Can you collect Washington ESD unemployment while starting a business?

So I can start the business but I need to report everything? What if I'm just doing initial setup stuff like registering the business name and building a website?

Setup activities without income don't need to be reported, but once you start earning anything or spending significant time on business operations, you need to report it. The 'able and available' test is what trips people up.

Have you tried using Claimyr? I found out about it recently and it actually got me through to a Washington ESD agent in about 20 minutes. They have a service that calls for you and navigates the phone system. Check out claimyr.com - there's even a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works.

Never heard of that but I'm willing to try anything at this point. The Washington ESD phone system is broken.

The rule is you can work part-time and still collect partial benefits, but if you work more than your designated work search hours or earn over a certain threshold, it affects your claim. Did you keep track of your hours?

I thought I did but maybe I messed up the reporting. This system is ridiculous.

That's really helpful! How do you balance the job search requirements with working on your business? Do you still have to apply to 3 jobs per week?

Yes, you still need to meet the job search requirements. I apply to freelance positions and contract work that relates to my business goals, which counts toward the requirement. Just make sure you're genuinely available to accept suitable work.

Wait, freelance applications count toward job search? I've been only applying to full-time W2 positions.

Oh no, that's exactly what I'm worried about. How much was the penalty?

I think it was like a 15% penalty plus interest. The key lesson is report EVERYTHING, even if it seems insignificant.

I had no idea this existed! How do I apply for this program?

You need to contact Washington ESD directly - this definitely requires speaking to an agent since it's a specialized program. If you're having trouble getting through on the phone, that Claimyr service I mentioned earlier would be perfect for this.

This is terrible advice. Washington ESD does audits and they can cross-reference business registrations, tax filings, and bank records. Getting caught committing unemployment fraud is a felony in Washington state.

ok ok point taken. guess honesty is the best policy even with government stuff

How did Washington ESD determine you were still available for work? Did they question your business activities?

They never questioned it because I was transparent from the start. I reported my business income on weekly claims and continued applying for jobs in my field. As long as you're not turning down job offers to focus on your business, you should be fine.

What happens if your business takes off and you start making more money? Do you have to stop collecting unemployment?

If your business income exceeds your weekly benefit amount, you won't receive any unemployment benefits for that week. But you can still file your claim and report the income - this keeps your claim active in case business slows down.

Right? And when you try to call for clarification you get stuck in phone hell. I've been trying to reach someone for weeks about my specific situation.

That's exactly why services like Claimyr exist. Sometimes you just need to talk to a real person who knows the current rules. Worth checking out if you're stuck in the phone system loop.

Business expenses without income don't directly affect your claim, but they could be evidence that you're actively operating a business. The key question is whether these activities interfere with your availability for work.

Thanks, that makes sense. I guess it comes down to being able to accept a full-time job if one is offered.

There's no specific hour limit in Washington state law, but it's about being 'able and available.' If you're working 40+ hours a week on your business, it would be hard to argue you're available for full-time employment.

That makes sense. So it's more about demonstrating availability than specific hour limits.

That's encouraging! Did you mention the business activities in your job search log?

I included networking events and industry activities related to my business as part of my work search activities. Just made sure to also apply for traditional employment opportunities.

Good to know it's competitive. I'll still apply but plan for the regular rules as backup.

What are the requirements to get into that program? Sounds like it would solve a lot of these complications.

Thanks everyone for all the advice! Sounds like it's definitely possible but requires careful documentation and honest reporting.

Agreed, transparency is key. Washington ESD would rather work with honest claimants than deal with fraud investigations.

This is such good advice! I never thought about keeping screenshots of the weekly claims. That's definitely something I'll start doing if I move forward with my business idea. The documentation aspect seems really important based on everyone's experiences here. It sounds like having a paper trail protects you if questions come up later during audits or reviews. Thanks for sharing that tip!

This is incredibly helpful, thank you! The spreadsheet idea is brilliant - I was wondering how to keep track of everything systematically. Your point about the 30+ hours affecting the "available for work" answer is something I hadn't considered. That's exactly the kind of detail that could trip someone up if they're not thinking about it carefully. I really appreciate you sharing your real experience with this. It gives me confidence that it can be done properly if I'm just super organized and honest about everything from the start.