Do I need to report lump sum severance pay to ESD? Getting conflicting info

You absolutely DO need to report that lump sum severance payment. The ESD handbook specifically states that all severance must be reported, whether it's paid out in installments or as a lump sum. When you report it, you'll need to indicate which week(s) it applies to - usually the week you receive it. Not reporting income is considered misrepresentation and can lead to an overpayment determination later, which means you'd have to pay back benefits plus potential penalties. Don't risk it based on secondhand information!

OMG this is the most confusing thing ever!!!! i was layed off in january and got a severance package (way smaller than yours tho lol) and i DID report it and then my claim got stuck in processing for like 3 weeks!!!! when i finally got thru to someone they had all these questions about the severance and wanted proof of when i got it and how much exactly and i had to upload my severance letter. such a headache!!!!!

Your coworker received incorrect information. I work in HR and deal with this regularly - Washington state requires reporting ALL severance payments regardless of payment method. Here's what happens: when you report the lump sum, ESD will likely allocate it over several weeks based on your previous salary. For example, if you made $1,450/week before layoff, they might consider your $5,800 severance as covering 4 weeks of benefits. This is important: you should still file your weekly claims during this period even though you might not receive benefits while the severance is being "allocated." Missing weeks of claims can cause bigger problems later.

ESD is the worst government agency in the history of government agencies!!! I once spent THREE MONTHS trying to fix a problem with my claim because someone at their office entered my SSN wrong. THREE MONTHS!!! And every time I called it was 'we're experiencing high call volume' and hang up. The whole system is designed to make you give up.

After spending weeks trying to reach ESD about a similar issue, I finally discovered a service called Claimyr that got me through to an ESD agent in less than 30 minutes. It basically keeps dialing and navigating the phone system for you until it gets through, then calls you when an agent is available. Saved me days of frustration! Check out their demo video at https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 and their website claimyr.com. It was absolutely worth it to get my severance questions answered directly by ESD.

ya gotta report it all my friend. i didn't report a small severance last year (only $2k) and ended up with a mess on my hands. they found out during the quarterly wage check against my former employer's tax filings and hit me with an overpayment notice. had to pay back 3 weeks of benefits plus a 25% penalty! not worth the risk!!

To answer your follow-up question about how the severance affects your benefits: When you report the severance, ESD will likely do what's called "allocation" - they'll spread that lump sum over multiple weeks based on your previous weekly wage. During those allocated weeks, your benefits will likely be reduced or eliminated entirely. For example, if your weekly benefit amount is $850 and your previous wage was around $1,450/week, they might allocate your $5,800 severance over 4 weeks. During those 4 weeks, you probably wouldn't receive any unemployment benefits. After that period, your regular benefits would begin if you're still unemployed and eligible. The key is to keep filing your weekly claims even during weeks you think you won't get paid because of the severance. This maintains your claim as active and ensures you don't miss out on benefits after the severance allocation period ends.

when i got laid off in 2023 my company gave us severance and specifically told us it was "not in lieu of wages" so we wouldn't have to report it to unemployment? still confused if that was accurate or not but that's what I did lol

Has anyone else noticed that the ESD website literally contradicts itself in different sections about this stuff????? I swear the FAQ says one thing and then the handbook says something else and then when you finally talk to someone they tell you a third thing????

Thanks everyone for the helpful responses! I'm going to report my severance payment when I file my weekly claim. It sounds like I might not receive benefits for a few weeks while they allocate the severance, but I'll keep filing my weekly claims so everything stays active. I'll also try the Claimyr service to get confirmation directly from ESD about how they'll handle this specific situation. Really appreciate all the advice!