EDD reporting confusion: Do sick leave hours count towards UI gross wages calculation?
I'm filling out my UI application for the first time since 2021 and I'm stuck on the 'Total Gross Wages' section. The form says to report 'All wages earned, before taxes and deductions, while working for this employer in the past 18 months.' Here's my question - does sick leave pay count as 'wages earned'? For example, if I worked 38 regular hours and took 2 hours of paid sick leave in a week, should I calculate my gross wages based on 38 hours or the full 40? My gut says include everything on my W-2, but I don't want to mess up my claim. Anyone know the right answer?
31 comments


Nathaniel Mikhaylov
Yes, you should include ALL compensation on your UI application, including sick pay. The Total Gross Wages means everything that appeared on your W-2 from that employer during the past 18 months. So calculate based on the full 40 hours in your example (38 regular + 2 sick). EDD considers all forms of compensation when determining your benefit amount - regular wages, overtime, sick pay, vacation pay, holiday pay, bonuses, commissions, etc.
0 coins
Melody Miles
•Thank you! That's super helpful. Does this apply to all types of paid leave then? I also had some vacation time and a few holidays during that period.
0 coins
Eva St. Cyr
i did my claim last month and put everything that was on my w2 and it worked out fine 👍 dont overthink it
0 coins
Melody Miles
•Thanks for the reassurance! Sometimes I get too caught up in the details.
0 coins
Kristian Bishop
That's NOT entirely correct. Sick leave is handled differently depending on whether it was paid out upon separation or used during employment. If you USED sick leave during employment (your 2 hour example), then YES include it in your gross wages. If you were PAID OUT unused sick leave when you left the job, that's considered a termination payment and should NOT be included in your UI calculation. The EDD website explains this but it's buried in their documentation.
0 coins
Nathaniel Mikhaylov
•You're right about the termination payout distinction - good catch. But in the OP's example of sick leave used during regular employment, it definitely counts as wages for UI purposes.
0 coins
Melody Miles
•This is a really important distinction, thank you! All my sick leave was used during employment, not paid out at the end, so sounds like I should include it all.
0 coins
Kaitlyn Otto
I included EVERYTHING on my application and then the EDD sent me a notice showing what quarters they were using to calculate my benefit amount. The notice showed different numbers than what I submitted but they gave me a decent weekly benefit amount. So I wouldn't stress too much about being 100% perfect.
0 coins
Axel Far
When I filed last year I got so frustrated with the EDD phone lines - kept getting the "we're experiencing high call volume" message for DAYS when I had questions about my wages. Finally found this service called Claimyr (claimyr.com) that got me through to an EDD rep in about 20 minutes when I'd been trying for a week on my own. They have a demo video if you want to see how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km. It was such a relief to actually talk to someone who could answer my specific questions about what to include.
0 coins
Melody Miles
•Thanks for the tip! I'll keep this in mind if I run into more roadblocks. I've already tried calling twice today with no luck.
0 coins
Jasmine Hernandez
•I've used Claimyr too when my claim had issues. Saved me days of frustration trying to get through the phone lines.
0 coins
Luis Johnson
BEWARE: I had a friend who DIDNT include his sick pay and vacation pay and the EDD flagged his claim for "income reporting fraud" and he had to go through a whole phone interview!!! Its not worth the risk just include ALL THE MONEY they paid you!!!
0 coins
Melody Miles
•Yikes! Definitely don't want to trigger any fraud flags. Thanks for the warning.
0 coins
Jasmine Hernandez
To directly answer your question: For UI reporting purposes, you should report wages based on 40 hours in your example (38 worked + 2 sick leave). But here's something important to understand - EDD will verify your wages with employer records anyway. They'll send you a "Notice of Unemployment Insurance Award" (DE 429Z) showing the wages they have on record for your base period. If there's a discrepancy, you can request a wage investigation. So while accuracy is important, don't stress too much about small differences. The system has built-in verification processes.
0 coins
Melody Miles
•This is really helpful context, thank you! I'll do my best to be accurate but it's good to know there's a verification process if I make a mistake.
0 coins
Eva St. Cyr
anyone know how long til the first payment? i keep hearing different things
0 coins
Jasmine Hernandez
•That's a separate topic, but generally if you have a clean claim with no issues, you should get your first payment within 7-10 days after your first certification. However, if there are any flags on your account or identity verification issues, it can take several weeks.
0 coins
Eva St. Cyr
•thx mine took 3 weeks last time hope its faster now
0 coins
Kristian Bishop
Here's the technical explanation: The EDD uses a specific definition of "wages" from the California Unemployment Insurance Code (CUIC) Section 926-940. This definition includes ALL compensation for personal services, whether paid as salary, hourly pay, piece work, commissions, sick pay used during employment, etc. The only exceptions are certain specified payments like termination payouts of unused leave, certain pension distributions, and worker's comp. So for your specific example: Yes, include the 2 hours of sick leave with your 38 regular hours because it was USED during employment, not paid out upon termination.
0 coins
Melody Miles
•Thank you for providing the specific legal reference! That makes it crystal clear. I appreciate the detailed explanation.
