Can you get severance and unemployment benefits in Washington - confused about eligibility

Do I report it all at once or spread it out over the weeks it would have covered?

Report the full amount when you receive it. Washington ESD will calculate how it affects your benefits based on their formula.

That's risky - if you reported incorrectly you could face an overpayment demand later. Better to get proper guidance upfront.

Yeah I know, I was just desperate to get some income coming in. Luckily it worked out okay but you're right.

I had similar issues reaching Washington ESD by phone until I found Claimyr (claimyr.com). They help you get through to actual agents instead of waiting on hold for hours. There's a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works.

How do I know which category mine falls into? The HR paperwork just says 'severance package'.

Look at the specific language in your severance agreement. Does it mention covering a specific time period or is it just a lump sum separation benefit? That distinction matters to Washington ESD.

Definitely not planning to hide it, just want to make sure I report it correctly the first time.

Good call. The overpayment notices are no joke and they charge interest too.

So if my severance equals 4 weeks of pay, I won't get any UI benefits for 4 weeks?

Not necessarily eliminated entirely, but significantly reduced. It depends on your weekly benefit amount versus the prorated severance amount per week.

This is exactly why I needed to talk to someone at Washington ESD directly when I had severance questions. Used that Claimyr service someone mentioned earlier and got through in like 10 minutes instead of calling all day.

Vacation pay is usually considered wages for services already performed, so it often delays your claim start date rather than reducing weekly benefits.

Wish I had known that distinction earlier. The whole system is unnecessarily complicated.

Mine would be paid about a week after my last day. Does that help or hurt?

Usually better because it's clearly separation pay rather than wages. But definitely confirm this with Washington ESD when you file your claim.

Yes, ongoing severance payments are treated as wages and will likely make you ineligible for UI benefits during the period you're receiving them.

That's what I was afraid of. Might need to negotiate for a lump sum instead.

Good point. I'll make sure to get a detailed breakdown from HR.

also keep records of when you actually receive the money not just when its promised

That's exactly why services like Claimyr exist. Sometimes you just need to talk to an actual person who knows the current rules instead of guessing from outdated website info.

Yeah, I should have done that from the start. Would have saved me a lot of stress.

What's the earnings disregard amount in Washington?

Currently it's the greater of $5 or 25% of your weekly benefit amount. So if your weekly benefit is $400, you can earn up to $100 before it affects your benefits.

True, $8000 is $8000 even if it delays my unemployment for a bit.

Exactly. And unemployment benefits extend your total benefit year anyway, so you're not really losing weeks.

Good catch. I think they're continuing my health coverage for 2 months as part of the package.

The health insurance continuation usually doesn't affect UI benefits, but report it anyway to be safe.

Non-competes shouldn't directly affect UI eligibility in Washington, but they might impact your job search requirements. You'll still need to be actively seeking work.

That makes sense. I can still apply for jobs outside my restricted industry.

That's reassuring. I was worried they'd just deny my claim if I mentioned the severance.

No, they expect people to receive severance. It's a normal part of layoffs. They just need accurate information to calculate your benefits properly.

You can definitely appeal if you think there's an error. You have 30 days from the determination notice to file an appeal. Just make sure you have documentation to support your position.

I have all the paperwork from my employer. Might be worth a shot.

Thanks everyone. This has been really helpful. I feel much more confident about handling this properly now.

good luck with everything! unemployment sucks but at least youll have some extra cushion with the severance

Will do. Better to over-communicate than under-communicate with these things.

Exactly right. Transparency is always the best policy with unemployment claims.

Is it expensive? I'm already tight on money with the layoff coming.

Much cheaper than the time and stress of calling Washington ESD dozens of times. Plus if you get incorrect information by guessing, it could cost you way more in overpayments later.

Definitely. I'm going to bookmark this thread for reference when I actually file my claim.

same here, wish this info was easier to find on the official washington esd website

This is really helpful - so even with severance you can still get some UI benefits each week, just reduced? I was worried it would be all or nothing. Did you have any issues with Washington ESD accepting your severance documentation or did they question how you reported it?

That's exactly what I needed to hear! I was panicking thinking I'd lose all my UI benefits for those weeks. So they basically spread out the impact rather than creating a total blackout period. Did you have to provide any specific documentation beyond what your employer gave you, or was the severance agreement sufficient for Washington ESD?

