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Tyrone Hill

Backdated job start date overlaps with paid EDD benefits - do I need to repay?

I just started a new position at a tech company this week (yay!), but there's a complication. My employer is backdating my official start date to January 13th, even though I just began working. The problem is I've already certified for those two weeks (1/13-1/26) and received EDD payments for them. Now that I'll be getting a paycheck covering the same period, do I need to contact EDD to reverse those unemployment payments? I'm worried about being hit with an overpayment notice later. Has anyone dealt with this situation before? What's the right way to handle retroactive employment that overlaps with already-paid benefits?

Yes, you absolutely need to report this to EDD. This is considered an overpayment situation since you can't legally receive both unemployment and wages for the same period. Call EDD directly and explain the situation, and they'll issue an overpayment notice. It's much better to self-report than have them discover it later during a quarterly wage review, which could lead to penalties for unreported income. The good news is that since it's a non-fraud overpayment (you didn't intentionally misrepresent), you'll just need to return the money without additional penalty. Make sure to keep documentation from your employer showing the backdated start date.

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Thanks for the clear explanation. I'll call them this week. Should I wait until I actually receive my first paycheck as proof of the backdated employment, or just call them now with my offer letter showing the start date?

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omg this EXACT thing happnd to me last yr! such a hassle. deff call them but good luck getting thru lol took me like 3 days of calling

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I had the same impossible time reaching EDD. Finally used a service called Claimyr (claimyr.com) that got me connected to an EDD rep in under 25 minutes. Saved my sanity after days of calling. They have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km. Worth it for urgent situations like this where you need to talk to someone ASAP.

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You need to report this right away but DON'T just call randomly. Here's the exact process for your situation: 1. Wait until you have your first paystub showing the backdated employment 2. Call the EDD overpayment hotline (NOT the regular number) at 800-676-5737 3. Explain you have a "retroactive income overlap" situation (use these exact words) 4. Request a "voluntary repayment plan" 5. Make sure they note your account that you self-reported They'll likely let you repay it over several months if you can't do it all at once. I went through this last year when my consulting contract was backdated two weeks.

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This is incredibly helpful, thank you! I didn't know there was a specific overpayment hotline. I'll definitely wait until I have my first paystub as evidence before calling.

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IT DOESNT MATTER!!! EDD is so backed up they'll never catch it. My cousin got backdated 3 weeks at his job and never reported anything, this was like 8 months ago. Nothing ever happened. Just saying...

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This is terrible advice that could cause serious problems. EDD regularly performs quarterly wage reviews using employer-reported payroll data. They WILL discover the overlap eventually, and by not self-reporting, the OP risks having the overpayment classified as fraud, which can result in a 30% penalty plus possible disqualification from future benefits. I've worked with many clients who thought they got away with something only to get hit with notices months or even years later.

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Wait, I'm confused. If you didn't actually WORK during those two weeks (Jan 13-26), but they're just backdating your start date for payroll/benefits purposes, does that really count as working? I mean, you weren't actually earning wages by performing work during that time, right? The backdating might just be an administrative thing for their HR system?

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No, that's not how EDD sees it. If you're paid for a period, regardless of whether you physically worked, those are considered wages for unemployment purposes. The issue is about PAYMENT dates, not actual work performed. Once the employer reports those wages for that period to the state (which they're required to do), it will trigger a match against unemployment benefits paid for the same period.

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Congrats on the new job! 🎉 I had something similar happen and just paid it back. Not a big deal in the end.

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Thanks! Did you have to pay it all back at once, or did they let you do a payment plan?

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There's one more important thing to consider: You need to make sure your final certification is correct too. When you certify for your final week(s), you'll need to report the income for those periods as well. If the backdating covers weeks you haven't certified for yet, report those earnings when prompted during your certification. This will prevent creating an even bigger overpayment issue.

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Oh that's a really good point! My next certification is actually due this Sunday, so I'll need to report the income for this current week. But what about the backdated weeks I've already certified for? Do I need to submit some kind of amended certification?

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No need for amended certification for weeks already processed. The overpayment process will handle that. Just make sure your future certifications are accurate. Also, keep in mind that when you call, wait times are still extremely long. Have your claim number, ID, and employment details ready. Document everything - who you spoke with, reference numbers for the call, etc. This will save you headaches if there are any issues with how the overpayment is processed.

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this is why i hate the edd system so much!!! so complicated for no reason. like why cant they just make this stuff simple?!?!

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I went through this exact situation about 6 months ago with a startup that backdated my start date for equity vesting purposes. Here's what I learned: definitely report it proactively, but also ask your employer for a letter explaining WHY they backdated the start date. Sometimes if it's purely administrative (like for benefits enrollment or equity), EDD might handle it differently than if you were actually performing work. In my case, they still required repayment but the documentation helped expedite the process. Also heads up - if your backdated period crosses into a different quarter, it might complicate things with their wage matching system, so mention that when you call. Good luck with the new job though, dealing with this bureaucracy is annoying but at least you're employed again!

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