EDD audit for multiple gig jobs - claim now on hold after underreporting income
I'm freaking out right now. Just got a call from EDD saying they're auditing my previous claim because I apparently underreported about $4,100 in income over a 6-month period. The thing is, I was doing these small one-day gigs for SIX different companies through various apps, and each job only paid like $100-200. It was incredibly confusing trying to calculate and report all that while certifying every two weeks! Some weeks I'd do 3-4 random gigs, other weeks nothing. Now my current claim is on hold pending this investigation. The rep mentioned something about "potential overpayment" and "false statement penalty weeks" but wasn't very clear. How serious is this? Will I have to pay back all my benefits? Could I face fraud charges? I wasn't trying to hide income - I genuinely struggled to keep track of all these tiny gig payments from different places. Has anyone dealt with something similar? I'm completely stressed out.
22 comments
Aisha Jackson
First, take a deep breath. This happens more often than you think, especially with gig workers. The EDD system wasn't really designed for people working multiple micro-jobs. Here's what you need to do: 1. Gather ALL your income documentation from those 6 companies - every payment statement, 1099, etc. 2. Create a spreadsheet showing exactly when you received each payment 3. Compare that with your certification weeks 4. Be prepared to explain the confusion in your reporting You'll likely need to repay the difference plus a 30% penalty on the overpayment. They may also assess penalty weeks (weeks you won't receive benefits in the future). But if you can show this was an honest mistake and not deliberate fraud, it's typically not treated as criminal.
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Adrian Connor
•Thank you, this helps calm me down a bit. Do you know if they'll let me set up a payment plan? There's no way I can pay back $4k+ all at once. And will they take the penalty weeks on my current claim or a future one? The rep wasn't clear about the timeline for all this.
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Ryder Everingham
omg i went through the EXACT same thing last year!! gig work is impossible to report right. i had jobs from 5 different apps and sometimes the money would hit my account days after i actually did the work so i never knew what to report when. EDD eventually put my claim on hold for like 3 weeks while they investigated
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Adrian Connor
•What happened in your case? Did they make you pay everything back? Did you get penalty weeks? I'm scared this is going to drain my savings completely.
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Ryder Everingham
they made me pay back about 2k plus a penalty. but i just kept calling until i got someone reasonable who set me up with a payment plan. $75/month. not fun but manageable. and yeah i got 5 penalty weeks which sucked but at least i didnt lose my whole claim
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Lilly Curtis
•The inconsistency with EDD is INSANE. My cousin had almost identical situation (underreported by like $3500) and they slapped him with 11 penalty weeks!!! AND he had to pay it all back within 6 months. The system is basically designed to punish people who work multiple jobs. When you're scrambling between gigs trying to survive, who has time to keep perfect records???
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Leo Simmons
This is a relatively common issue with gig workers. Here's what you need to understand: 1. For non-fraudulent misreporting, EDD typically assesses: - Repayment of the overpaid benefits - 30% penalty on top of the overpayment amount - False Statement Penalty Weeks (often 2-15 weeks depending on the amount) 2. False Statement Penalty Weeks mean weeks where you qualify for benefits but won't receive payment. These apply to current or future claims. 3. The key is demonstrating this was unintentional. Gather all earnings proof and create a clear timeline showing the complexity of your situation. Request a phone interview to explain directly. 4. You can absolutely request a payment plan. Standard repayment plans range from 12-24 months depending on the amount owed. 5. If you disagree with their findings, you have 30 days to appeal.
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Adrian Connor
•This is incredibly helpful information, thank you. I'm going to start gathering all my records tonight and putting everything in a spreadsheet. I definitely want to request that phone interview to explain my situation. Do I need to wait for them to contact me again, or should I be proactive and call them?
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Leo Simmons
Be proactive and call them. The sooner you address this, the better. However, getting through to EDD can be extremely difficult. When you call, you'll likely hear "we're experiencing high call volume" and get disconnected.
