Do I need to report vacation payout to EDD while on SDI disability?
I just started my SDI claim last month after a back surgery and my company is paying out my unused vacation time (about 80 hours). I'm confused about whether I need to report this to EDD since it's not wages I'm actively earning. The vacation payout will be on my next regular paycheck date even though I'm not working. Will this affect my SDI benefits? Do I need to report it somewhere in my certification? I don't want to mess up my claim or have to pay back benefits later.
42 comments


Connor Murphy
you dont have to report vacation pay its not considered wages while on disability
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Zainab Ali
•Are you sure? I thought any income needed to be reported. My HR department wasn't clear about it either.
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Yara Nassar
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.
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StarGazer101
•This happened to my sister too!!! She didn't report vacation payout and got hit with a $1,200 overpayment notice 3 months later. Such a headache dealing with that.
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Keisha Jackson
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!!
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Zainab Ali
•Thanks for sharing your experience. Did your benefits get reduced by the full amount of vacation pay or just partially?
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Keisha Jackson
•It was partial reduction - they have some calculation where if you earn over a certain amount they reduce benefits proportionally. For me, I got about half my normal SDI payment for that week.
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Paolo Romano
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.
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Zainab Ali
•Thank you for the detailed explanation. This makes sense. I'll make sure to report it on my next certification. Do you know if sick pay is treated the same way?
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Paolo Romano
•Yes, sick pay is treated the same way as vacation pay. All forms of paid leave need to be reported as wages during the period you receive them while on SDI.
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Amina Diop
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
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Keisha Jackson
•Ugh that sucks! Are they letting you do a payment plan at least? EDD can be so frustrating to deal with.
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Amina Diop
•yea they are but its still annoying. wish my HR had told me about this!
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Oliver Schmidt
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.
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Zainab Ali
•Thanks for the tip! I've been trying to call EDD for days with no luck. I'll check this out.
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Yara Nassar
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.
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Zainab Ali
•Good advice, thank you. My payment is scheduled for next Friday, so I'll report it in that certification period.
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Natasha Volkov
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.
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Zainab Ali
•Thanks for the well wishes! Recovery has been challenging but I'm making progress. Seems like the consensus is definitely to report the vacation pay.
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StarGazer101
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!
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Kirsuktow DarkBlade
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!
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Lim Wong
I'm dealing with a similar situation right now - just started my SDI claim for a shoulder injury and my company is processing my vacation payout too. Reading through all these responses has been super helpful! It's clear that vacation pay definitely needs to be reported as wages during the period you receive it. I was initially confused like you because it feels weird calling it "wages" when you're not actively working, but EDD treats any form of paid leave as earned income. The stories about people getting hit with overpayment notices months later are scary enough to make me want to be extra careful about reporting everything correctly. Thanks everyone for sharing your experiences - it really helps newcomers like us navigate this confusing process! Hope your back surgery recovery goes smoothly.
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Luca Romano
•Thanks for sharing your experience! It's really reassuring to hear from someone going through the same thing right now. I was definitely in the same boat thinking it was weird to call vacation pay "wages" when we're not working, but all these responses have made it crystal clear that EDD doesn't see it that way. The overpayment stories are definitely motivating me to be super careful about reporting everything properly. Good luck with your shoulder injury recovery! Hopefully we both get through this process without any major headaches.
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Daniela Rossi
I'm currently on SDI for a work-related injury and just went through this exact situation a few weeks ago. Like many others have mentioned, you absolutely do need to report vacation payouts as wages - I learned this the hard way when I initially didn't report mine and got a call from EDD asking about it. Fortunately I caught it early and was able to correct it before getting hit with an overpayment notice. What helped me was calling it during off-peak hours (early morning around 8am) and I actually got through pretty quickly. The rep explained that vacation pay is considered "deferred wages" since you earned it while working, even though you're receiving it while disabled. They reduced my benefit for that one certification period but everything went back to normal after that. Definitely report it during the period you receive the payment, not when you earned the vacation time. Keep all your documentation and don't stress too much - as long as you report it correctly, it's just a temporary reduction for that period. Better safe than sorry with EDD!
