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!

Great to see you got it sorted out! Your experience perfectly illustrates why it's so important to report severance correctly from the start. For anyone else reading this thread who might be in a similar situation, here are the key takeaways: 1. Always report lump sum severance in the week you received it 2. Report the full amount when prompted by the system 3. Continue filing weekly claims during the severance period (this is crucial!) 4. Wait for your determination letter to understand exactly when benefits will start The "garden leave" situation you mentioned is also pretty common in tech layoffs. Just remember that any pay received during that period, even if you weren't working, still counts as wages and should be reported on your weekly claims if you were filing during that time. Thanks for sharing your update - it'll definitely help others who find themselves in the same boat!

As someone who just went through this process recently, I want to emphasize how important it is to keep detailed records of everything! Save copies of your separation agreement, severance payment stub, and any correspondence with HR about the timeline. When I reported my lump sum severance, ESD initially had questions about the calculation because my employer had also provided some additional benefits (like extended health insurance coverage) that weren't clearly separated from the cash severance amount. Having all the documentation made it much easier to clarify with the ESD agent. Also, don't panic if your claim status shows "pending" for a while after reporting the severance - this seems to be normal as they process and verify the information. Mine took about 2 weeks to get the determination letter, but everything worked out exactly as described in this thread. One more tip: if you're job searching during your severance period, you can still do informational interviews and networking - just be prepared to explain your availability timeline to potential employers since you won't be able to start immediately if you want to maximize your unemployment benefits later.

Just wanted to chime in as someone who's currently going through this exact situation! I was laid off from my company in January and received a 10-week lump sum severance. Reading through everyone's experiences here has been incredibly reassuring. I followed the advice in this thread - reported the full severance amount in the week I received it, and have been diligently filing my weekly claims even though I'm not getting any payments yet. Got my determination letter about 3 weeks after reporting, and it confirmed I won't be eligible for benefits until mid-April when my severance period ends. One thing I'd add for anyone in a similar boat: make sure you're still meeting the work search requirements during your severance period! I initially thought I didn't need to look for work since I wasn't receiving benefits, but the ESD website clarifies that you still need to be "able and available" for work and conducting job search activities. I've been documenting my job applications and networking activities just like I would during a normal benefit period. It's definitely frustrating to be in this limbo period, but knowing that my benefits will start automatically once the severance runs out makes it much more manageable. Thanks to everyone who shared their experiences - this community is such a lifesaver during these stressful times!

I'm currently in a very similar situation and this entire thread has been incredibly helpful! I was laid off from my company two weeks ago with an 8-week severance package, and I've been so anxious about how to handle the unemployment filing process correctly. Reading through everyone's experiences has given me the confidence to move forward. I'm planning to report my lump sum severance for the week I received it and continue filing weekly claims during the waiting period, just as everyone has recommended. One question I have - for those who have been through this process, did you find that ESD was pretty consistent with their timeline estimates? My severance should theoretically cover 8 weeks, so I'm hoping to have a clear idea of when benefits might start. I know everyone's situation is different, but I'm curious if the determination letters tend to be accurate with their projected benefit start dates. Also, I'm wondering about the work search documentation during the severance period. Should I be using the same WorkSource system to log my job search activities even though I'm not receiving payments yet? I want to make sure I'm doing everything by the book from day one. Thanks again to everyone who has shared their experiences here - this community support makes such a stressful time much more manageable!