay that need to be reviewed. Keep checking your account for any requests for additional information.
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Ava Rodriguez
One thing to be careful about - make sure you understand exactly what your severance package includes. Sometimes companies bundle things together that might be treated differently by Washington ESD (like vacation payout vs actual severance vs COBRA payments).
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Dmitry Popov
•That's a really good point. I should probably review the paperwork more carefully to see exactly what's included.
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Paolo Conti
ugh the whole unemployment system is so confusing. why cant they just make it simple - you lose your job, you get benefits. all these rules about severance and wages and reporting requirements just make everything harder
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Miguel Ortiz
•I hear you, the system can definitely be overwhelming. But the rules exist to prevent fraud and make sure benefits go to people who actually qualify. It's worth taking the time to understand them.
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Paolo Conti
•i guess but its still frustrating when youre already stressed about losing your job
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Amina Sow
Been on unemployment twice in the past 5 years and both times I had some form of severance. Never had any issues as long as I reported it accurately on my application. Washington ESD is pretty reasonable about it in my experience.
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Dmitry Popov
•That's reassuring to hear from someone with actual experience. Did you get your benefits right away or was there a delay?
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Amina Sow
•First time there was about a 3 week delay while they reviewed everything, second time was approved within a week. I think it just depends on how busy they are and if your case is straightforward.
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GalaxyGazer
Another option if you can't get through to Washington ESD on the phone is to try that Claimyr service someone mentioned earlier. I used it when I had questions about my job search requirements and it worked really well. Much better than spending hours trying to call.
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Dmitry Popov
•I might have to try that if I can't get answers through the normal channels. Thanks for the recommendation!
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Oliver Wagner
Make sure you keep all documentation about your severance package! Washington ESD might ask for proof of the amount and terms later. I learned this the hard way when they requested documents I didn't have organized.
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Dmitry Popov
•Good advice! I'll make sure to scan everything and keep copies in a folder.
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Natasha Kuznetsova
Does anyone know if severance affects the job search requirements? Like do you still have to do the 3 job searches per week even if you're getting severance?
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Zainab Khalil
•Yes, the job search requirements apply regardless of whether you're receiving severance. You still need to meet the work search requirements to maintain your benefits.
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Natasha Kuznetsova
•Thanks, that's what I figured but wanted to make sure.
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Javier Mendoza
just file the claim and be honest about everything. thats really all you can do. the system will figure out what you qualify for
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Dmitry Popov
•You're right, honesty is definitely the best policy with these things.
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Emma Thompson
I think the confusion about severance comes from people not understanding that unemployment benefits are insurance, not welfare. You paid into the system through your payroll taxes, so you're entitled to benefits when you lose your job regardless of severance.
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Malik Davis
•Exactly! It's not like you're asking for a handout, you literally paid for this insurance through your work.
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Isabella Santos
One more thing - if your severance is being paid out over multiple weeks rather than a lump sum, you might need to report it on your weekly claims. The rules are different for ongoing payments vs one-time payments.
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Dmitry Popov
•Mine is definitely a lump sum, but that's good to know for anyone else reading this thread.
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StarStrider
I had a friend who delayed filing for unemployment because she thought the severance would disqualify her. She ended up losing out on several weeks of benefits because of the waiting period. Don't make that mistake!
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Dmitry Popov
•Wow, that would be awful to miss out on benefits because of a misunderstanding. Thanks for sharing that cautionary tale.
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Ravi Gupta
For what it's worth, when I had this situation I found the Washington ESD website pretty helpful. They have a section about how different types of payments affect benefits. Might be worth checking out before you file.
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Dmitry Popov
•I'll definitely check that out. Always good to get information straight from the source.
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Freya Pedersen
Bottom line - yes you can collect unemployment with severance in most cases. Report it accurately, file right away, and don't stress too much about it. The system is designed to handle these common situations.
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Dmitry Popov
•Thanks everyone for all the helpful responses! I feel much more confident about moving forward with my claim now.
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Miguel Ortiz
•Glad we could help! Come back and let us know how it goes.
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