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Daniel White
•Thank you so much for sharing your detailed experience! It's really helpful to hear from someone who went through this recently. I'm glad you were able to catch it early and avoid the overpayment notice. Your tip about calling during off-peak hours is great - I'll definitely try that if I need to speak with someone directly. The explanation about vacation pay being "deferred wages" makes a lot of sense and helps me understand EDD's reasoning better. I feel much more confident now about reporting my vacation payout correctly when I receive it next week. Really appreciate everyone taking the time to share their experiences here!
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Elijah Knight
I'm also new to SDI and dealing with a similar situation - my employer is paying out my accrued sick time along with some vacation hours while I'm on disability for a medical procedure. After reading through all these responses, it's crystal clear that ANY form of paid leave (vacation, sick time, PTO, etc.) must be reported as wages during the certification period when you actually receive the payment. The multiple stories about people getting overpayment notices months later for not reporting this stuff is honestly terrifying! I'd rather have my benefits reduced for one week than deal with having to pay back hundreds or thousands of dollars later. Thanks to everyone who shared their experiences - it's so helpful to learn from people who've actually been through this process. EDD's documentation really isn't clear about this stuff, so having real-world examples makes all the difference. Hope your recovery goes well!
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Amina Diallo
•Absolutely agree with you! Reading all these experiences has been a real eye-opener. I'm also new to SDI and was initially confused about what counts as "wages" when you're not actively working, but the consensus here is crystal clear. The overpayment stories are definitely scary enough to motivate anyone to report everything properly! It's frustrating that EDD's own documentation isn't more explicit about this stuff - having to rely on community experiences to understand the rules properly. Thanks for adding your perspective, and I hope your medical procedure recovery goes smoothly too. Better to be overly cautious with reporting than deal with collections later!
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Butch Sledgehammer
I'm new to SDI and have been lurking here trying to learn from everyone's experiences. Just wanted to say THANK YOU to everyone who shared their stories about vacation pay - this thread has been incredibly helpful! I'm starting my disability claim next week for surgery and my HR mentioned something about vacation payout but wasn't clear about reporting requirements. After reading all these responses, it's obvious that vacation pay absolutely must be reported as wages during the period you receive it. The overpayment horror stories are definitely enough motivation to be extra careful about this! It's crazy that EDD's own materials don't make this clearer - having to piece together the rules from community experiences. Really appreciate everyone taking the time to help newcomers navigate this confusing process!
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Ava Martinez
•Welcome to the community and glad this thread has been helpful! It's so frustrating that EDD doesn't make these rules clearer in their official documentation. I'm actually in a similar boat - just started my claim last month after back surgery and was totally confused about the vacation payout until I found this discussion. The collective wisdom here has been invaluable! Good luck with your surgery next week, and definitely report that vacation pay when you get it. Better to have reduced benefits for one period than deal with overpayment collections later. Hope your recovery goes smoothly!
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Freya Ross
I'm also new to SDI (just approved for a work injury claim) and this entire thread has been such a lifesaver! I was completely in the dark about vacation payouts and EDD requirements. My employer mentioned they'll be paying out my remaining PTO but gave me zero guidance on reporting it. After reading everyone's experiences here, especially the overpayment horror stories, I'm definitely going to report every penny as wages when I receive it. It's ridiculous that we have to figure this stuff out through community forums instead of having clear official guidance from EDD. Thanks to everyone who took the time to share their real-world experiences - it's making a huge difference for those of us just starting this process. The consensus is crystal clear: report all paid leave as wages during the period you receive it, keep all documentation, and better safe than sorry with EDD!
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Adaline Wong
•Welcome to the community! I'm also pretty new to SDI and this thread has been absolutely invaluable. It's honestly shocking how unclear EDD's official materials are about basic things like vacation payouts - you'd think they'd want to prevent overpayment issues by being more explicit about reporting requirements. But the community knowledge here is gold! I was in the exact same boat feeling confused about what counts as "wages" when you're not working, but everyone's real experiences make it super clear. The overpayment stories definitely put the fear of God in me about being careful with reporting everything. Hope your work injury recovery goes well, and definitely keep us posted on how your PTO reporting goes!
