ESD confused my years-of-service payout with severance - will this affect my benefits?

This happened to me too! I got a golden handshake payment when my job at the shipping company ended and ESD counted it all as earnings which totally messed up my benefits. I had to call like 20 times before I got through to fix it. The difference between severance and other types of separation payments DOES matter for how they calculate your benefits.

You definitely need to contact ESD about this. Different types of separation payments are treated differently for unemployment purposes. Severance is typically deducted from benefits week-by-week, while one-time service awards might be handled differently. The key is whether the payment was tied to specific weeks after your separation or was truly just a one-time recognition for past service. Call ESD to explain the situation. Be sure to have documentation from your employer clearly stating what type of payment it was. You may need to request a letter from HR specifically stating this isn't severance but a recognition award based on past service.

omg dont even bother calling ESD directly!!!!! been there done that wasted DAYS of my life. you'll just get the automated message saying high call volume then it hangs up on you. so frustrating

I've been in the exact situation - I received a longevity bonus after 10 years when my position was eliminated. Initially reported it wrong and my benefits were reduced. Here's what I did: 1. Got a letter from HR clarifying the payment type 2. Submitted this through the ESD portal under "Upload Documents" 3. ALSO managed to reach an agent who fixed it on the spot The key distinction ESD looks for is whether the payment was for PAST service (not deductible) vs. payment for future periods (deductible). If it's clearly for your past 8 years of service, they shouldn't be deducting it from your benefits. I used Claimyr (claimyr.com) to get through to an ESD agent quickly after wasting days trying on my own. They have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3. It got me through to an agent in about 25 minutes when I'd been trying for days with no luck. The agent immediately understood the issue and corrected it.

Just to add some clarity here: According to WAC 192-190-070, separation payments that are based solely on your years of service (and not tied to specific weeks after separation) are NOT deductible from unemployment benefits. The ESD handbook specifically distinguishes between true severance (which reduces benefits) and service recognition payments (which typically don't). Your employer should be reporting this correctly on their response to ESD as well. If they coded it wrong on their end, that could be part of the problem. Definitely get this corrected ASAP because it can affect your weekly benefit amount significantly.

Why is it so IMPOSSIBLE to get anyone on the phone at ESD?!? I've been trying for 3 weeks to fix an error they made on my claim. This system is completely broken. Meanwhile they expect us to respond to their requests within 48 hours or risk disqualification!

One more point to consider: You're allowed to submit a statement correcting information on your initial claim. Go to your eServices account, find the "Upload Documents" section, and upload a signed statement explaining the error and including any supporting documentation from your employer. Title it "Request for Redetermination - Separation Pay Classification". This creates a paper trail while you're trying to reach someone by phone.