How does a lump sum severance affect Washington ESD unemployment benefits?

Lump sum severance payments in Washington don't typically delay your unemployment benefits like they do in some other states. The key is how Washington ESD classifies the payment. If it's truly severance and not payment in lieu of notice, it shouldn't affect your benefit start date. You'll need to report it on your initial claim though.

I got a $12,000 severance last year and it didn't delay my benefits at all. Washington ESD asked about it during my phone interview but said it was fine since it was a one-time payment and not ongoing wages.

You definitely need to report the severance on your initial claim. Washington ESD will determine if it affects your benefits during the adjudication process. The good news is that true severance payments usually don't create waiting periods like pension payments might. Make sure you have documentation of what the payment was for.

Ugh, I'm dealing with something similar but can't get through to anyone at Washington ESD to clarify my situation. I've been calling for days and either get busy signals or get disconnected after waiting forever. It's so frustrating when you need answers about your benefits.

Just want to clarify something - are you sure it's severance and not payment in lieu of notice? Because those are treated differently by Washington ESD. Payment in lieu of notice might actually delay your benefits since it's considered wages for a specific period.

I'm curious about the tax implications too. Did they withhold taxes from your severance? That might affect how much you report to Washington ESD.

My brother got severance when his company downsized and Washington ESD didn't make him wait at all. Filed on Monday, got approved that same week. The key is being upfront about everything from the start.

One thing to watch out for - make sure you don't accidentally report the severance as wages on your weekly claims. It should only be reported on your initial application, not every week.

The Washington ESD website has some information about this but it's not super clear. I wish they'd make their guidance more straightforward for common situations like severance payments.

Wait, is this different from vacation payout? I got both severance and unused vacation paid out when I was laid off. Do I need to report both?

I had a similar situation but with a smaller severance amount. Washington ESD asked about it during my eligibility review but it didn't affect my benefits at all. The whole process took about 3 weeks from filing to getting my first payment.

Pro tip: take screenshots of your severance documentation and keep digital copies of everything. Washington ESD sometimes asks for the same information multiple times.

Update on my calling situation - I actually tried that Claimyr service someone mentioned earlier and it worked! Got connected to a Washington ESD agent within an hour. They clarified my severance question and I'm all set now. Definitely worth it when you can't get through on your own.

For what it's worth, I think Washington is pretty reasonable about severance compared to other states. As long as you're honest about it upfront, they usually don't create unnecessary delays.

Does anyone know if the amount of severance matters? Like, is there a threshold where it starts affecting benefits?

My company is doing layoffs next month and I'm probably going to be affected. This thread is really helpful for understanding what to expect with severance and unemployment.

Just wanted to add that if your severance came with any strings attached (like non-compete agreements), that might be something to mention to Washington ESD as well.

The timing of when you receive the severance versus when you file might matter too. I'd recommend filing your unemployment claim as soon as possible after your last day of work.

Thanks for starting this thread! I learned a lot about severance and unemployment that I didn't know before. Definitely saving this for future reference.

One last thought - make sure you keep your severance letter and any other documentation from your employer. Washington ESD might want to see the exact wording to determine how to classify the payment.