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Ryder Everingham

Can you get unemployment if you get severance pay in Washington State?

My company is laying me off next month and they're offering a severance package worth about 8 weeks of pay. I'm trying to figure out if I can still file for Washington ESD unemployment benefits while receiving this severance money. Does anyone know how Washington State handles this? I've heard conflicting information about whether severance affects your eligibility or if it just delays when you can start collecting benefits.

Yes, you can still get unemployment with severance pay in Washington, but there are specific rules about timing. The severance doesn't make you ineligible, but it might delay when your benefits start. Washington ESD calculates how long the severance would theoretically last you (based on your previous weekly wage) and that's how long you have to wait before benefits kick in.

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So if my severance equals 8 weeks of my regular pay, I'd have to wait 8 weeks before unemployment starts?

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Exactly! They divide your total severance by your weekly wage to determine the waiting period. Make sure to file your claim right away though, even during the waiting period.

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I went through this same situation last year. The key thing is to file your unemployment claim immediately when you're laid off, don't wait until after the severance runs out. Washington ESD needs to process everything and determine your waiting period. I made the mistake of waiting and it delayed everything even more.

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Did you have to report the severance amount when you filed?

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Yes, absolutely. They asked for the total amount and when I received it. Be completely honest about it or you'll have problems later.

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Just went through this exact situation! I was so frustrated trying to get through to Washington ESD to ask about my severance situation. Kept getting busy signals and when I did get through, I'd get disconnected. Finally used claimyr.com and they got me connected to an actual person who explained everything clearly. There's even a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works. Game changer for actually talking to someone at Washington ESD.

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I've never heard of that service. Did they charge you a lot?

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They focus more on getting you connected than the cost. Worth it when you need actual answers about complex stuff like severance calculations.

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I've been trying to call Washington ESD for weeks about my own severance question. Might have to check this out.

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WAIT - I thought ANY income made you ineligible for unemployment?? This is news to me. Are you sure about this severance thing? I turned down a severance package thinking it would mess up my unemployment.

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No, that's a common misconception! Severance is treated differently than regular wages. You should have taken that package!

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UGH. I'm kicking myself now. The deadline to accept has passed.

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Call your HR department anyway, sometimes they'll make exceptions if you explain the misunderstanding.

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There's also the question of HOW the severance is paid out. If it's a lump sum vs. paid out over time, that can affect the calculation. Washington ESD looks at when you actually receive the money, not when it was earned.

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Mine would be a lump sum. Does that make it better or worse?

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Lump sum is usually simpler to calculate. They just divide the total by your weekly wage to get the number of weeks you have to wait.

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I'm confused about vacation pay too. Is that treated the same as severance? My company owes me 3 weeks of unused vacation when I get laid off.

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Vacation pay is actually treated differently than severance. It's considered wages for time already worked, so it might not delay your benefits the same way.

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This is getting complicated. I need to talk to someone at Washington ESD directly.

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That's exactly why I ended up using Claimyr - too many nuances to figure out on your own.

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Does anyone know if the severance waiting period counts toward your total benefit weeks? Like if I have to wait 8 weeks, do I lose 8 weeks of benefits or do they extend the claim?

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Good question. The waiting period doesn't reduce your total benefit amount, but it does push back when you start collecting. Your benefit year is still the same length though.

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So theoretically I could end up collecting benefits later into the following year?

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Just want to add - make sure you're still doing your job search requirements during the severance waiting period! I almost got in trouble because I thought I didn't need to since I wasn't collecting benefits yet.

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Wait, you have to job search even when you're not getting paid benefits?

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Yes! As long as your claim is active, you need to meet the work search requirements. Keep track of everything.

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This seems overly bureaucratic but good to know.

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What if you get a new job during the severance waiting period? Do you have to pay back the unemployment benefits you would have gotten later?

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If you find work before your benefits would have started, you just close your claim. No payback needed since you never collected anything.

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That makes sense. Thanks for clarifying!

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The Washington ESD website has a severance calculator tool somewhere, though I can never find it when I need it. Has anyone used that?

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I looked for that but couldn't find anything current. Their website is not great.

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I think they removed it. Everything redirects to the general unemployment page now.

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My advice: document EVERYTHING about your severance. Keep copies of the agreement, payment stubs, everything. If there's ever a question later, you'll want proof of exactly what you received and when.

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Good point. I'll make sure to keep all the paperwork organized.

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Also screenshot your online account showing the severance waiting period calculation. Sometimes their system glitches.

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Can confirm the filing immediately part is crucial. I waited thinking I should wait until after severance ended and it created a gap in my claim that took forever to sort out with Washington ESD.

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How long did it take to fix?

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About 6 weeks of back and forth, including multiple calls. Not worth the hassle.

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One thing to watch out for - if your severance includes continuation of benefits like health insurance, that might affect things too. I'm not 100% sure how, but it's worth asking about.

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Health insurance continuation shouldn't affect unemployment eligibility, but it's good to mention it when you file just to be safe.

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Better safe than sorry with Washington ESD rules.

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This thread has been super helpful! I'm in a similar situation and was worried about taking the severance. Sounds like I should definitely take it and just plan for the waiting period.

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Same here! At least now I know what to expect.

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Glad this helped clarify things for people. Severance situations are confusing but totally manageable once you understand the rules.

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Has anyone dealt with partial severance? Like if they pay out some vacation time but not a full severance package?

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Any payment related to your employment ending gets evaluated. Even partial amounts can create short waiting periods.

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Makes sense. I'll make sure to report everything accurately.

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Quick question - do signing bonuses from a NEW job affect unemployment if you're still in the severance waiting period from your OLD job?

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If you start a new job, you'd typically close your unemployment claim regardless of where you are in the waiting period.

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Right, that makes sense. Just wanted to make sure there weren't weird interactions.

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For anyone still reading this - I used that Claimyr service someone mentioned earlier and it really did help me get through to Washington ESD quickly. Worth checking out if you're stuck trying to reach them about severance questions.

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Thanks for the follow-up! I might end up needing that.

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Same, bookmarking this thread for future reference.

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Final thought - even with all this good info, every situation is a bit different. When in doubt, talk to Washington ESD directly rather than guessing. The consequences of getting it wrong aren't worth it.

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Absolutely. This thread gave me a great starting point but I'll definitely confirm everything with them directly.

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Smart approach. Better to be safe than deal with overpayment issues later.

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