Washington ESD unemployment benefits - is severance pay considered earned income?

Severance pay in Washington state is generally NOT considered earned income for unemployment purposes if it's paid as a lump sum upon termination. You should still report it when you file your initial claim, but it typically won't reduce your weekly benefits. The key is that it's not payment for work performed during the weeks you're claiming benefits.

I had a similar situation last year - got severance when my company downsized. Washington ESD didn't count it against my weekly benefits at all. Just make sure you're clear that it was a one-time payment, not ongoing compensation.

Just be careful about how you report it. I've heard some people get their claims delayed because Washington ESD needs time to review severance situations. If you're having trouble getting through to them about it, I recently found this service called Claimyr (claimyr.com) that helps people actually reach Washington ESD agents. They have a demo video at https://youtu.be/7DieNd3C7zQ showing how it works.

Washington ESD has specific guidelines about severance pay. If it's a true severance package (not pay in lieu of notice), it generally doesn't affect UI benefits. However, if part of your severance includes pay for unused vacation time or represents wages for a specific period, those portions might be treated differently.

wait so if i got paid for unused vacation days when i was fired does that count as income?? i thought severance was just severance

The important thing is timing. If you received severance pay for the week you're claiming benefits, that could potentially affect that specific week. But if it was paid before you started claiming, it shouldn't impact your ongoing weekly benefits.

One thing to watch out for - some severance agreements include non-compete clauses that might affect your job search requirements. Make sure you understand all the terms of your agreement.

I'm dealing with a similar situation but can't get anyone at Washington ESD on the phone to clarify. Been calling for days and either get busy signals or get disconnected after waiting forever. This is so frustrating!

Been there with the severance confusion. Washington ESD actually has pretty clear guidance on this if you can find it on their website. The key distinction is whether it's payment for future work periods or just a departing benefit.

My HR department told me severance wouldn't affect unemployment but I wanted to double-check. Sounds like they were right for once!

Just wanted to add that if your severance included any stock options or bonuses, those might be treated differently than regular severance pay. Each component could have different rules.

so basically as long as its not ongoing payments you should be fine? like if they paid me weekly severance that would be different?

The whole severance thing is one of those areas where Washington ESD seems to handle cases individually. I've seen people with similar situations get different outcomes depending on how they reported it.

I had to deal with this exact question last year and ended up having to appeal my initial determination. Turned out Washington ESD initially counted my severance as income, but after the appeal they reversed it. Sometimes you have to fight for the correct interpretation.

For anyone still confused about this stuff, I found that actually talking to a Washington ESD agent was way more helpful than trying to figure it out from their website. Used that Claimyr service someone mentioned and finally got through to someone who could explain my specific situation.

Quick question - does the amount of severance matter? Like if someone got a huge severance package would that be treated differently than a small one?

This thread has been super helpful. I've been putting off filing because I wasn't sure about my severance situation, but now I feel more confident about moving forward.

Just a heads up that if you're filing online, there should be a specific section where you can explain your severance situation. Don't just leave it blank or try to hide it - transparency is always better with Washington ESD.

One last thing - if your former employer contests your unemployment claim for any reason, having documentation about your severance package could be important. Keep all the paperwork just in case.

This whole discussion reminds me why I love reddit for this kind of practical advice. Way more helpful than trying to navigate Washington ESD's website alone.