Can I do gig work while on Washington ESD unemployment benefits?

Thanks! Do I report it the week I worked or the week I got paid? Sometimes the gig apps take a few days to pay out.

Report it for the week you actually worked, not when you got paid. So if you drove for DoorDash on Tuesday, report those earnings on that week's claim even if the money doesn't hit your account until Friday.

Oh no! How did they find out about the unreported income?

They match up tax records at the end of the year. All those gig companies send 1099s to the IRS so Washington ESD sees everything eventually.

This is why I've been scared to do any side work. The whole system seems designed to trip you up.

So if I make $100 doing deliveries, they'll reduce my weekly benefit by $75?

Yeah roughly. The exact formula is a bit more complicated but that's the basic idea. You get to keep some of what you earn plus still get partial benefits.

I wish Washington ESD would explain this better on their website. I had to call them three times to understand how the earnings deduction works.

That sounds helpful! I've been trying to call Washington ESD for weeks about different questions and can never get through.

Is this some kind of paid service? Seems weird that you'd need to pay someone just to talk to Washington ESD.

It's worth it when you actually need to speak to someone. I was stuck in adjudication for over a month and this was the only way I could get answers about my claim status.

No it all goes in the same earnings section. Washington ESD doesn't distinguish between W-2 and 1099 income when you're reporting on your weekly claims.

Okay good, I was worried there might be separate forms or something complicated like that.

That makes sense. I'm not planning to work that much anyway, just want to pick up maybe $200-300 a week to help with bills.

Yeah that should be fine. You'll still get partial benefits and come out ahead overall.

Just make sure you're still looking for full-time work and meeting the job search requirements. Washington ESD expects you to be actively seeking permanent employment.

I get the frustration but the system is designed to partially replace your income, not supplement it indefinitely. The earnings deduction prevents people from double-dipping.

Still seems backwards to me. People should be encouraged to work, not have their benefits cut for trying to be responsible.

At least Washington state lets you keep some of your earnings. Some states have much harsher rules about working while on UI.

Doesn't matter what type of work it is. All earned income gets reported the same way on your weekly claims.

Cool, just wanted to make sure there weren't weird rules about working outside your field or something.

That's a good idea about the spreadsheet. Do you track miles and expenses too for tax purposes?

Oh yeah definitely. Gig work means you're self-employed so you'll need to handle your own taxes. The spreadsheet helps with that too.

Ugh I didn't even think about the tax complications. This is getting more complex than I thought.

Yes, you report ALL earnings no matter how small. Even $1 needs to be reported on your weekly claim.

Wow okay, good to know. I was thinking maybe small amounts didn't matter.

Trust me, report everything. It's not worth the risk of getting caught for unreported income later.

You report the gross amount - the full $100 in your example. Business expenses are handled separately for tax purposes, not when reporting to Washington ESD.

That seems unfair since expenses reduce your actual income, but I guess I understand the reasoning.

How long did it take with claimyr to reach someone?

Like 20 minutes total. Way better than spending hours redialing the regular number and getting nowhere.

Nice! About how much did they reduce your benefits by?

my usual benefit is $420 and they gave me $285 that week so i think they took off like $135 or something close to that

Good point. I'm only planning to work evenings and weekends so it shouldn't affect my job search availability during normal business hours.

That should be fine then. Just don't let the gig work become so time-consuming that you can't accept a regular job offer.

Exactly. Washington ESD expects you to prioritize finding permanent employment over temporary gig work.

You'd stop filing for unemployment once you start the full-time job. You can keep doing gig work on the side if you want, but that's between you and your new employer.

Makes sense. I just want to make sure I understand all the transitions before I start any side work.

Nope, all 1099 contractor work is treated the same way. Whether it's Uber, TaskRabbit, or freelance graphic design, you report the earnings the same way.

Good to know. I was thinking about doing some freelance work in my field but wasn't sure if that would be viewed differently.

Same here! I feel much more confident about picking up some delivery work now that I understand the rules.

Just remember - when in doubt, report it. It's always better to over-report than under-report when it comes to earnings.

You can contact Washington ESD to correct a mistake, but it's much better to get it right the first time. They may require you to pay back overpaid benefits.

Yeah I figured it was better to ask now than find out the hard way later.

If you need to talk to Washington ESD about corrections or have other questions, that claimyr service I mentioned earlier is still the easiest way to actually reach an agent without waiting on hold for hours.

Good luck! I think I'm going to start this weekend too.

Just remember to keep good records and report everything honestly. You'll do fine!

And don't forget about the tax implications at the end of the year. You'll need to file Schedule C for the gig income.

Wait, I'm confused about this. I thought earlier in the thread someone said to report gross earnings, not net? Are you saying we should report what actually hits our bank account after the app takes their cut?

That's a really good distinction to clarify! I think there might be some confusion in this thread about gross vs net. From what I understand, you report what you actually earned from the work, which would be after platform fees but before your own business expenses like gas. So if you made $50 in deliveries but DoorDash kept $5, you'd report $45. But if you spent $10 on gas, you still report the $45, not $35. The gas expense is handled separately for tax purposes.