How to report lump sum severance payment on ESD weekly claim after company separation?

I went through this EXACT situation last year! Yes, you need to report the severance as a lump sum in the week you received it. On the weekly claim, answer YES to the severance question for ONLY the week you received the payment. Then, in the follow-up questions, you'll need to report the full amount. The system will calculate how many weeks of benefits this affects. With 12 weeks of severance, ESD will likely determine you're not eligible for UI benefits until that equivalent time period has passed. But definitely still file your weekly claims during this time so when the severance period is "used up" in their calculations, your benefits can start without delay.

Just to clarify some important details here: Lump sum severance is reported in the week received, but ESD treats it as if it's being paid out over time. This is based on WA state law that considers severance as remuneration attributable to specific weeks. For example, if your regular weekly wage was $1,000 and you received $12,000 in severance, ESD will consider you to have received wages for 12 weeks following your separation. During this period, you won't receive unemployment benefits, but it's critical that you continue filing your weekly claims during this time. You should receive a determination letter from ESD explaining the exact calculation and when your benefits will begin. Keep an eye on your ESD correspondence in eServices.

u should definetly say YES on the week u got paid the lump sum!! my friend said NO and didn't report it and got hit with major overpayment later + penelty for not disclosing it. don't mess w/ ESD they will find out anyway when employer reports everything

I'd like to add that severance payment reporting is one of the most common issues for new unemployment claimants. To clarify what others have said: 1. Report your severance payment for the week you received it 2. Include the full lump sum amount when prompted 3. Continue filing weekly claims even during the severance period 4. Expect benefits to begin after your severance period is mathematically exhausted Be prepared for potential delays if the system flags your claim for adjudication to verify the severance details. If that happens and you need to speak with an ESD agent, I highly recommend using Claimyr (claimyr.com). I used their service when my claim got stuck in adjudication over severance reporting issues. Their system helped me get through to an actual ESD agent within 30 minutes instead of spending days calling. They have a video demo showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3

My severance was reported by my employer automatically so I didn't have to do anything. Maybe yours will too? the whole system is a mess honestly.

Update: I reported my severance as a lump sum for the week I received it. ESD sent me a determination letter saying I won't receive benefits for 12 weeks (matching my severance period). The letter says I should continue filing weekly claims during this time so benefits can start automatically once the severance period ends. Thanks everyone for your help!