Do I need to report retention bonus on EDD certification while laid off?

ya gotta report ALL income when applying thats what the form says

You absolutely need to report the retention bonus. EDD considers this as income for the week in which you receive it. When you certify, there's a question asking if you received any income for the weeks you're certifying - that's where you'd report it as "bonus pay" or "other pay" depending on the certification form options. Failing to report it could result in an overpayment situation later if they discover it, which could lead to penalties. One important distinction - you report income when you RECEIVE it, not when you earn it. So if you get the retention bonus on your final paycheck, you report it for that specific week.

Actually, I think retention bonuses are considered severance pay by EDD, not regular wages. When I got laid off in 2023, I had a similar situation. You definitely report it, but if I remember correctly, they don't reduce your weekly benefit amount dollar-for-dollar like with regular wages. EDD has weird rules about different types of payments. Anyone know for sure?

I BEEN STUCK IN A SIMILAR SITUATION!!! My last company gave me a "stay bonus" of $3,000 and I reported it when I certified that week and literally got ZERO benefits that week because the bonus was more than my weekly benefit amount. The next week was normal tho. So yeah u gotta report it but it only affects the 1 week

I just went thru this exact thing when my tech company laid everyone off. You 100% need to report retention bonus on your certification for the week you RECEIVE it (not when they promised it). The EDD system will reduce your benefits that week based on the bonus amount. If your weekly benefit amount is $450 and your bonus is $5,600, you won't receive benefits for that week, but it doesn't affect future weeks. Also, heads up that EDD is almost impossible to reach if you have questions about this. I spent 3 weeks trying to get through on the phone about my situation. Eventually I used Claimyr (claimyr.com) to connect with an EDD rep about my retention bonus question - they have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km The EDD rep confirmed that retention bonuses count as income for the week received. They will cross-check with your employer's reporting too, so don't skip reporting it.

what about taxes?? do they take taxes out of the bonus? i think retention pay is taxed higher than regular income right??

Thanks everyone for all the helpful info! Sounds like I should definitely report the retention bonus for the week I actually receive it, and expect that I probably won't get benefits for that specific week since the bonus is larger than my weekly benefit would be. At least it won't affect future weeks. I'll make sure to select "bonus pay" on the certification form too.

Just wanted to add that you should also keep documentation of the retention bonus - like the offer letter or email from HR that explains it's a "one-time retention incentive payment." If EDD ever questions it during a review or audit, having that paperwork showing it was specifically a retention bonus (not regular wages or severance) can help clarify the situation. I learned this the hard way when they requested additional documentation about a bonus I received during my claim period last year.

One more thing to consider - if your company pays the retention bonus on a separate check from your final paycheck, make sure you report it for the correct week. Some companies issue retention bonuses on the actual last day of work, while others might pay it with the final regular paycheck which could be a week or two later depending on their payroll schedule. The timing of when you physically receive the money (not when you "earned" it by staying until your last day) is what determines which week you report it for on your EDD certification. I've seen people get confused about this timing aspect and report it for the wrong week.

I work for a benefits consulting firm and deal with EDD questions regularly. Everyone's advice here is spot on - you absolutely must report the retention bonus for the week you receive it. A few additional tips: 1) When certifying, look for "bonus pay" as the income type rather than regular wages, 2) If your retention bonus puts you over the weekly benefit amount threshold, you'll get $0 for that week but it won't affect your overall claim, 3) EDD automatically cross-references employer wage reports, so not reporting it will definitely come back to bite you later with overpayment demands and penalties. The good news is retention bonuses are one-time hits to your benefits, unlike ongoing part-time work income that affects you weekly. Keep all your paperwork and you should be fine!

I went through something very similar when my company did layoffs last year. Just to echo what others have said - definitely report that retention bonus! I made the mistake of thinking it was "different" from regular income and didn't report a $2,800 stay bonus initially. EDD caught it about 6 weeks later and I had to pay back the benefits I received during that week plus a penalty. It was a nightmare to deal with. One thing I learned is that when you're certifying, there's usually a dropdown for income type - make sure you select "bonus pay" or "other compensation" rather than regular wages. This helps EDD categorize it correctly in their system. Also, don't stress too much about losing benefits for that one week - I know $5,600 seems like a lot, but it's better to be honest upfront than deal with overpayment issues later. The rest of your claim should proceed normally after that week. Good luck with everything!

I'm going through a similar situation right now with a retention bonus from my employer before getting laid off. Reading through all these responses has been incredibly helpful - especially learning that I need to report it for the week I actually receive the payment, not when I earned it. The distinction about selecting "bonus pay" instead of regular wages when certifying is something I definitely wouldn't have known otherwise. It sounds like the consensus is clear: report it honestly for that specific week, expect zero benefits that week since the bonus will likely exceed the weekly benefit amount, but then everything should proceed normally after that. Thanks to everyone who shared their experiences - it's really reassuring to hear from people who have actually been through this process!