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So I recently shut down my small landscaping business after about four years of running it solo with a couple of part-time employees. The work just dried up — lost two big commercial contracts back to back and couldn't keep things afloat. I've been paying into unemployment through my payroll for years and never thought twice about it. Now that I'm on the other side of things, I'm genuinely wondering: can a business owner collect unemployment through California EDD? I know I was classified as a sole proprietor and was the owner-operator. I did pay myself a W-2 wage though, not just owner draws. My employees always had UI deducted from their checks, and I treated my own paycheck the same way. Does that matter? I tried looking this up on the EDD website but the language is super confusing — it talks about 'covered employment' but doesn't clearly say whether that includes business owners who paid themselves wages. Has anyone else gone through something similar? Did you actually manage to file a claim and get approved, or did EDD deny you because of the ownership thing? I really need some income while I figure out what's next.
Okay so I just got laid off last Friday and I have absolutely no idea where to start. I've never collected unemployment benefits in my life and honestly the whole California EDD website looks overwhelming. I keep hearing people say 'just file online' but when I actually go to the UI Online portal it's like... where do I even begin? How does filing for unemployment work exactly? Like what information do I need, what happens after I submit, and how long before I actually see any money? I worked in restaurant management for about 6 years, my employer let me go due to 'restructuring' which from what I understand means I should qualify but I'm not totally sure. Any help walking me through this would be amazing because I have rent due in three weeks and I'm starting to panic a little.
UPDATE: I filed this morning! It actually took me less than 30 minutes since I had everything ready based on all your advice. I selected 'lack of work' as my reason for separation, set up direct deposit, and got a confirmation number. Now it says my claim is being processed and I should hear within 10 business days. I also signed up for CalJOBS while I was at it. Feeling way less panicked than I was yesterday. Thank you everyone so much this thread genuinely helped me more than anything else I found online.
Awesome! Keep an eye on your UI Online account over the next week or two for any 'issues' or 'holds' on your account. If anything pops up that freezes your claim and you can't get through to EDD by phone, remember that Claimyr option I mentioned - claimyr.com. Hopefully you won't need it but good to have in your back pocket. Best of luck!
For anyone finding this thread later with the same question about how does filing for unemployment work - the short version: - File at UI Online as soon as possible after your last day - Pick qualifying separation reason (layoff = lack of work) - Certify every two weeks honestly - Register on CalJOBS within 21 days - Do 3 documented job search activities per week - Report any earnings when you certify - If your claim gets stuck or you need to reach EDD, be persistent - and if phone calls aren't working, services like Claimyr (claimyr.com) can help you actually get through to an agent The process itself isn't complicated. The complications come from edge cases, employer disputes, or the phone system when something needs fixing.
So I got let go from my warehouse job last week and I'm honestly not sure where I stand with unemployment. My supervisor called it a 'termination' but didn't give me any real explanation beyond 'it's not working out.' I've been there almost two years with no written warnings, no performance improvement plan, nothing documented. Now I'm sitting here wondering if California EDD is even going to approve my claim or just deny it because I was fired rather than laid off. I always assumed you couldn't get unemployment if you were fired but a coworker told me that's not always true? I filed online through UI Online already but I'm nervous about the interview they mentioned might be required. Has anyone actually been through this where they were fired and still got approved for California unemployment benefits? What does California EDD actually look at when deciding these cases?
I'm in a similar boat - terminated last month from a tech job after a new manager came in and just started clearing out the team. No performance issues that I know of, was even praised in my last review. Filed my claim and it's been sitting in adjudication. Starting to panic about how long this takes.
Adjudication after team purge situations sounds like exactly what I'm going through. Did anyone here get through adjudication quickly or is weeks of waiting normal?
Adjudication timelines vary a lot. Simple cases can resolve in a week or two, contested ones can run 4-8 weeks or longer. The fact that you're in adjudication just means they're investigating, not that you're heading toward denial. Mass layoffs and management-initiated team clearings tend to resolve in the claimant's favor pretty regularly.
Just want to close the loop for anyone reading this later - I got my determination letter today, about 11 days after filing. APPROVED. Two years of employment, no documented warnings, vague reason for termination = EDD sided with me. They scheduled me for an interview but it was brief, about 12 minutes on the phone, and the interviewer was professional and fair. Just answered honestly about what happened and it went fine. The job search and weekly certification requirements kicked in immediately so make sure you're on top of those. Good luck to everyone else going through this.
Love seeing this outcome! Congrats on the approval. The key lesson for anyone reading: just file and let EDD make the determination. Don't assume being fired automatically disqualifies you.
