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Leslie Parker

Can you file for unemployment if you receive a severance package - Washington ESD rules?

My company laid me off last week and I'm getting a severance package that covers 8 weeks of pay. I'm confused about whether I can file for Washington ESD unemployment benefits right away or if I need to wait until the severance runs out. The HR person wasn't clear and I don't want to mess anything up. Has anyone dealt with this situation before? I really need to know what Washington ESD considers when you have severance pay.

You can file for unemployment benefits immediately after being laid off, even with severance pay. However, Washington ESD will reduce your weekly benefit amount by the amount of severance you receive each week. So if your weekly benefit would normally be $400 and you're getting $600/week in severance, you won't get any unemployment benefits until the severance ends.

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Thanks! So I should file right away to get the process started? I don't want to wait 8 weeks and then have to deal with delays.

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Exactly. File now to establish your claim date. Your waiting week starts immediately and you'll be ready to receive benefits once the severance stops affecting your weekly amount.

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This is confusing because I thought any income disqualifies you from UI benefits. Are you sure about this?

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Severance is treated differently than wages. Washington ESD has specific rules about how severance affects benefits - it's not an automatic disqualification, just a reduction in weekly benefits.

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Good to know! I was worried I'd have to wait months to file when I get laid off next month.

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I went through this exact situation last year. Filed immediately and Washington ESD handled everything correctly. The key is being honest about the severance amount when you file your weekly claims. They'll calculate the reduction automatically.

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Did you have any issues with the calculation? I'm worried they might mess up the math.

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No issues at all. Just make sure you report the exact weekly severance amount when you file your claims. If you get a lump sum, they'll divide it by the number of weeks it's supposed to cover.

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I've been trying to get through to Washington ESD for weeks about a similar severance question but their phone lines are always busy. It's impossible to reach anyone there to get clarification on specific situations.

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Have you tried calling right at 8am when they open? That's usually the best time to get through.

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I've tried everything - calling at 8am, during lunch, different days. Nothing works. I just get disconnected after waiting for hours.

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I had the same problem until I found claimyr.com - they actually get you through to a Washington ESD agent. There's a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works. Saved me so much time and frustration.

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wait so if my severance is more than my unemployment benefit I get nothing until it runs out? that seems unfair

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That's correct. If your weekly severance exceeds your weekly benefit amount, you won't receive any unemployment benefits for that week. But you're still building credit toward your benefit year.

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ugh ok thanks for explaining it at least makes sense now

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Does this apply to all types of severance packages or just certain ones? My company is offering either a lump sum or monthly payments and I'm not sure which to choose.

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Washington ESD treats both the same way - they'll calculate the weekly equivalent regardless of how you receive it. Choose based on your personal financial needs, not unemployment benefits.

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That helps, thank you. I was worried one option would be better for unemployment purposes.

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I took the lump sum and just reported the weekly equivalent when filing my claims. Worked out fine and gave me more flexibility with the money.

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THE WHOLE SYSTEM IS BROKEN! I got laid off with severance and Washington ESD made me wait 3 months to get any benefits because they couldn't figure out how to calculate it properly. Bunch of incompetent bureaucrats!

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That sounds like there was some other issue with your claim. Severance calculations are pretty straightforward.

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No other issues! They just kept asking for more paperwork and putting my claim in adjudication for no reason. Nightmare experience.

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I'm in a similar boat - got laid off with 6 weeks severance. Already filed but haven't heard anything back from Washington ESD yet. Should I be worried?

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How long has it been since you filed? Initial claims can take 1-2 weeks to process, especially if they need to review your severance information.

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Filed about 10 days ago. Still shows 'pending' in my account. Getting anxious about it.

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That's normal timing. Mine took almost 2 weeks before I heard anything, and then everything went smoothly.

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Quick question - do I still need to do job searches while I'm receiving severance pay? The job search requirements are confusing enough without adding severance into the mix.

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Yes, you still need to complete your job search activities even during weeks when severance reduces your benefits to zero. Washington ESD requires 3 job search activities per week regardless of your benefit amount.

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Ok good to know. I'll keep doing the job searches then. Don't want to get disqualified later.

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This thread is super helpful! I was totally confused about how severance affects unemployment. Sounds like I should file right away when I get laid off next month.

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Definitely file immediately. Even if you don't get benefits right away because of severance, you'll have everything set up and ready to go.

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Perfect, thanks for the advice everyone!

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What happens if you get a new job before your severance runs out? Do you have to pay back any unemployment benefits?

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If you weren't receiving benefits because severance was reducing them to zero, there's nothing to pay back. If you were getting partial benefits, you just stop filing claims when you start the new job.

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Makes sense. I was worried about owing money back if I found something quickly.

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I'm getting conflicting information from different sources about this. Some say you can't file until severance ends, others say file immediately. Which is correct for Washington state?

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File immediately. Washington ESD is clear on this - severance affects benefit amounts, not eligibility to file. You want to establish your claim date as soon as possible after becoming unemployed.

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Thank you! I'll file this week then. Better to get it started rather than wait.

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Does vacation pay get treated the same way as severance? I'm getting both when I leave my job.

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Vacation pay is typically treated as wages and reported for the period it covers. Severance is handled differently. You'll need to report both accurately when filing your weekly claims.

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Got it. This is getting complicated but I appreciate the help!

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Anyone know if pension payments affect unemployment benefits the same way severance does?

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Pension payments have different rules than severance. Washington ESD may reduce benefits for pension income depending on the type and your contributions. That's a more complex situation.

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Thanks, I'll need to call them about my specific situation then.

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Good luck getting through! I mentioned earlier that I've been trying for weeks. The Claimyr service someone mentioned actually worked for me - finally got to talk to someone at Washington ESD about my severance questions.

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This whole severance calculation thing seems unnecessarily complicated. Why can't they just let you collect unemployment after you're laid off regardless of severance?

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The idea is that severance is meant to bridge the gap between jobs, similar to unemployment benefits. The system tries to avoid double-dipping on income replacement.

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I guess that makes sense from a policy perspective, even if it's frustrating for people who need the money.

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IMPORTANT: Make sure you keep detailed records of your severance payments! Washington ESD may ask for documentation during your claim review.

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Good point! What kind of documentation should I keep?

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Keep your separation paperwork, severance agreement, and any pay stubs showing the severance amounts. Also document the dates and amounts when you report them on your weekly claims.

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I just want to say thanks to everyone who answered questions in this thread. I was really stressed about how to handle my severance and unemployment filing, but now I feel much more confident about the process.

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You're welcome! We've all been through the unemployment process and know how confusing it can be. Good luck with your claim!

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Remember, if you run into issues reaching Washington ESD directly, that Claimyr service really does work well for getting through to agents. Worth keeping in mind if you need help.

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One last question - if my severance is paid out over 12 months instead of 8 weeks, does that change how Washington ESD handles it?

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The duration doesn't change the basic calculation - they'll still reduce your weekly benefits by the weekly severance amount. A 12-month payout just means the reduction lasts longer.

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Thanks! That's what I was hoping to hear. At least I know what to expect now.

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This has been the most helpful unemployment thread I've read! Bookmarking this for future reference.

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Same here! Really appreciate everyone sharing their experiences and knowledge about Washington ESD and severance pay.

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