How do business owners file for unemployment with California EDD?

This is really helpful, thank you. Yes I was definitely paying SDI through payroll this whole time. I didn't even know if that mattered. So I just go to UI Online and file like a normal employee would?

Exactly right about the SDI contributions. That's the gateway. No SDI withheld = no UI benefits. Most sole proprietors who pay themselves as contractors (1099) don't qualify for this reason.

wait so if you own the business but paid yourself W2 you can get unemployment?? i had no idea that was even possible

Did they ask for a lot of documentation about the closure? I have the LLC dissolution papers from the state but I'm wondering what else they might need.

They asked me to confirm the date I stopped operating and why. I mentioned I had the dissolution paperwork and they noted it but didn't actually request it upfront. They may ask for it later if adjudication gets complicated.

this matches my experience too, the phone interview is pretty standard for any self-employed situation, just be straightforward with them

How long does adjudication usually take in these situations? I have bills coming up and I'm kind of stressing.

Honestly it varies a lot. Could be 2 weeks, could be 6+ weeks. The frustrating truth is there's no way to know in advance. If it drags past 4-5 weeks you should try to contact EDD directly to check status.

Six weeks is wildly optimistic lol. Mine took 11 weeks and they never even explained why it took so long

Oh interesting, I'll bookmark that for if my claim gets stuck. Did they help you with an adjudication situation specifically?

Yeah exactly that situation. The agent I reached was able to tell me what was holding up my claim and what documents they needed. Would have waited another month otherwise probably.

gonna save this link. been trying to reach edd for 3 days straight and cant get anyone

does it actually work or is it one of those scammy things

This is good to know. I'm definitely not planning to restart - the market I was in basically collapsed and I'm looking at completely different work. Is there a way to communicate that clearly to EDD during the interview?

Yes - during the eligibility interview just be straightforward that you dissolved the entity and are seeking employment in a different field. The interviewer isn't trying to catch you in anything, they just need to verify the basic facts.

the 'no continuing interest' thing caught me off guard. i had a second smaller LLC i forgot about and that triggered a whole extra review

Oh wow good to know. I only had the one business so hopefully that won't be an issue for me.

I paid myself about $52,000 a year in W-2 wages so that should be well above the threshold right?

Yes, comfortably so. Your weekly benefit amount would be calculated based on those wages and would likely be near the maximum weekly benefit amount that EDD pays.

what is the max weekly benefit right now? I keep seeing different numbers

What is CalJOBS exactly? Is that separate from the EDD claim process?

CalJOBS is California's job search database - you create a profile and it's tied to your unemployment claim to show you're actively looking for work. It's required for most claimants. You can find it at caljobs.ca.gov. It's annoying to set up but doesn't take more than 30-45 minutes.

Also make sure you understand the job search activity requirements. In California you need to complete 3 job search activities per week while claiming benefits. Keep a log because EDD can audit this.

Hope yours resolves soon. Did they give you any indication of what they're reviewing?

nothing. literally nothing. the status just says adjudication in progress. no letters, no calls, nothing

This is unfortunately very common. The lack of communication from EDD during adjudication is a chronic complaint. You can try calling to get a status update but getting through is its own challenge.

wait this might be exactly what I need. going to check it out tonight

second this, used it when my claim was stuck too and it made a real difference to actually talk to a person

does it work for mobile or do you have to be on a computer

What if I do some odd jobs while looking for work? Like helping a friend move his equipment or something small like that?

Even informal income should technically be reported. EDD asks if you 'worked or earned any wages' during the week. Small amounts may reduce your benefit by a small amount but it's much better than having an unreported income issue later.

this tripped me up. did a small consulting thing for an old client without thinking, didn't report it, and ended up with an overpayment notice 8 months later. was not fun.

It definitely varies by situation. The more clearly documented your case is (dissolved LLC, W-2 wage history, no continuing business activity) the smoother it tends to go. Your cousin probably had a clean-cut situation.

Also varies by how busy EDD is processing claims at any given time. When they have backlogs everything gets harder.

makes sense. i just wanted OP to know its not impossible lol

Oh this is super important, thank you! So I should be certifying every week starting from when I filed the initial claim?

Yes exactly. The UI Online system should prompt you when your certification is available each week. Do not skip weeks.

WISH someone had told me this earlier. I missed two weeks because I thought I had to wait. Lost those payments.

This is one of the most common mistakes claimants make. Adjudication doesn't pause your certification requirement.

Yes absolutely. California doesn't require you to search only in your prior occupation. You're expected to seek suitable work, but as you gain time on unemployment the definition of 'suitable' broadens. An office job after running a landscaping business is totally reasonable.

ok good to know. asking for a friend who is in similar situation lol

The job search just needs to be genuine. Actually applying, actually being available for interviews, etc. The industry switch itself isn't a problem at all.

Super helpful list, I'm going to put this all together in a folder. Thank you.

Also write down the name of the interviewer and the date/time of the call just in case you need to reference it later.

4 months... that's terrifying. How did you survive financially during that time?

honestly barely. had to borrow from family. EDD did pay all the back weeks when it finally resolved which helped but the stress during that time was extreme

This is unfortunately real. The backlog problem is structural. Once you're in adjudication the outcome is often fine but the timeline is completely unpredictable.

this is why i always tell people to have at least 3 months savings before doing anything entrepreneurial. not always possible i know but if you can

The weekly benefit amount is calculated purely from your W-2 wages in the base period, not from your ownership status. So if your wages were high enough you'd get the same maximum benefit as any other W-2 employee with the same wage history. Ownership doesn't reduce the benefit amount.

oh interesting ok. so it all comes down to whether you had real payroll

Exactly. The SDI contribution on those wages is what creates the eligibility. No SDI = no UI. W-2 wages with proper withholding = full eligibility calculation.

This is really encouraging, thank you for sharing. Did they contact you for the interview or did you have to initiate that?

they contacted me. got a letter first then a call scheduled about 2 weeks after the letter. total process from initial filing to approval was about 7 weeks like i said

Good outcome - the system works when it works, it's just the uncertainty during the process that's so stressful

Oh that's helpful. I've been updating my resume and going through online certifications so maybe some of that counts.

certifications might be borderline - check the specific list on EDD's website. resume updating and actual employer contacts definitely count though

EDD has a document called 'What Counts as a Job Search Activity' in their resources section. Worth downloading and keeping so you know exactly what to log.

I used it too after seeing it mentioned earlier in this thread - actually worked. Got through and found out my adjudication needed me to submit a document I hadn't even been notified about. Submitted it same day and got approved within a week after that.

Glad it's working for people. I'm going to bookmark this for when I inevitably get stuck. Thanks everyone in this thread - you've all been incredibly helpful. I feel so much better about filing now.

wish this existed when i was going through my 4 month nightmare lol

ok I'm gonna try it I've been trying to reach edd for like 2 weeks on a different issue