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Zara Mirza

Can you receive unemployment if you receive severance - Washington ESD question

I'm really confused about this and can't get through to Washington ESD on the phone. My company laid me off last month and gave me 8 weeks of severance pay. I know I should file for unemployment but I'm not sure if the severance affects my benefits or if I even qualify. The severance is being paid out weekly through payroll, not as a lump sum. Has anyone dealt with this situation before? Do I need to wait until the severance runs out to apply, or can I file now and just report it on my weekly claims?

You can definitely file for unemployment while receiving severance in Washington state. The key is how you report it. If it's being paid weekly like regular wages, you'll need to report it on your weekly claims and it will reduce your benefits dollar for dollar during those weeks.

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So I should file my initial claim right away even though I'm getting severance? I was worried they'd deny the whole claim.

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Yes, file immediately. The sooner you file, the sooner your benefit year starts. You might not get paid during the severance weeks, but you'll still be in the system.

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this is confusing to me too, my friend got severance and they told her she couldn't get unemployment at all? maybe it depends on the amount?

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That's not correct. In Washington, severance doesn't disqualify you from unemployment benefits. It just affects the weekly benefit amount during the weeks you receive it. Your friend may have been misinformed or there might have been other factors.

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I went through this exact situation last year. Had to call Washington ESD multiple times to get clear answers because their website wasn't super clear about it. What finally worked for me was using Claimyr to actually get through to an agent. They have this service at claimyr.com that calls for you and gets you connected. There's even a video demo at https://youtu.be/7DieNd3C7zQ showing how it works. The agent explained everything perfectly about how severance affects weekly claims.

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How much did that cost? I'm already stressed about money with the layoff.

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It was worth it for me to get accurate information instead of guessing. The peace of mind was huge, and I got my claim filed correctly the first time instead of making mistakes.

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Wait, I'm so confused about this whole thing. If I'm getting severance pay weekly, do I mark myself as unemployed or employed on the weekly claim? And what about the job search requirements - do those apply during severance weeks?

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You mark yourself as unemployed since you're not working. The severance is just compensation, not wages from active employment. As for job search, yes, you still need to meet the requirements even during weeks you're receiving severance pay.

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The Washington ESD system is SO frustrating with stuff like this! They make it unnecessarily complicated. Why can't they just have clear information on their website instead of making everyone call and wait on hold for hours?

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I agree the system needs work, but the information is actually there if you dig through their handbook. Most people just don't want to read 50 pages of policy details.

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Just want to add that lump sum severance is treated differently than weekly severance payments. If you get it all at once, Washington ESD allocates it over the weeks it's supposed to cover. Weekly payments are easier - just report them as they come.

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Good to know! Mine is definitely weekly payments, so sounds like I just report each week as I get it.

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Exactly. And make sure to report the gross amount before taxes, not the net amount you actually receive.

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I had severance AND vacation payout when I got laid off. Talk about confusing! The vacation pay also reduces your benefits week by week. It's like a double whammy of reduced unemployment payments.

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Ugh, same situation here. Between severance and accrued PTO payout, I didn't see any unemployment money for almost 3 months. But at least I was in the system and ready to go when those ran out.

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Did you still have to file weekly claims during all those weeks even though you weren't getting paid?

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Yes! You have to keep filing weekly to maintain your claim. Miss too many weeks and they can close your claim entirely.

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Another thing to consider - if your severance includes continuation of health benefits, that doesn't count as income for unemployment purposes. Only the actual cash payments reduce your benefits.

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That's helpful! My severance does include COBRA premium payments for 2 months.

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Perfect, so you only report the actual cash severance, not the value of the health insurance coverage.

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I made the mistake of not filing right away because I thought I had to wait until severance ended. Lost out on weeks of potential benefits because I didn't understand the system. Don't make my mistake - file immediately!

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Can you backdate unemployment claims to make up for those lost weeks?

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Very limited backdating is allowed, and you need a really good reason. It's much better to just file on time. The Washington ESD doesn't make it easy to fix timing mistakes.

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For anyone still struggling to get through to Washington ESD about this, I recently discovered Claimyr and it's been a game changer. Instead of spending hours trying to call, they handle the calling for you and connect you when an agent is available. Really helped me get my severance questions answered quickly.

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Is that legitimate? Seems too good to be true that someone else can call for you.

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Yeah it's real. They basically automate the calling process and wait in the queue for you. When they get through, they transfer you to the agent. Saved me literally hours of redialing.

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Quick question - does anyone know if non-compete payments count the same as severance for unemployment purposes? My company is paying me monthly not to work for competitors for 6 months.

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Non-compete payments are generally treated as wages for unemployment purposes in Washington, so they would likely reduce your benefits similar to severance. You should definitely report them on your weekly claims.

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The timing of when you receive severance matters too. If it's delayed and comes after you've already been getting unemployment, you might have to pay back some benefits. Washington ESD is pretty strict about this stuff.

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Good point. My severance started the week after my last day of work, so the timing should be straightforward.

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That's ideal. Clean transitions make the reporting much easier for everyone involved.

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Does anyone know if the job search requirement is waived during the severance weeks? Since you're not getting unemployment money those weeks anyway?

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No, the job search requirement continues throughout your entire claim period in Washington, regardless of whether you receive payment in specific weeks due to severance or other deductible income.

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I used Claimyr when I had severance questions last year and the agent was super helpful explaining how it all works. Much better than trying to figure it out from the website. They walked me through exactly how to report it on my weekly claims.

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How long did it take them to get you connected to an agent?

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About 45 minutes, but I wasn't sitting there the whole time. They called me back when they got through. Way better than the 3 hours I spent trying to call myself the day before.

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Thanks everyone for all this info! I feel much more confident about filing my claim now. Going to start the process today and make sure I report my severance properly on the weekly claims.

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Good luck! Remember to keep detailed records of all your severance payments in case Washington ESD has questions later.

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Will do! This thread has been incredibly helpful.

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