So I've been running a small landscaping company for about two years now and my accountant just brought up something that completely threw me off - apparently there's been some confusion about whether I as the business owner need to be paying into California EDD unemployment insurance on myself. I set up as a sole proprietor initially but recently converted to an S-corp to save on self-employment taxes. Now I'm getting conflicting info about whether I'm required to pay UI payroll taxes on my own wages that I draw as an officer/employee of the corporation. My accountant says one thing, my business attorney says another, and when I tried calling California EDD directly I sat on hold for 2 hours and got disconnected. Has anyone dealt with this situation? Do business owners have to pay unemployment on themselves as corporate officers? I'm stressed because if I've been doing this wrong I could owe back taxes and penalties.
for anyone following this who still can't get through to California EDD employer services by phone - I tried the Claimyr thing mentioned earlier after seeing it in this thread and it actually worked for me. Had an employer account question about quarterly reporting and got connected to an agent in about 40 minutes without sitting there hitting redial. claimyr.com if you need it. not affiliated just genuinely impressed
To bring this back to OP's original question with a clean summary since the thread has gotten long: 1. As a sole proprietor: No, you did not need to pay UI on yourself. Correct situation. 2. After S-corp conversion: Your officer wages ARE generally subject to California UI/SDI/ETT unless you file for and qualify for the corporate officer exclusion. 3. As 100% owner: You likely qualify for the officer exclusion but must proactively file for it - it's not automatic. 4. Immediate action items: Check e-Services for Business to see if you're registered as employer, confirm with California EDD whether officer exclusion was elected, consult a California payroll specialist about back obligations if any. 5. Don't panic: Voluntary compliance is treated more favorably than being caught in an audit. Hope this helps clear it up for you and anyone else googling this in the future.
I just got hit with an overpayment notice from California EDD saying I owe back $4,200 in UI benefits from earlier this year. I'm completely blindsided by this. I reported every single week accurately - my part-time hours, my earnings, everything. I even kept a spreadsheet tracking what I entered on each weekly claim certification just in case something like this ever came up. The notice says there was an 'overpayment determination' but gives almost no detail about what I supposedly did wrong. I work in logistics and got laid off in February. I was picking up a few shifts here and there during my claim period and reported each one. Now they're saying I was paid more than I should have been? I want to write an appeal letter but I have no idea where to start. What should I actually include in the appeal letter? Should I attach all my pay stubs? Do I need to reference specific weeks? Has anyone successfully appealed one of these overpayment notices and what did your letter look like?
For anyone writing an appeal letter for a California EDD unemployment overpayment, here's a simple structure that works: Paragraph 1: 'I am writing to appeal the overpayment determination dated [DATE], Claim ID [NUMBER], in the amount of $[AMOUNT].' Paragraph 2: Brief factual background - when you filed, what type of work situation you had, that you made every effort to report accurately. Paragraph 3+: Week-by-week breakdown of disputed periods with specific dates and amounts. Final paragraph: 'I have attached the following documentation in support of my appeal: [list everything]' Sign with your full name, contact info, and date. Keep a copy. Send certified mail or upload to UI Online with confirmation.
One more thing nobody mentioned - after your appeal is filed and before your hearing, you can also request to see your complete EDD file. This includes everything EDD has on your claim - all your weekly certifications as they recorded them, employer wage reports, any notes on your account. Sometimes the overpayment is based on incorrect information IN that file and seeing it helps you know what you're actually arguing against.
Yara Sabbagh
UPDATE FROM OP (kind of): I called EDD today using Claimyr after seeing recommendations in this thread and actually got through to an agent within about an hour and a half. The agent was able to pull up my employer account and confirmed that my payroll service had NOT been remitting UI contributions on my wages as the owner — apparently they had flagged me as an excluded sole proprietor from day one. So regular UI is almost certainly off the table for me. HOWEVER, the agent told me to file anyway and list my staffing agency W-2 wages from 14 months ago because those are definitely covered wages and might be enough to establish a claim based on JUST those wages. Going to file tomorrow and see what base period calculation comes out to. Really appreciate everyone's help in this thread.
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Giovanni Conti
The Claimyr route was definitely worth it for getting a concrete answer quickly. Hope the claim goes through based on those wages!
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Mei Liu
keep us updated!! curious how this turns out
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Amara Chukwu
For anyone finding this thread later: the California EDD rules around business owner unemployment are genuinely complicated and vary by business structure. The short version: - Sole proprietors: almost always excluded unless you have other covered W-2 employment - Partnership partners: usually excluded - Corporate officers with proper payroll + UI tax remittance: potentially eligible - LLC members: depends on tax classification and payroll setup Always verify your UI contribution history with EDD before assuming you qualify OR don't qualify. The answer isn't always what you expect, and the only way to know for sure is to look at the actual records.
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Andre Rousseau
AuthorAgreed, this plus the DE 9 explanation earlier are the two most useful things I got from this whole discussion. Thank you everyone.
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Yara Sabbagh
came back to say my claim based on the staffing wages was approved! benefit amount is lower than it would've been if my business wages counted but getting something is infinitely better than getting nothing. the base period did include those wages and EDD processed it without adjudication since there was no ownership question for those particular wages. thanks to everyone who helped.
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