Can I collect unemployment while earning referral commissions from my old employer?

You absolutely need to report ALL income during any week you claim benefits, regardless of the amount. Washington state uses what's called the "earnings deduction" formula. If you earn less than 75% of your weekly benefit amount, your UI payment will be reduced but not eliminated. If you earn more than your weekly benefit amount, you won't receive UI for that week, but you won't lose your claim - you just don't get a payment that specific week. Make sure to accurately report the commission when you actually RECEIVE it, not when you make the referral. This is really important for avoiding overpayment issues later.

be careful!! i did something like this last yr with consulting work while on UI and ESD flagged my account for review and my payments stopped for like 6 weeks while they investigated!!! make sure u document EVERYTHING and keep track of exactly when u got paid vs when u did the work!!

This question comes up a lot! The basic rule is that if you earn more than your weekly benefit amount (WBA) in any week, you won't receive benefits for that week. But your claim stays open and you can claim again the following week if your earnings drop. What people often miss: You must actively look for work and complete your 3 job search activities each week EVEN during weeks when you earn too much from commissions. If you don't, your claim could be disqualified completely. Also, since these are commissions from your former employer, make sure they don't try to classify you as an "independent contractor" while you're still essentially doing similar work to what you did as an employee. That could create bigger issues with your claim.

Yes, you absolutely do need to complete job searches even in weeks you won't receive benefits because of high earnings. It's how ESD ensures you're still looking for permanent full-time work and not just working part-time or on commission indefinitely while collecting benefits in lower-earning weeks.

I had a similar situation when I got laid off from my sales job. Basically, you have to report any income in the week you RECEIVE it (not when you earn it). When you do your weekly claim, there's a question that asks if you received any income - say yes and report the full gross amount before taxes. ESD will reduce your benefit by 75 cents for every dollar you earn over $5 up to 75% of your weekly benefit amount. Once you hit 75%, they start deducting dollar for dollar. If you're struggling to get through to ESD to ask specific questions about your situation, check out Claimyr.com - they helped me get through to an actual person after I couldn't get past the busy signals for two weeks. They have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3

Your best bet is to contact ESD directly and ask about your specific situation. The rules can be confusing and EVERY CASE IS DIFFERENT!!!

Make sure you understand the difference between "remuneration" and "gross earnings" - ESD defines them differently! Commissions definitely count as earnings that need to be reported. I learned this the hard way and had to appeal a disqualification. Also, keep in mind that if you're doing anything that could be considered "self-employment" rather than just collecting passive referral fees, there are additional reporting requirements about hours worked, not just money earned. The ESD handbook explains this on page 18-19, but it's a bit confusing to follow.

i wouldn't even bother reporting small commissions tbh they'll never know lol

One other thing - if you're receiving these referral fees via 1099, remember you'll owe self-employment tax on them. Might be worth setting aside about 30% of what you receive for taxes (15.3% self-employment tax plus income tax). Just something to consider when calculating whether the larger commissions are worth forgoing your UI benefit for that week.

Just wanted to add - make sure you're crystal clear on the timing of when you report these commissions. Report them in the week you actually RECEIVE the payment, not when you make the referral or when the deal closes. I made this mistake early on and it created a mess with my claim timing. Also, if your former employer is cutting you checks or direct deposits for these referrals, keep copies of everything - pay stubs, deposit records, emails confirming the referral arrangements. ESD may ask for documentation during their periodic claim reviews, and having everything organized will save you major headaches if they ever audit your claim.