0 coins
StarStrider
Just wanted to add my experience - I filed my UI claim a few months ago and was also confused about what to include. I ended up calling the EDD helpline (after many attempts) and the rep specifically told me to include ALL forms of paid leave that I actually used during employment - sick leave, vacation days, personal days, etc. She said the key distinction is whether you USED the leave during your employment period or if it was PAID OUT as a lump sum when you left. Used during employment = include it. Paid out at termination = don't include it. Hope this helps clarify things!
0 coins
Elijah O'Reilly
•This is exactly the clarification I needed! Thank you for sharing what the EDD rep told you directly. The distinction between "used during employment" vs "paid out at termination" seems to be the key point everyone keeps mentioning. I feel much more confident now about including all my sick leave since it was all used during my regular employment period.
0 coins
Yuki Tanaka
I went through this exact same confusion when I filed my claim earlier this year! After reading through all the helpful responses here, I can confirm what others have said - definitely include ALL compensation that shows up on your W-2, including any sick leave you actually used during employment. I was overthinking it too, but the EDD really does want to see the complete picture of your earnings. The key takeaway I'm getting from this thread is the distinction between sick leave USED during employment (include it) versus unused sick leave PAID OUT when you quit/were terminated (don't include that). Since your example is about sick leave used during regular work weeks, you're good to go with including those 2 hours along with your 38 regular hours. Better to be comprehensive than to accidentally trigger any red flags!
0 coins
Anastasia Kozlov
•Thanks for summarizing everything so clearly! As someone who's also new to filing UI, this whole thread has been incredibly helpful. I was getting overwhelmed by all the different advice online, but seeing everyone's actual experiences and the consistent message about including everything on your W-2 (except termination payouts) really puts my mind at ease. I appreciate how supportive this community is - definitely makes navigating the EDD process less stressful when you have real people sharing their knowledge!
0 coins
Lena Kowalski
I just went through this exact same process last month and can confirm what everyone is saying - include ALL paid time that shows up on your paystubs and W-2. The EDD really does verify everything against employer records anyway, so it's better to be thorough upfront. One thing that helped me was keeping all my paystubs from the past 18 months organized by employer - made it much easier to calculate the totals accurately. Also, don't forget about any holiday pay or overtime during that period. The whole process felt overwhelming at first, but once you get the hang of what they're looking for (basically everything you were actually paid), it becomes much more straightforward.
0 coins
Dmitri Volkov
•This is such great advice about keeping paystubs organized! I wish I had thought of that earlier - I've been scrambling to gather all my paperwork from different employers over the past 18 months. You're absolutely right that it's better to be thorough upfront rather than risk having issues later. I'm feeling much more confident about my application now after reading everyone's experiences. It's really reassuring to know that so many people have successfully gone through this process!
0 coins
Madison King
This is such a helpful thread! I'm also filing for UI for the first time and was confused about the same thing. Based on everyone's responses, it sounds like the rule is pretty clear: include ALL compensation from your W-2, including any sick leave, vacation pay, or holiday pay that you actually USED during your employment period. The only exception is if you were paid out unused leave as a lump sum when you left your job - that doesn't count as wages for UI purposes. Thanks to everyone who shared their experiences, especially those who provided the legal references and talked to EDD reps directly. It really helps to hear from people who've actually been through this process!
0 coins
Vera Visnjic
•I'm so glad I found this thread! I'm in exactly the same boat - first time filing and completely overwhelmed by all the forms and requirements. Reading through everyone's experiences has been incredibly reassuring. It's amazing how something that seemed so complicated (what counts as "wages") actually has a pretty straightforward answer once you understand the basic rule: if it's on your W-2 and you actually used it during employment, include it. The distinction between used vs. paid out at termination makes perfect sense now that multiple people have explained it. Thanks to everyone for being so generous with sharing their knowledge - this community is such a lifesaver for navigating the EDD maze!
0 coins
Amina Diop
I'm also filing my first UI claim and had this exact same question! Reading through all these responses has been incredibly helpful. It sounds like the consensus is clear: include ALL compensation that appears on your W-2, including sick leave that you actually used during employment (like your 2-hour example). The key distinction everyone keeps mentioning is "used during employment" vs "paid out at termination" - since you used the sick leave during regular work periods, definitely include it. I was also overthinking this, but it seems like the EDD really does want the complete picture of your earnings. Thanks to everyone who shared their experiences and legal references - this thread should be bookmarked for anyone filing their first claim!
0 coins
Omar Zaki
•I'm in the same exact situation as you and the original poster! First time filing and completely confused about what to include. This thread has been such a lifesaver - I've been reading through all the responses and taking notes. The "used during employment vs paid out at termination" rule that everyone keeps mentioning finally makes it click for me. I was worried I'd mess something up on my application, but now I feel confident about including all my sick leave and vacation time that I actually used during work. It's so reassuring to see how many people have successfully navigated this process and are willing to share their knowledge. Thank you all for making this less intimidating!
0 coins
Rajiv Kumar
I'm also filing for the first time and had this exact confusion! After reading through everyone's responses, I feel so much more confident now. The clear rule seems to be: include ALL compensation from your W-2, including any sick leave, vacation, or holiday pay that you actually USED during employment. The key distinction that keeps coming up is "used during employment" vs "paid out at termination" - since your sick leave example was used during regular work weeks, definitely include those 2 hours with your 38 regular hours. I was also overthinking this whole process, but this thread has been incredibly helpful. It's amazing how supportive this community is - makes the whole EDD process feel much less overwhelming when you have real people sharing their actual experiences!
0 coins