Can you get unemployment with severance package in Washington state?
My company laid me off last week and gave me a severance package worth about $8,000 that will be paid out over 4 months. I'm wondering if I can still file for unemployment benefits in Washington while receiving this severance? I've heard different things and want to make sure I don't mess anything up with Washington ESD. The severance isn't requiring me to do any work, it's just compensation for my years of service. Has anyone dealt with this situation before?
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Ella Harper
Yes, you can typically receive unemployment benefits while getting severance pay in Washington. The key thing is whether the severance requires you to perform any work or has restrictions. Since yours sounds like a standard severance package with no work requirements, you should be eligible. Just make sure to report the severance payments when you file your weekly claims.
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Micah Franklin
•That's a relief! Do I need to report the full $8,000 amount when I first file, or just report each payment as I receive it?
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Ella Harper
•Report each payment as you receive it on your weekly claims. Don't report the full amount upfront.
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PrinceJoe
I had a similar situation last year. Got a $5,000 severance and was still able to collect unemployment benefits. Washington ESD doesn't count severance as wages if it's not tied to work performance. Just be honest about it on your weekly claims.
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Micah Franklin
•Good to know! Did it affect your benefit amount at all or just get deducted?
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PrinceJoe
•It didn't reduce my weekly benefit amount, but the severance payments did get deducted from what I received that week. So if my UI was $400 and I got $500 in severance, I'd get $0 from unemployment that week.
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Brooklyn Knight
Actually, I've been trying to get through to Washington ESD for weeks about a similar question and can't reach anyone. The phone lines are always busy or I get disconnected. Has anyone found a way to actually talk to someone there? I'm getting frustrated with this whole process.
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Owen Devar
•I was having the same problem until someone told me about Claimyr. It's a service that helps you get through to Washington ESD agents. I tried it last month and actually got connected within an hour. Check out claimyr.com - they have a video demo that explains how it works: https://youtu.be/7DieNd3C7zQ
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Brooklyn Knight
•Really? I've never heard of that. Does it actually work or is it just another scam?
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Owen Devar
•It's legit. They basically keep calling for you until they get through, then connect you to the agent. Saved me hours of frustration.
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Daniel Rivera
wait so if I'm getting severance I might not get my full unemployment check each week? That doesn't seem fair, I already lost my job!
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Ella Harper
•It's not about fairness, it's about how the system works. Severance is considered income, so it gets deducted from your weekly benefit amount. But you're still eligible for unemployment benefits overall.
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Daniel Rivera
•ugh this is so confusing. why can't they just make this stuff simple to understand
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Sophie Footman
The important thing is that severance payments are NOT considered wages for unemployment purposes in Washington. This means they won't disqualify you from benefits entirely, but they will affect your weekly payment amount through income deduction.
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Micah Franklin
•So basically I'll still be eligible but might get reduced payments some weeks depending on when the severance comes in?
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Sophie Footman
•Exactly. If your severance payment for a week is less than your weekly benefit amount, you'll get the difference. If it's more, you'll get $0 that week but your benefit year doesn't get extended.
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Connor Rupert
Make sure you report EVERYTHING accurately. I know someone who didn't report their severance properly and Washington ESD hit them with an overpayment notice months later. Not worth the risk.
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Micah Franklin
•Yikes, how much trouble did they get in?
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Connor Rupert
•They had to pay back like $3,000 plus penalties. Washington ESD doesn't mess around with unreported income.
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Molly Hansen
•This is why I always keep detailed records of everything. Better safe than sorry with government agencies.
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Brady Clean
Does anyone know if the type of severance matters? Mine is being paid as a lump sum vs monthly payments.
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Ella Harper
•Lump sum vs installments doesn't change the eligibility rules, but it affects how you report it. Lump sum gets reported the week you receive it.
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Brady Clean
•Got it, thanks. So I'd probably get $0 from unemployment the week I get the lump sum but then normal benefits after that?
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Skylar Neal
I'm in HR and deal with this question all the time. Washington state treats severance as non-wage compensation, which means it doesn't prevent unemployment eligibility. Just remember to report it as 'other income' on your weekly claims, not as wages.
