Do I need to report vacation payout to EDD while on SDI disability?

you dont have to report vacation pay its not considered wages while on disability

Actually, YES you DO need to report vacation pay on SDI. It's considered wages and can reduce your disability benefit amount for those weeks. When I was on disability last year, I had to report my vacation payout on the "Wages Earned" section of my SDI certification. EDD considers vacation pay as wages because it's money you earned while working, even if you're receiving it while disabled. Don't listen to incorrect advice or you could end up with an overpayment notice later.

I had the EXACT same situation last year after my hip replacement!!! So frustrating trying to figure this out. I called EDD like 40 times and kept getting disconnected. When I finally got through, they told me that YES vacation payout DOES count as wages and you MUST report it for the period when you receive it. It will reduce your benefit for that week but won't affect other weeks. Don't ignore this or you'll regret it later!!

To clarify the correct information: Yes, vacation pay must be reported to EDD when you're receiving SDI benefits. According to the EDD guidelines, any form of paid leave (vacation, PTO, holiday pay) is considered wages and must be reported during the period you receive it, not when it was earned. When you certify for benefits, you'll report this amount in the "wages earned" section for the period when you receive the payment. Depending on the amount, it may reduce your benefit payment for that certification period. The reduction follows a partial benefit calculation - it's not always dollar-for-dollar. If you don't report it and EDD discovers this later (which they likely will through employer reporting), you'll receive an overpayment notice and have to repay those benefits plus potentially face penalties.

im going thru this right now too lol... my company paid out 2 weeks vacation when i started maternity disability and i forgot to report it. now i got a notice saying i owe $1450 back to edd. such bs honestly but yeah you definitely need to report it

If you're having trouble reaching EDD to get clarification on this, I recommend using Claimyr. I was in the same situation trying to figure out if my severance would affect my disability. After days of calling and getting disconnected, I used Claimyr (claimyr.com) and got connected to an EDD representative in about 25 minutes. They have a video showing how it works here: https://youtu.be/1X-mEsLtbmQ?si=1hcSq3KFtCr4oAmd The rep I spoke with was able to explain exactly how to report my payment and how it would affect my benefits. Saved me from making a mistake that would have cost me later.

Important note: make sure you report the vacation pay for the specific period when you RECEIVE the payment, not when you earned it. EDD cares about when the money hits your bank account. Also, keep documentation of everything - a copy of your pay stub showing the vacation payout, any emails from HR about it, etc. This will be helpful if there's any confusion later.

When I was on disability last year I had a sorta similar situation but with sick time instead of vacation. I remember reading through all the EDD paperwork and getting SO confused. They don't make anything clear!! Anyway I ended up calling and waiting forever but they told me I had to report it. Good luck with your back surgery recovery! Those are rough, my dad had one last year and it took him like 4 months to feel normal again.

just to add another data point - i'm on sdi right now for pregnancy disability and my employer paid out some vacation hours on my last check. i reported it on my certification and my payment was reduced for that period but then went back to normal for the next one. better to report and get slightly less for one period than deal with overpayment mess!

I went through this exact situation when I was on SDI for a knee surgery. Based on my experience and what I learned from EDD, you absolutely MUST report vacation payouts as wages. I made the mistake of not reporting mine initially because I thought "I'm not working so it's not wages" - but EDD considers it earned income regardless of when you receive it. I ended up getting an overpayment notice 2 months later for $800. The good news is that when you do report it correctly, it usually only reduces your benefits for that specific certification period, not permanently. Make sure to report it for the week you actually receive the payment, not when it was earned. Keep all your documentation too - pay stubs, HR emails, everything. It's such a pain but way better than dealing with overpayment collections later!