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Tony Brooks

Washington ESD unemployment eligibility after receiving severance package - confused about the rules

My company laid me off last month and gave me a severance package worth about $8,000. I'm wondering if I can still file for unemployment benefits with Washington ESD while receiving this severance? I've heard conflicting information - some people say you have to wait until the severance runs out, others say you can collect both. The Washington ESD website isn't super clear about this situation. Has anyone dealt with this before? I really need to know because I'm trying to figure out my finances for the next few months.

You can actually file for unemployment right away even with severance in Washington state. The key thing is HOW the severance is paid out. If it's a lump sum, Washington ESD typically won't count it against your weekly benefits. But if it's paid out weekly like regular wages, then it might reduce your weekly benefit amount.

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Thanks! It was paid as a lump sum, so sounds like I should be good to file. Do I need to report the severance amount when I file my initial claim?

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Yes, definitely report it when you file. Washington ESD will ask about any severance or separation pay you received. Being upfront about it prevents issues later.

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I went through this exact situation last year. Got a $12k severance and was able to collect full unemployment benefits from Washington ESD. Like the previous poster said, lump sum severance doesn't affect your weekly benefits in Washington. Just make sure you report it honestly on your application.

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That's reassuring to hear! Did they ask you any follow-up questions about the severance during the application process?

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Nope, just had to put the amount and date I received it. Pretty straightforward once you get past the initial application.

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Be careful though - if you're having trouble getting through to Washington ESD to clarify this, I'd recommend using Claimyr. It's a service that helps you actually reach an ESD agent by phone. I found out about it at claimyr.com and there's even a demo video at https://youtu.be/7DieNd3C7zQ showing how it works. Really helpful when you need to get specific questions answered about complex situations like severance and unemployment.

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Never heard of that service before. Does it actually work to get through to Washington ESD? I've been trying to call for weeks about my own claim issues.

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Yeah it worked for me. Basically handles the waiting on hold part so you don't have to sit there for hours. Worth checking out if you need to talk to someone at ESD.

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wait im confused... i thought any money you get from your employer would count against unemployment? my friend told me she had to wait until her severance ran out before she could file

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Your friend might have been in a different state or had a different type of severance arrangement. In Washington, lump sum severance typically doesn't delay eligibility.

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oh ok that makes sense. every state probably has different rules about this stuff

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This is exactly why the unemployment system is so frustrating! The rules are different everywhere and even Washington ESD's own website doesn't explain these scenarios clearly. I spent hours trying to figure out if my vacation payout would affect my benefits last year.

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Right? It shouldn't be this complicated to understand basic eligibility rules. Did your vacation payout end up affecting your benefits?

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No it didn't, but I had to call Washington ESD three times to get a straight answer. Each person told me something different initially.

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Just file your claim and be honest about the severance. Washington ESD will figure out if it affects your benefits or not. Don't overthink it - you're entitled to unemployment if you lost your job through no fault of your own.

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You're right, I'm probably overthinking this. I'll just file and report everything accurately.

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One thing to keep in mind - even though your severance won't affect your weekly benefit amount, you still need to be actively looking for work and meeting all the other Washington ESD requirements. Don't slack on the job search just because you have some severance money.

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Good point. I need to register with WorkSource too, right? And keep track of my job search activities?

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Exactly. You'll need to register with WorkSourceWA and log your job search activities. Usually 3 job contacts per week minimum.

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I'm dealing with something similar but my severance is being paid out over 6 months as regular paychecks. I'm assuming this will affect my unemployment benefits differently than a lump sum?

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Yes, that would likely be treated as wages and could reduce your weekly benefit amount. You should definitely call Washington ESD to get clarification on your specific situation.

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This is another case where Claimyr might be helpful - sounds like you need to talk to an actual ESD agent to understand how ongoing severance payments will affect your claim.

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The Washington ESD handbook says severance pay doesn't disqualify you from benefits but it might affect the timing or amount. I think the key is whether it's considered 'wages' or just a one-time payment.

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That matches what others are saying here. Since mine was a lump sum, it sounds like it shouldn't be considered wages.

