EDD income reporting confusion - how do they calculate partial benefits when earning over $450?
Hi everyone, I'm working part-time while on unemployment and totally confused about how EDD calculates my weekly benefit amount when I report earnings. My WBA is $450, but last week I made $480 doing some freelance work. I reported everything honestly but now I'm wondering if I'll get anything at all since I went over my benefit amount? Does EDD use some kind of formula or percentage for partial benefits? I tried reading their website but got lost in all the technical jargon. Anyone know exactly how they calculate this stuff? Will I still get something or did I work myself out of benefits entirely for that week?
18 comments
Jackie Martinez
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.
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Monique Byrd
•Thank you so much! That makes way more sense than what I was thinking. So I'll still get $90 for that week even though I earned more than my WBA? That's a relief. I was worried I'd completely worked myself out of benefits.
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Lia Quinn
they just take away what you make dollar for doller thats what happned to ME
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Haley Stokes
•That's not actually correct. EDD doesn't do dollar-for-dollar deductions anymore. They use the formula where they deduct 75% of your earnings. I went through this whole process last year when I was working part-time at Target while on unemployment. The EDD system is frustrating but at least they don't punish you completely for working part-time.
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Asher Levin
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!
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Monique Byrd
•Thanks for the info! This helps a lot. I was getting so confused trying to figure it out on my own. Do you know if I still get the $450 counted as income for qualifying for other benefits even if I only receive $90?
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Serene Snow
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.
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Monique Byrd
•Wow, thank you for breaking it down step by step! That's really helpful. I was worried I'd be penalized for working, but it sounds like the system actually encourages picking up some work. I'll definitely keep tracking my hours carefully.
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Issac Nightingale
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.
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Asher Levin
•Does that service really work?? I've been trying to call EDD for 2 weeks about a separate issue and can never get through!
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Issac Nightingale
•Yeah it actually does! I was super skeptical at first but I was desperate after trying to call for days. The rep I talked to was able to explain all my partial benefit calculations and fixed some certification issues I had too.
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Romeo Barrett
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.
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Serene Snow
•The formula actually would give you $67.50 for that week if your WBA was $450 and you earned $510 (450 - (510 x 0.75) = $67.50). That's not 'practically nothing' - it's extra money on top of what you earned. The system is specifically designed to make sure you always come out ahead by working part-time versus not working at all.
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Romeo Barrett
•$67 is practically nothing when you consider the taxes taken out and how much time I spent working that week! And they never explained any of this clearly on their website, had to figure it out after the fact!
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Haley Stokes
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.
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Monique Byrd
•Oh that's really important info - I didn't realize I needed to report the week I worked rather than when I got paid! For freelance work sometimes the payment comes weeks later. Thank you for this tip!
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Jackie Martinez
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.
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Monique Byrd
•That's so helpful to know about maintaining medical coverage! I'm on Covered California and was worried about losing that if my benefits got reduced. This whole thread has been incredibly helpful - much better than the EDD website explanation.
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