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Micah Franklin
•That's really helpful context, thank you! I was worried I'd be ineligible completely.
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Vincent Bimbach
•As someone who processes these claims, this is correct. Severance ≠ wages in Washington ESD's system.
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Kelsey Chin
Whatever you do, don't try to hide the severance. Washington ESD will find out eventually through tax records and you'll be in much worse trouble than just having reduced benefits for a few weeks.
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Norah Quay
•This. They cross-reference everything with IRS data. Honesty is always the best policy with unemployment claims.
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Micah Franklin
•Definitely planning to report everything properly. Not worth the risk of getting in trouble later.
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Leo McDonald
I had a question about severance too and couldn't get through to anyone at Washington ESD for weeks. Finally used that Claimyr service someone mentioned earlier and got connected to an agent who explained everything clearly. Worth it just for the peace of mind.
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Jessica Nolan
•How much does something like that cost? I'm already strapped for cash after losing my job.
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Leo McDonald
•It was worth it for me, but check their website for current pricing. The time I saved from not sitting on hold for hours was valuable.
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Angelina Farar
Just wanted to add - make sure your employer coded the severance correctly on any tax documents. Sometimes they mess that up and it can cause issues with your unemployment claim later.
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Micah Franklin
•Good point, I'll double check that when I get my final pay stub.
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Sebastián Stevens
•Yes! I had to get my employer to correct this exact issue. Took weeks to sort out with Washington ESD.
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Bethany Groves
The bottom line is you can collect unemployment with severance in Washington, but it's considered income that gets deducted from your weekly benefit amount. Always report it honestly and you'll be fine.
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Micah Franklin
•Thanks everyone for all the helpful information! I feel much more confident about filing my claim now.
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KingKongZilla
•Good luck with your claim! The system can be confusing but at least Washington is pretty straightforward about severance rules.
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Rebecca Johnston
One more thing - if your severance has any strings attached like non-compete clauses or requirements to not work for competitors, that MIGHT affect your 'able and available' status for unemployment. Worth asking Washington ESD about if that applies to you.
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Micah Franklin
•Mine is just a standard severance with no restrictions, but that's good to know for others who might have different situations.
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Nathan Dell
•I had a non-compete in my severance and Washington ESD said it didn't affect my unemployment as long as I was actively seeking work in other industries.
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Maya Jackson
Been through this exact situation. Filed my initial claim, reported the severance each week as I received it, and everything went smoothly. The Washington ESD online system makes it pretty easy to report other income.
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Micah Franklin
•That's reassuring to hear from someone who actually went through the process. Thanks!
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Tristan Carpenter
•Same here. The key is just being upfront about everything from the start.
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Amaya Watson
If anyone is still having trouble reaching Washington ESD about severance questions, I used Claimyr a few weeks ago and finally got my questions answered. Their video demo at https://youtu.be/7DieNd3C7zQ shows exactly how it works. Saved me so much time and frustration.
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Grant Vikers
•I might have to try that. I've been calling Washington ESD for two weeks straight with no luck.
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Amaya Watson
•It's definitely worth it if you need to actually speak with someone. The automated system can only tell you so much.
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Diego Vargas
Just went through this exact situation myself! Got laid off in March with a $6,000 severance paid over 3 months. Washington ESD was actually pretty straightforward about it - you're definitely eligible for unemployment benefits. The severance gets reported as "other income" each week you receive it, not as wages. So if your weekly UI benefit is $500 and you get $500 in severance that week, you'd get $0 from unemployment but you're still in the system. The weeks where your severance is less than your benefit amount, you get the difference. Just make sure to report it accurately on every weekly claim - they will catch unreported income eventually through tax cross-referencing. Good luck with your claim!
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Arjun Kurti
•This is super helpful Diego! I'm in almost the exact same boat - got laid off with an $8k severance over 4 months. It's reassuring to hear from someone who actually went through the process successfully. Did you have any issues with the weekly reporting, or was the online system pretty straightforward for entering the severance payments?
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