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ShadowHunter
I'm completely new to SDI and this discussion has been incredibly eye-opening! I just filed my claim last week for a medical leave and my company mentioned they'll be processing my vacation payout, but like so many others here, I had no idea about the reporting requirements. Reading through everyone's experiences - especially the overpayment notices people received months later - has made it crystal clear that vacation pay absolutely MUST be reported as wages during the period you actually receive it. It's honestly frustrating that EDD's official documentation doesn't spell this out more clearly. We shouldn't have to piece together critical information from community forums! But I'm so grateful everyone here shared their real-world experiences. The consensus couldn't be clearer: report all forms of paid leave (vacation, sick time, PTO) as wages when you receive them, keep all documentation, and it's way better to have reduced benefits for one certification period than deal with collections and penalties later. Thanks to everyone for helping newcomers like me navigate this confusing system!
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Leslie Parker
•Welcome to the community and the SDI journey! I'm also brand new to this process and have been reading through this entire thread multiple times because it's honestly the clearest explanation I've found anywhere about vacation pay reporting. Like you said, it's crazy that we have to rely on everyone's personal experiences to understand something this basic - EDD should really make this stuff more transparent in their official materials. I was initially thinking the same way as the original poster about vacation pay not being "real wages" since we're not actively working, but all these stories about overpayment notices are definitely enough to convince me to report everything properly. Better to be overly cautious than get surprised with a huge bill later! Hope your medical leave goes smoothly and thanks for adding another perspective from us newcomers trying to figure this all out.
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Jason Brewer
I'm brand new to both SDI and this community, and wow - this thread has been absolutely invaluable! I just got approved for my disability claim after a car accident and my employer mentioned they'll be paying out my accumulated vacation time, but they gave me zero guidance on how to handle it with EDD. Reading through everyone's real experiences here has made it crystal clear that vacation payouts absolutely must be reported as wages during the certification period when you actually receive the payment. The multiple stories about people getting hit with overpayment notices months later for not reporting this stuff is honestly terrifying! It's so frustrating that EDD's official documentation doesn't make these critical details clear - we shouldn't have to piece together essential information from community forums, but I'm incredibly grateful everyone here took the time to share their experiences. The consensus is undeniable: report ALL forms of paid leave as wages when received, keep thorough documentation, and it's way better to have temporarily reduced benefits than deal with collections later. Thank you all for helping newcomers like me navigate this confusing system - this community knowledge is priceless!
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CosmicCrusader
•Welcome to the community! I'm also completely new to SDI and just started reading through this forum to learn from everyone's experiences. This thread has been such a goldmine of information - I had no idea about vacation pay reporting requirements until I found this discussion. Like you, I'm shocked that EDD's official materials don't clearly explain something this important. The overpayment stories people shared here are definitely scary enough to make me want to triple-check everything I report! I'm still waiting for my claim to be approved, but when it goes through I'll definitely be extra careful about reporting any payouts from my employer. It's amazing how much more helpful real community experiences are compared to trying to decipher EDD's confusing official guidance. Hope your recovery from the car accident goes well, and thanks for adding another newcomer perspective to this incredibly helpful discussion!
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Anastasia Kozlov
I'm also new to SDI and this thread has been incredibly helpful! I just submitted my application last week for a workplace injury and my HR department mentioned they'll be processing my remaining PTO, but like everyone else here, they didn't give me any clear guidance on EDD reporting requirements. After reading through all these real-world experiences, especially the scary overpayment stories, it's obvious that ALL forms of paid leave must be reported as wages when you actually receive them. It's honestly ridiculous that EDD's official documentation is so unclear about something this critical - we shouldn't have to rely on community forums to understand basic reporting rules! But I'm so grateful everyone took the time to share their experiences here. The message is crystal clear: report vacation pay, sick pay, PTO - everything - as wages during the certification period you receive it, keep all your paperwork, and it's much better to have reduced benefits for one week than deal with overpayment collections later. Thanks to this community for filling in the gaps where EDD's official guidance falls short!
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Amara Torres
•Welcome to the community and thanks for sharing your experience! I'm also brand new to SDI and just going through the application process myself. This entire thread has been such an incredible resource - I can't believe how much clearer everyone's real-world experiences are compared to EDD's confusing official materials. Like you, my employer mentioned something about vacation payout but gave me absolutely zero guidance on reporting requirements. Reading all these overpayment horror stories has definitely motivated me to be extra careful about reporting everything properly when my claim gets approved. It's crazy that something this important isn't explained clearly in EDD's documentation, but thankfully we have this community to help fill in those critical gaps. Hope your workplace injury recovery goes smoothly, and I'll definitely be following everyone's advice about reporting all paid leave as wages when received!
