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Nalani Liu

Can you get Washington ESD unemployment if you get severance pay?

I just got laid off from my job and they're giving me a severance package worth about $8,000. I'm wondering if I can still file for unemployment benefits with Washington ESD or if the severance disqualifies me? The severance will cover about 6 weeks of my regular pay but I'm worried about what happens after that runs out. Has anyone dealt with this situation before?

You can still file for unemployment even with severance, but Washington ESD will likely delay your benefits until the severance period ends. They calculate it based on your weekly benefit amount - so if your severance equals 6 weeks of pay, you'd probably have a 6 week waiting period before UI kicks in.

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That makes sense. Should I file right away or wait until the severance runs out?

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File right away! The sooner you file, the sooner your claim gets processed. Even if there's a delay due to severance, you want to get in the system.

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same thing happened to me last year, got 4 weeks severance and had to wait before benefits started

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Did you have any issues getting approved after the waiting period ended?

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nope, went smooth once the severance period was over

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I had major problems getting through to Washington ESD to ask about this exact situation. Spent weeks calling and either getting busy signals or being on hold for hours just to get disconnected. Finally found this service called Claimyr (claimyr.com) that helped me get through to an actual agent. They have a demo video at https://youtu.be/7DieNd3C7zQ showing how it works. Saved me so much frustration trying to reach someone about my severance questions.

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How much does that service cost? Seems like we shouldn't have to pay extra just to talk to Washington ESD.

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I get the frustration, but honestly it was worth it for me. The alternative was spending days trying to get through on my own with no guarantee of reaching anyone.

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I might look into that if I run into problems. The Washington ESD phone system is notoriously difficult.

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BE VERY CAREFUL about how you report the severance on your weekly claims! Washington ESD wants to know the exact dates and amounts. If you mess this up, it can cause overpayment issues later. Make sure you have all the documentation from your employer about when the severance was paid and what period it covers.

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Good point. My HR department gave me a letter explaining the severance terms - should I keep that for my records?

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Absolutely! Keep everything. Washington ESD may ask for proof later, especially if your claim goes into adjudication.

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What's adjudication? I keep seeing that term but don't understand it.

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Adjudication is when Washington ESD reviews your claim for eligibility issues. It can happen if there are questions about your job separation, work search, or other factors.

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The system is SO BROKEN!!! Why should people have to wait for benefits just because their employer was decent enough to give severance? Makes no sense at all. Meanwhile people who get fired without severance get benefits right away. The whole thing is backwards!!!

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I understand the frustration, but the logic is that severance is meant to bridge the gap until you find new work, just like unemployment benefits.

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Still doesn't make it fair for people who are unemployed either way!

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wait so if I got a lump sum severance do they spread it out over weeks or count it all at once?

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Washington ESD typically spreads lump sum severance over the period it was intended to cover. So if you got $6000 as 6 weeks of severance, they treat it as $1000 per week for 6 weeks.

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ok that makes more sense than counting it all in one week

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I'm in a similar boat but also got vacation payout. Does that count the same as severance for Washington ESD purposes?

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Vacation payout is usually treated differently than severance. I'd definitely recommend calling Washington ESD to clarify, or using something like Claimyr to get through to an agent who can explain your specific situation.

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Vacation payout might not delay benefits the same way severance does, but you still need to report it on your weekly claims.

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Pro tip: Start your job search activities right away even during the severance period. Washington ESD requires job search documentation once your benefits start, so you'll want to have that ready to go.

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How many job searches do I need to do per week in Washington?

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It's typically 3 job search activities per week, but check the requirements on your claim. They're pretty specific about what counts.

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And keep detailed records! WorkSourceWA has tools to help track your job search activities.

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Does anyone know if COBRA payments affect unemployment eligibility? I'm trying to figure out all my benefits while on severance.

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COBRA payments don't affect your unemployment eligibility. Those are health insurance premiums, not income.

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Thanks, one less thing to worry about!

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The key thing is to file your initial claim as soon as possible after your last day of work. Don't wait for the severance to run out. Washington ESD will sort out the timing, but you want to get the process started.

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That's what I'm hearing from everyone. I'll file this week then.

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Smart move. The earlier you file, the earlier you'll start getting benefits once the severance period ends.

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Ev Luca

Had a friend who didn't report severance properly and ended up with a huge overpayment notice months later. Washington ESD found out through wage records and made him pay everything back plus penalties. Don't try to hide it!

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Yikes, definitely don't want that. I'll make sure to be completely honest on all my weekly claims.

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This is exactly why documentation is so important. Always better to over-report than under-report.

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Question about timing - if my severance officially ends on a Friday, can I start claiming benefits that same week or do I have to wait until the following week?

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You'd typically wait until the week after your severance ends to claim benefits for that week. The timing can be tricky though - worth confirming with Washington ESD.

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These timing questions are exactly why I ended up using Claimyr to talk to someone at Washington ESD. Much easier than trying to figure it out on my own.

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Make sure you understand whether your severance includes any non-compete restrictions that might affect your job search requirements.

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Good point - I do have a non-compete but it's pretty limited. Should I mention that when I file?

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It might be worth noting if it significantly limits your job search options in your field.

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been unemployed 3x in last 5 years and severance always delayed benefits but never prevented them completely, just fyi

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That's reassuring, thanks. Sounds like it's just a matter of timing.

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Remember that you can use the severance period to take care of things like updating your resume, setting up LinkedIn, and networking. Don't just wait around for benefits to start.

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True, might as well use the time productively. Thanks for all the advice everyone!

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And don't forget to file your taxes properly next year - both severance and unemployment benefits are taxable income.

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One more thing - if your severance includes stock options or other equity, that might be treated differently than cash severance. Worth asking Washington ESD about if that applies to you.

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Mine is just cash fortunately, but good to know for others who might have more complex packages.

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Yeah, complex severance packages definitely warrant a call to Washington ESD to get official guidance. That's another situation where Claimyr helped me avoid confusion.

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The bottom line is file ASAP, be completely honest about your severance, keep all documentation, and start job searching right away. You'll be fine!

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Perfect summary - thanks everyone for all the helpful advice!

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