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Lindsey Fry
After spending 2 weeks trying to get through to EDD about a similar issue, I finally discovered Claimyr. It's a service that helps you get through to an EDD representative without spending days redialing. Saved me so much frustration! You can see how it works in their video demo: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km Their website is claimyr.com - definitely worth looking into when you need to talk to someone about your case. In situations like yours, speaking directly with a rep is crucial to explain the gig work confusion.
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Saleem Vaziri
•does that actually work? i tried calling edd 47 times in one day last month. FORTY SEVEN TIMES. and never got through. might try this if it actually works
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Lindsey Fry
Yeah it works! I was skeptical too but it got me through to an actual person in about 20 minutes after spending days trying on my own. Definitely better than the call-hang up-redial cycle of doom.
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Kayla Morgan
I HATE how EDD handles gig workers!!!! The whole system is designed for traditional employment but they expect us to somehow perfectly report income from 5 different apps that all pay differently and at different times?? I got hit with a false statement penalty for "underreporting" too but it was just because the stupid app I worked for delayed payments by 2 weeks! HOW AM I SUPPOSED TO REPORT THAT CORRECTLY????
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Adrian Connor
•Exactly! One of my gigs would batch payments every 10 days, another paid immediately, and another took up to 3 weeks. There were literally times I did work but had NO IDEA when I'd get paid or exactly how much after their fees. The certification system just doesn't work for our situation.
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Aisha Jackson
For your payment plan question: Yes, EDD offers payment plans for overpayments. The length depends on the amount owed and your financial situation. They'll have you complete a Statement of Financial Condition (DE 355A) where you document your income, expenses, and assets. For penalty weeks: These will apply to your current claim if it's active. If your claim ends before all penalty weeks are served, the remaining weeks will apply to your next claim. So if you're assessed 10 penalty weeks but only have 4 weeks left on your current claim, the other 6 will carry forward. In the hearing, emphasize that this was a good faith error due to the complexity of reporting multiple gig incomes on a system designed for traditional employment. Keep it factual and avoid sounding defensive.
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Adrian Connor
•Thank you so much for all this information. I appreciate you taking the time to explain everything. I'm still stressed but feel a lot more prepared now. Going to start organizing all my documentation right away.
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Ryder Everingham
btw make sure u print out ALL ur bank statements too! they wanted to see when the money actually hit my account vs when i did the work. that was super important in my case
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Lilly Curtis
Got audited for underreporting too, went through hell trying to explain that my Uber payouts don't match exactly when I actually WORKED the hours! Ended up with 7 penalty weeks and had to pay back $3200. Called EDD probably 200 times over three weeks. What a nightmare. The person I finally reached was actually pretty understanding though and helped set up a payment plan I could actually afford.
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Kayla Morgan
•Did they audit EVERY WEEK or just overall? I'm terrified they're going to go through my claim week by week looking for errors. There's NO WAY I reported everything 100% correctly with 4 different gig apps!
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Lilly Curtis
They went through everything week by week, comparing my certifications against what the companies reported on my 1099s. The most annoying part was they counted the money as earned when the companies PAID me, not when I actually did the work. So even though I was trying to be honest on my certifications, their system considered it wrong.
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Leo Simmons
Based on the information you've provided, it sounds like you're facing a non-fraud overpayment situation. Here's the likely process you'll go through: 1. You'll receive a Notice of Potential Overpayment explaining the discrepancy 2. You'll be scheduled for a phone interview (this is why getting through to EDD is critical) 3. After the interview, you'll receive a Notice of Overpayment with the exact amount and any assessed penalties 4. You'll have options to: - Pay in full - Request a payment plan - File an appeal if you disagree - Request a waiver (difficult to get approved) For gig workers, I recommend keeping a detailed log of all work performed going forward - date of work, company, amount earned, and date paid. This helps tremendously with accurate reporting.
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Adrian Connor
•Thank you for breaking down the process. I'm going to take your advice about keeping better records going forward. I've already started organizing everything from those 6 months to show exactly what happened. Really appreciate everyone's help here - it's made a stressful situation a bit more manageable.
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