Settlement check with W2 and 1099 - report on EDD certification?

u dont report it. i got similar stuf from my old job at safeway. its not income from work u did this week so dont put it on certification

The previous commenter is incorrect. Settlement payments are more complicated than that. The W2 portion represents wages and MUST be reported as income for the week you received it. The 1099 portion is typically for interest/penalties and doesn't count as wages, so that part doesn't need to be reported for UI purposes. This is directly from the EDD handbook: "You must report all income received, including back pay, bonuses, settlements, and severance pay." Failure to report could result in an overpayment determination and possibly penalties if they decide it was intentional.

The correct answer is that you need to report the W2 portion only, as that represents wages (even if earned in the past). The EDD system is specifically looking for unreported wages that could affect your weekly benefit amount. Here's what to do: 1. Report the W2 portion on your certification in the week you received it 2. In the section asking which employer paid these wages, put the name of the company from the settlement 3. When it asks if you still work for this employer, select "No" 4. There should be a section for comments/additional information - explain briefly that this was a settlement payment for past work Keep copies of everything - the settlement letter, the check, and both tax forms. If your payment gets held up for review (which it might), you'll need these documents.

my brother got a lawsuit check last yr for $5k from his old construction job and he didnt report it and nothing happend. its not like edd talks to the irs anyway lol

Ran into this EXACT issue last year with a settlement from my job at Target. Let me tell you how it played out - I reported the W2 portion on my certification, and my payment immediately went to pending. Was stuck like that for almost 3 weeks! Tried calling EDD over and over but couldn't get through to anyone. Finally discovered Claimyr (claimyr.com) - it's a service that helps you get through to an actual EDD rep instead of getting the "too many callers" message. They have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km Got through to a rep that same day who fixed my account. They confirmed I was right to report the W2 portion, but they had to manually review the claim because the system flagged it as potential unreported work.

I'm going through the EXACT same thing right now!!!! Got a settlement check from my old retail job for $3,450 with split W2/1099 forms. I called EDD for 3 days straight and finally got through yesterday. The rep told me: 1) YES report the W2 portion only 2) NO don't report the 1099 part 3) YES put the old employer's name 4) YES write a note explaining it's a settlement BUT!!!! Then she also told me I should expect my payment to go to pending because these situations trigger a manual review. She said it usually takes 7-10 days for them to sort it out. She also said if I hadn't reported it and they caught it later, it would be much worse - potential disqualification for misreporting plus having to pay back benefits.

Is anyone else TIRED of how complicated EDD makes everything?!?! Why can't they just have CLEAR guidelines about what counts as income? I swear they deliberately make it confusing so they can catch people making honest mistakes and then hit them with overpayments and penalties. I've been on UI twice in the past 3 years and both times had issues with their stupid system. It's like they're looking for reasons to deny benefits we EARNED.

Just to follow up on this thread with accurate information: 1. Settlement payments for wages (W2 portion) must be reported to EDD in the week received 2. Non-wage settlements (1099 portion) typically don't need to be reported 3. It's normal for your payment to go to pending when you report this kind of income 4. Keep all documentation for at least 3 years (settlement letter, payment stub, tax forms) 5. If your payment gets stuck in pending, you'll need to speak with a representative The most important thing is honest reporting - the temporary delay from reporting correctly is much better than dealing with an overpayment or potential disqualification later.