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One more tip - if you're doing regular 1099 work, consider setting up a simple spreadsheet to track your hours and earnings each week. Makes the weekly claim filing much easier.
I use a simple notes app on my phone to track daily hours and then transfer to my weekly claim. Whatever system you use, just be consistent.
This whole thread has been incredibly helpful! As someone who's been hesitant to take on any freelance work while on unemployment, I now feel like I have a much better understanding of how to handle the reporting properly. The key takeaways seem to be: report ALL income in the week you do the work (not when paid), keep detailed records, and understand the partial benefit calculation. Thanks everyone for sharing your experiences!
Just to add another perspective - I've been doing freelance graphic design while on unemployment and one thing that really helped me was calling Washington ESD during off-peak hours (like Tuesday mornings around 8 AM). I was able to get through and confirm exactly how to report project-based 1099 work where the hours aren't as clear-cut as traditional employment. The agent told me to estimate hours based on industry standards for the type of work I'm doing. Also, make sure you understand that if you have a really good week with 1099 income, it might make sense to spread the work across multiple weeks if possible to maximize your combined unemployment + freelance income. The partial benefit system really does help if you plan it right.
Do they deduct 100% of ur freelance earnings from ur benefits? The whole system is so unfair to freelancers!!
They don't deduct 100% of your earnings. ESD has an earnings deduction chart. The first $5 of earnings has no impact, and after that they deduct approximately 75% of your earnings from your benefit. So if you earn $100 in a week, roughly $71.25 would be deducted from your benefit payment. You can find the exact calculation on the ESD website under "Earnings Deduction Chart.
Just wanted to add that you should also keep copies of all your invoices and contracts for these freelance projects. ESD may ask for documentation during their periodic reviews, and having everything organized will save you a lot of headaches. I learned this the hard way when they requested records going back 6 months and I had to scramble to find everything. Also, if you're using any business expenses (software, equipment, etc.) for your freelance work, keep those receipts too - you might be able to deduct them when you file taxes, which could help offset some of the reduced unemployment benefits.
Just wanted to add my voice to say hang in there. I know it's scary but you're not alone in this situation. Keep reaching out for help and don't give up on finding something better.
I went through this exact situation about 18 months ago and it was terrifying at first. After my 26 weeks ended, I had to get creative - I started doing gig work (DoorDash, Instacart) to cover immediate expenses while continuing my job search. It's not steady income but it helped bridge the gap. I also applied for emergency rental assistance through my county and got help with utilities through LIHEAP. The key is to apply for multiple forms of assistance at once rather than waiting for one to be approved or denied. It took me about 2 months after benefits ended to find permanent work, but the combination of gig work and assistance programs kept me afloat. Don't be too proud to ask for help - that's what these safety nets are for.
This isnt at all related to your question but make sure you do your 3 job search activities every single week!!! i missed one week and my claim got messed up and took like a month to fix
I went through this exact situation when I was laid off from my tech job in 2023. The key thing to remember is that ESD cares about when you EARNED the money, not when you received it. Your sick pay was earned during your employment period, so even though the check arrived during your claim week, you don't report it for that week. I was paranoid about getting it wrong too, so I kept detailed records of everything - copies of my final paystub, the layoff notice, and I even took screenshots of my bank deposits with dates. When I filed my first weekly claim, I reported $0 for income since I hadn't worked any hours that week, and I never had any issues with ESD about it. The one thing I'd suggest is keeping that final paystub handy in case ESD ever asks for documentation later. But based on everything I experienced and what the handbook says, you're good to report $0 for that claim week.
This is really helpful! I'm definitely going to keep detailed records like you suggested. It sounds like everyone is pretty much in agreement that I shouldn't report the sick pay since I didn't actually work during that claim week. The documentation tip is smart - I'll make sure to keep copies of everything just in case ESD has questions later. Thanks for sharing your experience!
Fatima Al-Suwaidi
That's awesome that you got it resolved! This whole thread is super helpful for anyone dealing with similar issues. It's crazy how common employer reporting errors seem to be - makes you wonder how many people just give up instead of fighting it. Thanks for updating us on what worked!
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Diego Flores
•Seriously! I'm dealing with a similar wage reporting issue right now and this thread has been a lifesaver. It's ridiculous that we have to become detective investigators just to get the benefits we're entitled to. The fact that employers can mess up their reporting and it becomes OUR problem to fix is so frustrating. But at least now I know there are actual solutions instead of just banging my head against the wall with the phone system!
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Amara Eze
This is exactly why we need better oversight of employer wage reporting! I work in HR and see this kind of mess all the time - companies switch payroll systems, merge with other businesses, or just have undertrained staff who don't understand how to properly categorize employees for state reporting. It shouldn't be the worker's responsibility to fix their employer's mistakes, especially when you're already dealing with the stress of being laid off. For anyone else reading this who might face similar issues: always keep your own records! Save your paystubs, timesheets, and any employment documentation. The state systems rely entirely on what employers report, but employers make mistakes constantly. Having your own paper trail makes the wage investigation process much smoother. Great job persisting through this @NeonNova - 2-3 weeks is actually pretty fast for ESD to resolve wage investigations from what I've seen!
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Omar Hassan
•This is such good advice! I wish someone had told me to keep detailed records when I first started working. I'm definitely going to start saving all my paystubs and timesheets from now on. It's crazy that we have to basically audit our own employers just to make sure we get what we're owed if something happens. Thanks for the HR perspective on this - it really helps to understand why these mistakes happen so often!
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