Need to return overpaid EDD benefits from unreported contract work - how to avoid penalties?

ur in a tough spot. my cousin didnt report some cash jobs last year and EDD hit him with fraud accusations. took him 6 months to sort it out. he had to payback everything plus like 25% extra and got penalty weeks too.not sure if coming clean helps or not but good luck!!

I've helped several people through this process. First, take a deep breath - you're doing the right thing by coming forward. This is what you need to do: 1. Calculate how much you were overpaid. For each week you had earnings, subtract what you should have reported from your weekly benefit amount (WBA). If you earned more than your WBA in a week, you shouldn't have received benefits for that week at all. 2. Contact EDD through your UI Online account. Use the "Ask EDD" feature to explain the situation. Be clear that you want to voluntarily report unreported income and return overpaid benefits. 3. They'll typically send you an official overpayment notice with instructions on how to repay. Don't send money until you get this notice. Yes, there's still a possibility of penalties, but voluntary disclosure usually results in just paying back what you owe without the 30% penalty. The most important thing is to be proactive before they identify it in an audit.

this happened 2 me last year!!! i reported wrong incums on 3 weeks and realised i messed up. i FREAKED OUT!!!! but actually edd was ok about it when i called. they just made me pay back what i shouldnt of got but no extra penalty becuz i told them myself. the lady said its differnt when people come forward vs when they catch u. but took 4EVER to get somone on the phone omg

Anyone else think the whole EDD system is RIGGED to trip people up?? The certification questions are so confusing - like what exactly counts as "looking for work" and what's the threshold for reporting income? I swear they make it complicated on purpose so they can hit people with penalties later. Sorry this happened to you OP but at least you're trying to fix it which is more than most people would do.

If you're having trouble getting through to EDD (which is likely), you might want to try Claimyr. I was in a similar situation where I needed to speak with an EDD rep urgently about an overpayment issue, and after days of calling with no luck, I used their service. They got me connected to an EDD representative in about 20 minutes when I had been trying for days on my own. You can see how it works in their video demo: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km Their website is claimyr.com if you want to check it out. It was worth it to finally get a real person who could help with my specific situation.

To answer your follow-up questions: 1. Yes, continue certifying normally while this is being resolved. Be 100% accurate with any new certifications. 2. They do offer payment plans. Once you receive the official overpayment notice, it will include information about requesting a payment plan. They're generally reasonable about this. Also, make sure you have documentation of your contract work earnings ready - invoices, payment records, dates worked, etc. Being organized with this information will help the process go more smoothly.

One important distinction that hasn't been mentioned yet: EDD classifies overpayments as either "fraud" or "non-fraud" overpayments. Since you're coming forward voluntarily before being caught in an audit or cross-match with tax records, you have a good chance of this being classified as a non-fraud overpayment. Non-fraud overpayments typically don't include the 30% penalty and don't result in penalty weeks. You'll need to pay back the principal amount, but without those additional consequences. When you contact EDD, be very clear that you made an honest mistake in your reporting and that you're voluntarily disclosing the unreported income. Document everything, including the date/time of your call or copy of your written communication. If they later try to classify it as fraud, having documentation of your voluntary disclosure can help in the appeals process.

soooo after u fix this make sure u kno for future that any week u work u have to report even $1 of income!!! and its based on when u DID the work not when u got paid for it. thats what confused me cuz i got paid for my gigs weeks later but ur supposed to report when u did the actual work. its a whole thing lol

I went through something very similar about 8 months ago. Had some consulting work that I didn't report properly and was terrified about the consequences. Here's what actually happened when I came forward: I used the "Ask EDD" feature in my UI Online account and explained everything - the dates I worked, how much I earned, and that I wanted to voluntarily report unreported income. Within about 2 weeks, I got an official overpayment determination notice. The good news: because I self-reported, they classified it as a non-fraud overpayment. I only had to pay back the principal amount (about $1,200 in my case) with no 30% penalty and no penalty weeks. They also offered me a payment plan of $100/month which made it manageable. The process was actually much less scary than I thought it would be. The key is being completely honest and having all your documentation ready. Save copies of everything you send them and any responses you get. You're doing the right thing by coming forward - it really does make a difference in how they handle it.

Just wanted to add my experience from last year - I was in almost the exact same situation with unreported freelance graphic design work (about $3,200 over 6 weeks). I was absolutely terrified about fraud penalties, but here's what happened: I contacted EDD through the Ask EDD feature and was completely upfront about everything. They sent me a questionnaire asking for details about the work dates, payment amounts, and why I didn't report it initially. I provided all my invoices, contracts, and bank statements showing when payments were received. The whole process took about 6 weeks from start to finish. They determined I owed back $1,680 in benefits and classified it as non-fraud since I self-reported. No 30% penalty, no penalty weeks. They set up a payment plan for $150/month which was totally reasonable. The EDD rep I eventually spoke with actually said they appreciate when people come forward because it shows good faith. She told me that voluntary disclosure cases are handled very differently from audit discoveries. My advice: gather ALL your documentation first, be completely transparent in your Ask EDD submission, and don't panic. The anticipation was honestly worse than the actual process. You're making the right choice by coming clean!

I went through this exact situation about 6 months ago with some side work I did while on UI. The panic you're feeling is totally understandable, but you're absolutely doing the right thing by coming forward voluntarily. Here's my step-by-step process that worked: 1. First, I calculated exactly what I owed by going through each certification week where I had unreported income. For weeks where my earnings were less than my WBA, I calculated the reduced benefit I should have received. For weeks where earnings exceeded my WBA, I owed back the full weekly amount. 2. I gathered ALL documentation - contracts, invoices, payment records, bank statements, emails about the work, everything. Having this ready made the whole process smoother. 3. I used the "Ask EDD" feature in my UI Online account and wrote a detailed explanation. I emphasized that I was voluntarily reporting unreported income and wanted to make things right. 4. About 10 days later, they sent me an official overpayment notice for $1,456. Since I self-reported, it was classified as non-fraud - no 30% penalty, no penalty weeks. 5. They offered a payment plan of $125/month, which I accepted and have been paying without any issues. The whole process took about 5 weeks total. The EDD rep told me that voluntary disclosure makes a huge difference in how they handle cases. You should definitely continue certifying accurately while this gets resolved. Don't let the horror stories scare you too much - those are usually cases where EDD discovered the unreported income during audits or cross-matching. Coming forward yourself puts you in a much better position.

I'm in a very similar situation right now - been doing some part-time tutoring while on UI and didn't report about $1,400 in earnings over the past month. Reading all these experiences is giving me so much hope! It sounds like the key is really being proactive and honest about it. One question for those who have been through this - when you calculated what you owed back, did you use gross earnings or net earnings after expenses? I had some costs for materials and transportation for the tutoring sessions, so I'm not sure if I should report the full amount I was paid or subtract my business expenses first. Also, has anyone had success reaching EDD by phone recently, or is the Ask EDD online feature really the best way to start this process? I've been calling for two days straight with no luck getting through. Thanks everyone for sharing your experiences - it's really helping me work up the courage to come forward instead of just hoping they don't catch it!