EDD income reporting confusion - how do they calculate partial benefits when earning over $450?

The EDD uses a specific formula for partial benefits. They don't just cut you off completely when you exceed your WBA. They subtract 75% of your earnings from your weekly benefit amount. So if your WBA is $450 and you earned $480, they would deduct $360 (75% of $480) from your $450, leaving you with $90 for that week. As long as you earn less than 1.33 times your WBA, you'll still get something. Just keep certifying accurately and they'll do the calculations.

they just take away what you make dollar for doller thats what happned to ME

Went thru this exact thing last month! As long as u make less than 1.33x ur weekly benefit amount, you'll still get something. So for u with $450 WBA, you could earn up to $598.50 and still get partial benefits. The formula is kinda weird tho - they deduct 75% of what u earn from ur benefit amount. Keep certifying!

The formula is actually designed to incentivize part-time work. Here's the exact calculation: 1. Take your gross earnings (before taxes) 2. Multiply by 0.75 (this gives you 75% of your earnings) 3. Subtract that amount from your Weekly Benefit Amount 4. The remainder is what you'll receive for that week This means you can earn up to 1.33 times your WBA before your benefits reduce to $0. For your $450 WBA, you could earn up to $598.50 and still get something. This encourages people to take part-time work without losing all their benefits immediately. Keep in mind that weeks where you receive ANY unemployment benefits still count toward your maximum benefit amount and benefit year.

I struggled with this same issue for MONTHS last year and almost gave up calling EDD because it was impossible to get through with their constantly busy lines! I finally used a service called Claimyr (claimyr.com) that got me connected to an EDD representative within 20 minutes. They have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km The rep explained that the 75% formula is meant to encourage work - so you always keep 25% of what you earn plus whatever's left of your WBA after deductions. Definitely worth calling to have them explain your specific situation.

The EDD's formula is designed to SCREW workers!!! I earned $510 one week (just $60 over my benefit amount) and they gave me practically nothing! The whole system is rigged against people trying to get back on their feet. I bet half the people posting here are EDD employees trying to make the system sound fair when it's NOT.

A lot of the comments here are correct about the 75% formula, but I want to add something important: make sure you're reporting your GROSS earnings (before taxes) when you certify. EDD calculates based on gross, not net. I made this mistake once and had to deal with an overpayment notice later. Also, report earnings for the week you WORKED, not when you got paid - that trips up a lot of people.

Just to add to the excellent information others have provided: even when you earn over your WBA but still receive partial benefits, you'll remain eligible for your claim and your benefits won't be interrupted. You'll also maintain your medical coverage if you're on Covered California with premium assistance. The formula (WBA - (earnings × 0.75) = partial benefit) was specifically designed to encourage part-time and temporary work while you search for full-time employment.

I went through this exact same confusion when I first started working part-time on unemployment! The math seemed backwards to me at first. What really helped me understand it was thinking about it this way: EDD wants you to always be better off financially when you work, so they make sure you keep at least 25% of whatever you earn PLUS any leftover benefit amount. So in your case with $480 earnings, you keep $120 (25% of $480) plus the $90 leftover benefit = $570 total that week instead of just $450 if you hadn't worked at all. It's actually a pretty fair system once you understand the logic behind it. Just make sure you report everything accurately and on time!

This thread has been incredibly helpful! I'm in a similar situation and was panicking that I'd lose all my benefits. One thing I want to add for anyone else reading - if you're doing gig work or freelance like Uber, DoorDash, or freelance writing, make sure you keep detailed records of your hours and earnings. EDD sometimes audits these and you'll need proof of when you worked and how much you made. I use a simple spreadsheet to track everything by week. Also, don't forget that if you have a week where you don't work at all, you still need to certify and report $0 earnings to get your full WBA. The system is actually pretty reasonable once you understand how it works!