Does a severance package affect Washington ESD unemployment benefits?

Thanks for the quick response! Do you know if there's a specific form I need to fill out or do I just mention it when filing my initial claim?

You report it during your initial claim filing process. There's a section specifically asking about severance pay and other compensation.

That's really helpful to know! So if my severance is $15k and my weekly benefit would be around $600, I'd have to wait about 25 weeks??

That sounds about right based on the math. It's frustrating but at least you know what to expect upfront.

Actually, I think you should still file your claim right away even with the severance. The waiting period starts from when you become unemployed, not when you file.

Never heard of that service before. Does it actually work or is it just another scam?

No it's legit - they just help you get through the phone queue. I was skeptical too but it actually worked for me when I was stuck on the severance question.

Severance is considered wages for unemployment purposes, so it can create a waiting period. The logic is that you're still being 'paid' by your former employer for a certain period.

That seems really unfair. You're already unemployed but they make you wait longer to get benefits because your employer was nice enough to give you severance?

Yeah it's one of those bureaucratic things that doesn't make sense from a practical standpoint but that's how the system works unfortunately.

Mine is structured as a lump sum payment, not continued salary. Does that make a difference in how Washington ESD handles it?

Yes, with a lump sum they calculate how many weeks of benefits it represents and make you wait that period. It's usually more favorable than weekly continuation payments.

Yeah I definitely wasn't planning to hide it. Just wanted to understand how it works before I file.

Good call. I know someone who tried to hide their severance and ended up owing back like $8000 in benefits plus penalties.

Yes, you still need to meet job search requirements during any waiting periods. The clock starts ticking on your benefit year whether you're collecting or not.

That's what I was afraid of. So I have to job search but can't collect benefits. Washington ESD really knows how to make things complicated.

Usually just the cash portion counts toward the severance calculation, not benefits like health insurance or COBRA payments.

That's a relief. The cash portion is manageable but if they counted the health insurance it would be a much longer wait.

That's a good point. $15k upfront is probably better than waiting for unemployment benefits to trickle in over months.

Exactly. Plus you're not dealing with the weekly claim filing requirements during that time, which is actually kind of nice.

Good point. I should review my separation agreement more carefully to see exactly what they're calling the different payments.

Yeah vacation payout is usually not counted as severance for Washington ESD purposes. Only the actual severance payment counts.

That's exactly why I ended up using Claimyr. Their service got me through to an agent who could actually answer my specific severance questions instead of just general information.

I might have to try that. I've been calling for two weeks and haven't gotten through to anyone who could help.

No, the waiting period doesn't count against your benefit year duration. You still get your full benefit entitlement, it just starts later.

That's actually better than I thought. At least I'm not losing potential benefits, just delaying them.

That's smart thinking. Unfortunately my severance is already structured as a lump sum so it's too late to change it.

Yeah you have to think about it during the negotiation phase. Most people don't realize the unemployment implications until it's too late.

That's good advice. I was thinking about waiting until the severance period was over but I'll file immediately instead.

Yeah definitely file right away. The paperwork takes time to process and you want to be in the system already when your waiting period ends.

4 months is a long time! Did you have to keep doing job searches during that whole period?

Yes, still had to meet all the job search requirements even though I couldn't collect benefits. It's definitely not fun but that's how the system works.

That's really good advice. I wish I had known about the unemployment implications before I accepted my severance package.

Yeah most people don't think about it until it's too late. The key is understanding how Washington ESD calculates the waiting period before you sign anything.

Thanks everyone for all the helpful information. I feel much more prepared to file my claim now that I understand how the severance will be handled.

Good luck with your claim! At least you know what to expect upfront instead of being surprised later.