ESD weekly claim confusion - reporting severance pay from previous employer
Hi everyone, I'm in a weird situation with my husband's unemployment claim and could really use some advice. After working at the same company for 17 years, he got laid off two weeks ago. His employer paid out his entire severance package on his last day of work, and he hasn't received any additional money since then. We're now filing his weekly claim with ESD, and there's a question asking if he received any severance pay specifically for the week of September 29-October 5th. I'm confused about how to answer this since he got the lump sum payment before that week. Do we need to report the severance pay even though it wasn't specifically for that week? Or do we only report money he actually received during that week? I don't want to mess up his claim by answering incorrectly. Thanks in advance for any help!
14 comments
Emma Davis
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.
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Javier Morales
•Thank you! That helps explain it. So even though he physically received the money before that week, I should still answer 'yes' because ESD will allocate part of the lump sum to cover that week? I'm worried about accidentally committing fraud by answering incorrectly.
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GalaxyGlider
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.
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Malik Robinson
•Your neighbor is playing with fire! ESD regularly cross-references with employer payroll records and tax documents. When they discover unreported income (which they almost always do), they issue an overpayment notice with potential penalties. Some cases even get referred for fraud investigation. Not worth the risk just to get benefits a few weeks earlier.
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Isabella Silva
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.
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Javier Morales
•That's really helpful! I'll definitely report the severance and explain the lump sum payment in the comments section. And thanks for the Claimyr suggestion - might try that if we get stuck with more questions.
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Ravi Choudhury
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.
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GalaxyGlider
•EXACTLY what I was worried about happening! The system is designed to catch this stuff eventually. ESD and employers talk to each other.
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Freya Andersen
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!
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Emma Davis
•Good point about the distinction. Regular severance is typically counted as income that can reduce or temporarily eliminate UI benefits. WARN Act payments are sometimes treated differently, but it still needs to be reported regardless. The key is to accurately report everything and let ESD make the determination. Document all communications just in case you need to appeal their decision later.
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Omar Farouk
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.
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Javier Morales
•That makes sense. I was overthinking it! We'll report the severance and make sure to explain it was a lump sum payment.
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Malik Robinson
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.
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Javier Morales
•This is so helpful - thank you for the detailed explanation and even citing the specific regulation. I feel much more confident about how to handle this now. We'll definitely report the severance and explain the situation clearly in the comments.
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