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Isabel Vega

Will December bonus check affect my EDD benefits? Just started claim

So I just got laid off from my tech support position and will be filing for unemployment this week. One complication - I'm supposed to receive a $3,200 bonus check in December for completing my 2-year contract before the company downsized our department. My supervisor mentioned it would still be paid out despite the layoff since I fulfilled the contract terms. Will this bonus affect my weekly unemployment benefits? Do I need to report it when certifying? Not sure if it counts as "income" since I'm not actually working when I receive it. Really confused about timing too - does it only affect the week I receive it or could it mess up my entire claim? Thanks for any insight!

pretty sure u have to report bonuses. they count as income even if u get it after laid off. i think it only effects the week u get it tho

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Isabel Vega

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Thanks! So would I just report it for that specific certification period? I'm worried they'll think I'm still employed or something when I get this check.

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Marilyn Dixon

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Yes, you absolutely must report the bonus when you certify for that week. It counts as income for the week you receive it, not when you earned it. During certification, you'll answer "Yes" to the question about receiving other income, and select "Bonus" from the dropdown menu. You'll need to report the gross amount (before taxes). This will likely reduce or eliminate your UI payment for ONLY that specific week, but won't affect your claim going forward. Your benefit year and weekly benefit amount remain the same. Just be 100% honest when reporting - EDD can cross-check with employer tax records and hiding income can result in overpayment notices or penalties.

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This happened to me!! I got a severance check after being laid off from retail management. Reported it and my benefit was $0 for that week, but then went back to normal the next certification period. No big deal if you're honest about it.

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TommyKapitz

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The EDD system is SO FRUSTRATING with this stuff!!! I had something similar and they somehow flagged my whole claim for review when I reported a final commission check. Took WEEKS to get it sorted out and I couldn't get through to anyone on the phone!!! Keep calling that stupid 1-800 number but it always says "we're experiencing high call volume" NO MATTER WHAT TIME I CALL!!! The system is BROKEN!!!

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I've had success getting through to EDD using Claimyr (claimyr.com). They have a system that basically waits on hold for you and calls you back when an EDD rep is on the line. Saved me hours of frustration when my claim had issues after reporting some final income. You can see how it works here: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km. Worth it to get a real person who can look at your specific situation with the bonus and tell you exactly how to handle it.

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Payton Black

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wait im confused, do bonuses even count if they were earned before you got laid off? i thought it was just regular wages that count against unemployment

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Marilyn Dixon

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Yes, bonuses absolutely count as income for unemployment purposes, regardless of when they were earned. EDD is concerned with when you RECEIVE the money, not when you earned it. This applies to bonuses, severance, vacation payouts, commissions, etc.

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Harold Oh

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I had almost exactly this situation last year. Got laid off from my marketing coordinator position but received a performance bonus two months later. Here's what I learned: 1. Yes, you MUST report the bonus for the week you physically receive it 2. It will likely reduce or eliminate your benefit for ONLY that week 3. Make sure to report the GROSS amount (before taxes) 4. Have documentation ready in case EDD has questions (bonus policy, email confirmation, etc.) 5. When certifying, answer "Yes" to other income and select "Bonus" type After that week, your benefits should resume normally. If your claim gets flagged for an eligibility interview because of it (mine did), just explain that it was a one-time bonus for work completed before separation. The interviewer cleared it right away.

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Isabel Vega

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Thank you SO much for this detailed explanation! This makes me feel a lot better. I'll make sure to keep all the documentation about the bonus in case they ask questions. Really appreciate you sharing your experience!

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Amun-Ra Azra

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i remember when i was on unemployment in 2018 my employer still had to pay me for my accumulated vacation days after i got laid off. had the same question but my neighbor works for the edd and she told me you gotta report any money that comes from your employer even if your not working there anymore. so yeah your bonus needs to be reported when u certify that week. weird system but thats how it works

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Quick question to add to this thread - what happens if the bonus pushes you over your weekly benefit amount? Do you just get nothing that week or does it somehow affect future weeks too?

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Harold Oh

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If your bonus exceeds your weekly benefit amount, you'll just receive $0 for that specific week only. It doesn't affect future weeks at all. Your claim remains active and you'll continue receiving your regular benefit amount in subsequent weeks when you don't have other income to report.

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Isabel Vega

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Thanks everyone for the helpful advice! I'm going to make sure I report the bonus properly when I receive it in December. Really appreciate all the detailed explanations - seems like it will only affect that one week, which is a relief. I'll still document everything just in case there are questions.

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Jamal Carter

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Just want to add that you should also check if your employer will be withholding taxes from the bonus. Sometimes they withhold at a higher rate for bonuses (like 22% federal), so make sure you report the gross amount to EDD, not the net amount you actually receive. I made that mistake once and had to clarify it later. Also, if the bonus is substantial, you might want to set aside some of it for taxes since it could bump you into a higher tax bracket for the year. Good luck with your claim!

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Great point about the tax withholding! I didn't even think about that. My bonus is $3,200 so they'll probably withhold quite a bit. When I report to EDD, I'll make sure to use the full gross amount before any taxes are taken out. Thanks for the heads up about setting money aside for taxes too - with being unemployed I definitely need to think about that stuff more carefully now.

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Emma Olsen

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@Jamal Carter is absolutely right about the tax withholding! I went through this exact situation when I got a year-end bonus after being laid off from my accounting firm. They withheld federal taxes at 22% plus state taxes, so my $4,000 bonus only came out to about $2,800 take-home. But EDD wants that full $4,000 gross amount reported. Also definitely agree about setting money aside - unemployment income isn t'taxed upfront like regular paychecks, so you ll'owe taxes on both the bonus AND your UI benefits when you file. I learned that the hard way! Keep good records of everything for tax season.

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