@Fatima Al-Maktoum Thanks for sharing your experience! This is exactly the kind of real-world example I needed. A couple follow-up questions if you don t'mind - when you say they divided your severance by your previous "weekly gross wages, was" that your actual weekly pay from your job or some other calculation? And did Washington ESD automatically do this calculation when you reported the severance, or did you have to figure out the proration yourself? I want to make sure I understand the process before I file my claim.

@Fatima Al-Maktoum This is super helpful, thank you! Quick question - when you reported the severance on your initial claim, did you report the full $6,000 amount or did you have to break it down somehow? I m'getting my severance about a week after my last day of work, so I m'wondering if the timing affects how I should report it to Washington ESD. Also, did they send you any kind of confirmation or explanation of how they calculated the proration, or did you just see it reflected in your weekly benefit amounts?

@Fatima Al-Maktoum This is really reassuring to hear from someone who actually went through it! I was imagining worst-case scenarios where I d'lose weeks of benefits entirely. A few quick questions: Did Washington ESD calculate the proration automatically once you reported the severance, or did you need to do any math yourself? Also, when you say dollar-for-dollar "reduction, does" that mean if the weekly severance portion was $300 and your UI benefit was $400, you d'get $100 that week? Just want to make sure I understand the mechanics before I file. Thanks for taking the time to share your experience!

@Fatima Al-Maktoum This is exactly the kind of detailed example I was hoping to find! Your situation sounds very similar to mine. When you say Washington ESD divided your severance by your previous "weekly gross wages -" did they use the wages from your W-2 or the wages you reported when you first applied for unemployment? Also, I m'curious about the timeline - did you receive your severance before or after you filed your initial UI claim? I want to make sure I get the sequence right so I don t'confuse their system. Really appreciate you sharing the specifics of how it actually worked out!

This is incredibly helpful @Dylan Wright! Your breakdown makes the process so much clearer. I was also terrified about the severance disqualifying me completely, so knowing that Washington ESD just reduces the weekly amount rather than cutting you off entirely is a huge relief. The fact that you still got $150/week even with the severance proration shows it's definitely worth taking both. Did you have any trouble getting through to someone at ESD to get this explanation, or did they walk you through it automatically when you filed? I'm planning to be completely upfront about my $8,000 severance from day one, but I'm still nervous about the phone system everyone mentions having issues with.

@Dylan Wright This is exactly what I needed to hear! Your real-world example with actual numbers makes everything so much clearer. I was definitely overthinking this and imagining worst-case scenarios. The fact that you still received $150/week shows that taking the severance is absolutely the right call financially. I m'curious about one thing - when you first reported the severance to Washington ESD, did you have to provide any specific documentation from your employer, or was it enough to just state the amount and timing? I want to make sure I have everything ready when I file my claim. Also, did the calculation happen automatically in their system once you reported it, or did you have to wait for someone to manually review and adjust your benefits? Thanks for sharing such detailed info - this thread has been a lifesaver!

@Leeann Blackstein This is such valuable advice, especially about reporting the severance when filing the initial claim rather than waiting until you receive it! I hadn t'thought about that timing aspect and can see how it would cause confusion in their system. Your experience with $7,500 over 4.5 weeks is really similar to what I m'expecting with my $8,000 package. It s'reassuring to hear from multiple people that the partial benefits approach is how Washington ESD actually handles it rather than the all-or-nothing scenario I was worried about. Did you have to provide specific documentation about what the severance covered, or was the amount and timing sufficient for their calculation? I want to make sure I have everything organized before I file. Thanks for the tip about keeping detailed records - I ll'definitely document everything from my employer about the payment terms and timing.

@Amy Fleming The same proration method applies regardless of the severance amount - I had a $15,000 package last year and Washington ESD handled it the same way everyone else described. They divided it by my weekly gross wages which worked out to about 6 weeks of coverage. During those weeks I still got partial UI benefits, just reduced by the weekly severance portion. The larger amount doesn t'change the calculation method, just means it might be spread over more weeks. Definitely report it upfront like others said - I learned that lesson the hard way when I delayed reporting mine initially. The phone system is frustrating but stick with it or try that Claimyr service people mentioned. You ll'definitely come out ahead taking both the severance and UI benefits even with the temporary reduction.

@Fatima Al-Hashemi This is super helpful information about the stock component! I was worried I d'have to somehow calculate the value of accelerated vesting and include it in the severance proration. Knowing that Washington ESD typically only looks at the cash portion for benefit calculations makes this much less complicated. I ll'definitely follow your advice about being completely transparent when filing - better to give them too much information than not enough. Did you have to provide any specific documentation about the stock options, or was it sufficient to just mention them when reporting? I want to make sure I have everything organized before I file my claim.