Can I take a contract job while on Washington ESD unemployment benefits?
I've been collecting unemployment for about 6 weeks now and just got offered a short-term contract position that would last maybe 2-3 months. The pay would be decent but I'm worried about how this affects my Washington ESD claim. Do I need to report contract work differently than regular employment? Can I go back on unemployment when the contract ends without reapplying? I don't want to mess up my benefits but also can't afford to turn down work opportunities.
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Gabriel Graham
You absolutely need to report ALL income from contract work on your weekly claims. Washington ESD treats contract income the same as regular wages - they'll reduce your weekly benefit based on what you earn. If you make more than your weekly benefit amount plus $5, you won't get any unemployment that week.
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Alicia Stern
•So I report it the same week I do the work, not when I get paid? The contract pays monthly so there might be a delay.
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Gabriel Graham
•Report it for the week you performed the work, regardless of when you get paid. Washington ESD is very strict about this timing.
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Drake
I did contract work last year while on UI and it was such a headache. Had to keep detailed records of hours worked each week because Washington ESD wanted exact breakdowns. Make sure you save everything - contracts, timesheets, payment records.
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Alicia Stern
•Did you have any problems when the contract ended? Could you go back to regular weekly claims?
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Drake
•Yeah, went right back to normal claims. Just had to keep certifying every week even during the contract period.
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Sarah Jones
If you're having trouble getting through to Washington ESD to ask about this, I recently discovered claimyr.com - they help you actually reach an agent by phone. There's a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works. Saved me hours of calling and getting disconnected.
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Sebastian Scott
•How much does that cost though? I'm already broke, can't afford to pay for something like that.
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Sarah Jones
•It's way cheaper than missing out on benefits because you didn't report something correctly. Worth it just for the peace of mind.
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Emily Sanjay
The key thing is you CANNOT just stop filing weekly claims during the contract. You have to keep filing every week and report your earnings. If you stop filing, Washington ESD considers your claim abandoned and you'll have to start over.
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Alicia Stern
•Wait, so even if I'm working full-time on the contract for a few weeks, I still file weekly claims showing $0 benefits?
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Emily Sanjay
•Exactly. You file the claim, report your earnings, and if you earned too much that week you get $0 in benefits. But your claim stays active.
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Jordan Walker
•This is so confusing. Why make it so complicated? Just let people work without all this paperwork.
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Natalie Adams
Be careful about the 1099 vs W2 thing too. If you're getting a 1099 for contract work, Washington ESD might consider you self-employed which has different rules. Make sure the company isn't trying to misclassify you as an independent contractor when you should be an employee.
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Alicia Stern
•It's definitely contract work, they said 1099. Does that change how I report it?
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Natalie Adams
•You still report it the same way on your weekly claim, but keep records of business expenses if any. Those might be deductible from your gross earnings.
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Elijah O'Reilly
I'm in the same boat! Got offered some freelance work but scared to take it because I don't understand all these rules. The Washington ESD website is so confusing about contract work.
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Gabriel Graham
•The basic rule is simple: report all work and earnings. Better to over-report than under-report and get hit with an overpayment later.
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Elijah O'Reilly
•Yeah but what if I mess up the reporting? I've heard horror stories about people owing money back.
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Amara Torres
Just took a 6-week contract job while on unemployment. Here's what I learned: 1) Keep filing weekly claims 2) Report ALL hours worked and gross pay 3) Save every document 4) Don't worry about weekly benefit calculations - Washington ESD does that automatically 5) When contract ends, just go back to normal claims
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Alicia Stern
•This is exactly what I needed to hear! Did you have to do anything special to reactivate your claim after the contract?
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Amara Torres
•Nope, just kept filing weekly like normal. Some weeks I got benefits, some weeks I didn't depending on my contract earnings. Seamless transition back.
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Olivia Van-Cleve
•Wait, so you can work AND collect unemployment at the same time? I thought it was one or the other.
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Mason Kaczka
The partial unemployment thing is actually really helpful for contractors. You can work reduced hours and still get some benefits. Washington ESD has a formula - they subtract your weekly earnings minus $5 from your weekly benefit amount.
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Alicia Stern
•So if my weekly benefit is $400 and I earn $200 in contract work, I'd get $195 in unemployment that week?
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Mason Kaczka
•Exactly! $400 - ($200 - $5) = $205 in benefits. But double-check my math, I always get confused with these calculations.
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Sophia Russo
WARNING: Make sure your contract work doesn't interfere with your job search requirements! You still need to be actively looking for permanent work and available for interviews. If the contract is full-time, you might not meet the 'able and available' requirement.
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Alicia Stern
•Oh crap, I didn't think about that. The contract would be about 30 hours/week. Does that count as full-time?
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Sophia Russo
•30 hours should be fine. It's when you're working 40+ hours that Washington ESD might question if you're truly available for other work.
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Evelyn Xu
•I worked 35 hours/week on a contract and never had issues with job search requirements. Just kept applying to permanent positions.
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Dominic Green
Does anyone know if you have to pay taxes on unemployment benefits if you're also earning contract income? This is getting really complicated...
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Gabriel Graham
•Yes, unemployment benefits are taxable income. You should be having taxes withheld from your weekly benefits or setting money aside for tax time.
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Dominic Green
•Ugh, so I pay taxes on the unemployment AND the contract work? This barely seems worth it.
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Hannah Flores
•It's still worth it! Any income is better than no income, and the partial benefits help bridge the gap.
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Kayla Jacobson
Just want to add - if your contract work turns into a permanent position, make sure you notify Washington ESD immediately. Don't wait until your next weekly claim. Call them or update your profile online.
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Alicia Stern
•Good point. Though calling Washington ESD is nearly impossible these days. Always busy signals.
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Sarah Jones
•That's exactly why I mentioned claimyr.com earlier. They handle the calling frustration so you can actually talk to someone when needed.
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William Rivera
Been doing contract work on and off for years while collecting UI when needed. The system actually works pretty well once you understand it. Key is keeping good records and being honest about everything. Washington ESD isn't trying to trick you - they just need accurate information.
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Alicia Stern
•That's reassuring. I was worried they'd see contract work as trying to game the system somehow.
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William Rivera
•Nah, they expect people to take temporary work. It's encouraged actually - shows you're actively trying to get back to full employment.
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Grace Lee
One more tip: if your contract work involves travel or unusual schedules, make sure you can still meet the 'available for work' requirement. You need to be available during normal business hours for job interviews and such.
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Alicia Stern
•The contract is remote work so that shouldn't be an issue. Thanks for thinking of that though.
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Mia Roberts
•Remote work is perfect for this situation. Gives you flexibility to keep job searching while earning some income.
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The Boss
Bottom line: take the contract work! Report everything accurately, keep filing your weekly claims, and don't overthink it. The partial unemployment system exists exactly for situations like this.
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Alicia Stern
•Thanks everyone! I feel much more confident about taking this contract now. Going to accept the offer and just stay on top of the reporting requirements.
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Evan Kalinowski
•Good luck! Hope the contract leads to something permanent.
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Salim Nasir
I went through this exact situation last year! Took a 10-week contract while on unemployment and it worked out great. Just remember that Washington ESD calculates your partial benefits automatically once you report your earnings - you don't need to do the math yourself. The hardest part is just remembering to file every single week even when you're busy with contract work. Also, keep a simple spreadsheet of your weekly hours and earnings - makes the reporting so much easier. The contract income actually helped me stretch my unemployment benefits longer since I wasn't using them up as quickly. Win-win situation!
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