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Logan Greenburg
I'm completely new to SDI and just joined this community to learn from everyone's experiences. This thread has been absolutely incredible - I had no clue about vacation pay reporting until I found this discussion! I'm currently going through the application process for a medical leave and my company mentioned they'll pay out my unused vacation time, but like so many others here, they gave me zero guidance on EDD requirements. After reading through all these real experiences, especially the terrifying overpayment stories, it's crystal clear that vacation payouts MUST be reported as wages during the period you receive them. It's honestly shocking that EDD's official documentation doesn't clearly explain something this crucial - we shouldn't need community forums to understand basic reporting rules! But I'm so thankful everyone shared their stories here. The message couldn't be clearer: report ALL paid leave (vacation, sick time, PTO) as wages when you receive it, keep detailed records, and it's way better to have temporarily reduced benefits than face collections later. This community knowledge is invaluable for newcomers like me trying to navigate EDD's confusing system!
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GalaxyGazer
•Welcome to the community! I'm also brand new to SDI and just started my claim process this week. This thread has been such a lifesaver - I was completely lost about vacation pay reporting until I stumbled across this discussion. Like you, my employer mentioned vacation payout but gave me absolutely no guidance on what to do about EDD reporting. Reading everyone's real experiences here, especially those scary overpayment notices, has made it crystal clear that we need to report everything properly from day one. It's so frustrating that EDD's official materials are so confusing about basic stuff like this - thank goodness for communities like this where people share their actual experiences! I'm definitely going to be extra careful about reporting any paid leave as wages when I receive it. Better safe than sorry with EDD! Hope your medical leave application goes smoothly.
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Alfredo Lugo
I'm also brand new to SDI and this community - just got approved for my claim yesterday after a work injury and stumbled across this thread while trying to figure out what to do about my vacation payout. This discussion has been absolutely invaluable! Like so many others here, my HR department mentioned they'd be processing my unused PTO but gave me zero guidance on EDD reporting requirements. After reading through everyone's real experiences, especially those nightmare overpayment stories, it's crystal clear that ALL forms of paid leave must be reported as wages during the certification period when you actually receive the payment. It's honestly mind-boggling that EDD's official documentation doesn't clearly spell out something this critical - we shouldn't have to piece together essential information from community forums, but I'm incredibly grateful everyone took the time to share their experiences here. The consensus is undeniable: report vacation pay, sick pay, PTO - everything - as wages when received, keep all documentation, and it's much better to have reduced benefits for one week than deal with overpayment collections and penalties later. Thanks to this amazing community for providing the clear guidance that EDD's official materials completely fail to deliver!
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Ashley Adams
I'm also brand new to SDI and just found this community while researching my own situation - this thread has been incredibly helpful! I just started my disability claim this week for a medical procedure and my employer mentioned they'll be paying out my accrued vacation time, but like everyone else here, they didn't provide any clear guidance on EDD reporting requirements. After reading through all these real-world experiences, especially the overpayment horror stories, it's crystal clear that vacation payouts absolutely must be reported as wages during the certification period when you actually receive the payment. It's honestly frustrating that EDD's official documentation is so vague about something this important - we shouldn't have to rely on community forums to understand basic reporting rules, but I'm so grateful everyone shared their experiences here. The message is loud and clear: report ALL forms of paid leave as wages when received, keep thorough documentation, and it's much better to have temporarily reduced benefits than deal with collections later. Thank you to everyone who took the time to help newcomers like me navigate this confusing system - this community knowledge is priceless!
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Shelby Bauman
•Welcome to the community! I'm also completely new to SDI and just started my claim process last week. This thread has been such an amazing resource - I was totally confused about vacation pay reporting until I found this discussion. Like you, my company mentioned vacation payout but gave me absolutely no guidance on what to report to EDD. Reading everyone's real experiences here, especially those scary overpayment stories, has definitely convinced me to report everything properly from the start. It's crazy that we have to learn this critical stuff from community forums instead of clear official guidance from EDD! I'm definitely going to be super careful about reporting any paid leave as wages when I receive it. Better to have reduced benefits for one period than get hit with a huge overpayment bill later. Thanks for adding another newcomer perspective - it's reassuring to know I'm not the only one trying to figure this all out! Hope your medical procedure goes well.
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