ESD weekly claim confusion - reporting severance pay from previous employer

You absolutely need to report the severance pay. ESD requires all severance to be reported, even if it was paid as a lump sum. They'll typically allocate that severance across multiple weeks based on your husband's previous weekly wage. For example, if he got $6,000 severance and his weekly wage was $1,500, ESD would consider that as 4 weeks of payment. This often means you won't receive unemployment benefits until that severance period is considered 'used up.' The form is asking about that specific week because they need to know if any portion of the severance should be allocated to that period.

The way ESD handles lump-sum severance is SO confusing!! When my wife got laid off in 2024, we reported her severance and then had to wait like 6 weeks before benefits started. But my neighbor said he didnt report it and got benefits right away. What happened to him later?? No idea but seems risky!!! I'd report it and let ESD figure out the math. Better safe than sorry with these unemployment things, turst me.

Report the severance and be specific about when it was received and the total amount. When I filed in early 2025, I explained in the comments section that I received a lump sum severance payment on X date. ESD then determined how that affected my benefits. In my case, they allocated it over 3 weeks based on my previous salary, so I couldn't receive benefits for those weeks. But once that period passed, my regular benefits started without issue. If you're struggling to get through to an ESD agent to ask about your specific situation, I'd recommend using Claimyr (claimyr.com). They helped me get through to an actual ESD agent within 30 minutes when I had questions about how my severance affected my claim. They have a video demo at https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 that shows how it works. Saved me from waiting on hold for hours or getting disconnected.

When I filed last month I didn't report my severance bc like you said it was paid out before. But then I got a letter saying I was disqualified for weeks 1-3 bc my ex-employer told ESD about the payment anyway. Now I have to pay back $1,876!!! Don't make my mistake just report everything.

actually you should know that how esd treats severance depends on if its true severence or if its more like a continuation pay. Did the paperwork say anywhere if its a WARN act payment? That gets treated differnetly sometimes. My husbands company had to pay 60 days under the WARN act when they closed with no notice and ESD counted it different than regular severance. def call and ask!

Yes! Say yes! He GOT the money! Doesnt matter WHEN he got it, matters IF he got it! ESD is asking if he received severance that was MEANT to cover that week not if he literally got a check during that week.

To add some clarity to this thread: In Washington state, ESD specifically requires reporting of all severance payments. The key regulation is under WAC 192-190-070, which covers how severance affects unemployment benefits. The answer to your specific question is yes - you must report the severance payment even though it was received as a lump sum prior to the week in question. ESD will typically allocate the severance across multiple weeks based on your husband's previous wage. For instance, if he received $7,500 in severance and was earning $2,500 per week, ESD would consider that as covering 3 weeks after separation. Your benefits would be reduced or eliminated during this allocation period. I recommend both reporting the payment AND adding a clear note in the comments section explaining it was a lump sum severance paid on his last day. This creates a clear record if there are any questions later.

I went through this exact same situation last year when my company downsized. The key thing to remember is that ESD looks at severance as "deferred wages" - meaning it's considered payment for weeks you would have worked if you hadn't been laid off. When you report the severance, make sure to include the exact amount and the date it was paid. ESD will then calculate how many weeks that severance covers based on your husband's gross weekly wage from his last quarter of employment. During those "severance weeks," he won't be eligible for unemployment benefits, but once that period ends, his regular UI benefits should kick in without any issues. One tip: keep all documentation from the employer about the severance payment (pay stub, separation letter, etc.) in case ESD requests it later during their review process. Also, if the severance was subject to a separation agreement or non-compete clause, that might affect the timeline, so mention that in your filing if applicable. The good news is that reporting it upfront shows good faith and prevents any overpayment issues down the road. Better to wait a few extra weeks for benefits than deal with having to pay money back later!

I just wanted to chime in as someone who recently went through this process with my own unemployment claim. The consensus here is absolutely correct - you MUST report the severance payment even though it was received as a lump sum before the week in question. I made the mistake of initially thinking like you did - that since the money was received on a different date, it didn't need to be reported for specific weeks. But ESD's system is designed to catch these discrepancies, and they will eventually find out through employer reporting and tax record cross-checks. When I corrected my claim and reported my severance properly, ESD was actually very understanding about the initial confusion. They recalculated my benefits, applied the severance allocation retroactively, and adjusted my payment schedule accordingly. Yes, it meant waiting longer for benefits to start, but it prevented any fraud allegations or overpayment issues. My advice: Report it now, be completely transparent in the comments section about when and how much was received, and keep all your documentation organized. The temporary delay in benefits is much better than the stress and financial consequences of trying to fix it later. Good luck with your husband's claim!

I'm new to this community but wanted to share what happened with my sister's claim last month. She was in almost the exact same situation - received a lump sum severance payment on her last day after 15 years with the company, then was confused about reporting it on her weekly claims. She initially tried calling ESD directly but couldn't get through (typical!). After reading advice similar to what's been shared here, she decided to report the full severance amount and explained in the comments that it was a lump sum payment received on her termination date. ESD allocated her $8,400 severance over 4 weeks based on her previous weekly wage of $2,100. She couldn't receive benefits during those 4 weeks, but once that period ended, her regular unemployment benefits started without any complications. The whole process was actually smoother than she expected once she reported everything honestly. The key takeaway from her experience: ESD's computer systems are pretty sophisticated at cross-referencing employer reports and tax records, so trying to hide or misrepresent severance payments almost always backfires. Being upfront from the start saved her a lot of potential headaches down the road. Hope your husband's claim goes smoothly! This community has given you solid advice - definitely report that severance payment.

I went through something very similar with my unemployment claim earlier this year. My employer gave me a severance package when they eliminated my position, and I was also confused about how to report it on the weekly claims. Here's what I learned: ESD considers severance as "payment in lieu of notice" - essentially wages for time you would have worked if you hadn't been laid off. So even though your husband received it all at once, ESD will spread that amount across however many weeks it would have covered based on his regular salary. The specific wording of their question can be confusing, but you should answer "yes" and report the severance. In the comments section, be very clear: "Received lump sum severance payment of $X on [date of last day of work]. This was not payment specifically for this week but total severance package." When I did this, ESD calculated that my $4,800 severance covered 3 weeks at my previous wage rate. I couldn't collect benefits for those 3 weeks, but after that period ended, my regular unemployment payments started right on schedule. Don't stress too much about the exact wording - just be honest and thorough in your reporting. ESD deals with this situation all the time and their system will handle the calculations once you provide the correct information.