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can you get unemployment if you quit your job but got severance? asking for a friend lol

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Generally no - if you voluntarily quit, you're not eligible for unemployment benefits regardless of severance. There are some exceptions for 'good cause' but that's a whole different discussion.

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figured as much but thought id ask. my 'friend' will have to look into other options

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I worked in HR for years and dealt with this question a lot. In Washington state, lump sum severance payments typically don't affect unemployment eligibility or benefit amounts. The confusion often comes from people mixing up Washington rules with other states that have different policies.

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That's really helpful insight from the employer side. Thanks for confirming what others have said here.

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Wish more HR people were as clear about this stuff when people are getting laid off. Would save a lot of confusion.

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JUST WENT THROUGH THIS!! Got laid off in December with a $15k severance package. Filed for unemployment the same week and had no issues. Washington ESD approved my claim and I've been getting full benefits. The severance was reported but didn't affect anything.

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Awesome! That gives me confidence to go ahead and file. How long did it take for your claim to get approved?

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About 2 weeks from filing to first payment. Pretty standard timeline for Washington ESD.

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Thanks everyone for all the helpful responses! Sounds like the consensus is that I can file for unemployment right away and the lump sum severance won't affect my benefits. I'm going to go ahead and submit my application today. Really appreciate this community for clearing up my confusion!

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Good luck with your claim! Remember to file your weekly claims on time and keep up with the job search requirements.

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You've got this! The hardest part is usually just understanding the rules, which you've got figured out now.

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One more tip - when you file your weekly claims, you'll probably see a question about receiving any other income. Just report your severance there too, even though it shouldn't affect your benefits. Better to over-report than under-report with Washington ESD.

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Will do! I'd rather be completely transparent than risk any issues down the road.

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my company is doing layoffs next month and I might be affected. this thread has been super helpful for understanding how severance works with unemployment. saving this for reference!

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Sorry to hear about the potential layoffs. Hopefully this info helps if you end up needing it!

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If you do get laid off and need to contact Washington ESD with questions, definitely consider using Claimyr to actually get through to someone. It's been a lifesaver for a lot of people dealing with claim issues.

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The system is so broken though. Why should people have to use third-party services just to talk to Washington ESD? The whole unemployment office is understaffed and impossible to reach when you actually need help.

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Totally agree. It's ridiculous that you can't get basic questions answered without jumping through hoops or paying for help.

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I mean, Claimyr doesn't cost that much and it actually works. Sometimes you just need to find solutions that work rather than complaining about the system.

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Does anyone know if severance affects the maximum benefit period? Like if I get 26 weeks of unemployment, does severance change that at all?

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No, severance doesn't affect the maximum benefit period in Washington. You still get the same number of weeks of eligibility regardless of severance.

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Good to know, thanks! I was worried it might somehow reduce the total weeks available.

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this whole thread has been really informative. i had no idea that lump sum severance didn't affect unemployment benefits in washington. learned something new today!

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Same here! I was so confused when I started researching this, but everyone here really helped clear things up.

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For what it's worth, I tried to call Washington ESD about this exact question last month and could never get through. Ended up just filing my claim and figuring it out as I went. Everything worked out fine, but would have been nice to get confirmation upfront.

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This is exactly why services like Claimyr exist. When you can't get through the normal way, sometimes you need an alternative approach.

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Yeah, I'll definitely look into that if I have questions about future claims. The regular phone system is basically useless.

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Quick update for anyone following this thread - I filed my claim yesterday and it went smoothly. There was a specific section asking about severance pay where I reported the lump sum amount. No red flags or issues so far. Hoping to get approved soon!

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Great to hear! Sounds like you're on the right track. Usually takes about 1-2 weeks to hear back from Washington ESD on new claims.

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Nice! Keep us posted on how it goes. Always good to hear success stories for people in similar situations.

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This is such a helpful thread! I'm potentially facing a layoff situation myself and was completely confused about how severance would interact with unemployment benefits. It's really reassuring to see so many people confirm that lump sum severance doesn't affect eligibility in Washington state. The fact that you still need to report it but it won't reduce your weekly benefits makes total sense. Thanks to everyone who shared their experiences - it's way more helpful than trying to decipher the official ESD website!

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