Commission payment from old job during unemployment - how to report to ESD correctly?
I'm facing a weird situation with my unemployment benefits and need advice. I was laid off from my HVAC sales job about a month ago (commission-only position). The tricky part is I just found out that a job I sold before being laid off is finally getting installed this week, which means I'll be receiving a commission check on this pay period. I'm super confused about how to handle this with ESD. Do I report this as income for the week I receive the check? Or should I have reported it for the week I originally sold the job? And will this commission payment disqualify me completely for this week's benefits? I don't want to mess anything up and get accused of fraud, but I also don't want to lose benefits if I'm still eligible. Has anyone dealt with delayed commission payments while on unemployment?
18 comments
Ethan Campbell
Report the commission income during the week you actually receive the payment, not when you sold it or when installation happened. When you do your weekly claim, there will be a question asking if you received any income - answer 'yes' and enter the amount before taxes. ESD uses a formula where they deduct a portion of your earnings from your benefit amount rather than automatically disqualifying you. If your commission is larger than your weekly benefit amount plus $5, you won't receive benefits that week, but you'll still remain in the system and can claim future weeks.
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Aisha Mohammed
•Thank you so much for the clear explanation! So just to make sure I understand correctly - if my weekly benefit amount is $750 and my commission check turns out to be $900, I won't get any unemployment that week, but I can still claim normally the following weeks when I don't have any income?
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Yuki Watanabe
same thing happened to me when i was laid off from solar sales last year. u report it the week u get paid not when u sold it. if its more than ur weekly benefit they just dont pay u that week but u still claim like normal
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Aisha Mohammed
•Thanks for sharing your experience! That makes me feel better knowing someone's been through the same situation. Did you have any issues with ESD questioning the payment or did the process go smoothly?
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Carmen Sanchez
When reporting income to ESD, you need to understand the difference between when work was performed versus when payment was received. For commission-based work, you report the income for the week you receive payment, not when you earned it. This is different from hourly/salary work where you report when the work was performed regardless of pay date. Also, make sure you're reporting gross income (before taxes). ESD will apply their earnings deduction formula: the first $5 of earnings don't count against your benefits, then 75% of the remaining earnings are deducted from your weekly benefit amount. Example: If your weekly benefit is $700 and you receive a $1000 commission check: - First $5 is exempt: $1000 - $5 = $995 - 75% of remainder counts against benefits: $995 × 0.75 = $746.25 - $746.25 > $700, so you wouldn't receive benefits that week But you'd remain eligible for future weeks with no income.
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Aisha Mohammed
•Wow, thank you for breaking down the formula! I didn't realize they only count 75% of earnings against the benefit amount. That's really helpful to understand exactly how they calculate it.
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Andre Dupont
I think you might be overthinking this. Just be honest about when you get paid and you'll be fine. ESD is used to dealing with all kinds of payment situations.
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Zoe Papadakis
•This is terrible advice. Being "honest" without understanding the specific reporting requirements can absolutely lead to problems. The OP is right to ask for clarification on the correct reporting method - ESD has very specific rules about how and when to report different types of income.
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ThunderBolt7
Be SUPER careful with commission income reporting! I messed this up last year and ended up with an overpayment notice for $4,200!!! I thought I should report the commission when I made the sale, not when I got paid months later. Had to go through a whole appeal process to get it fixed. DEFINITELY report it for the week you RECEIVE the money, not when you earned it. ESD's system is frustrating but at least they're consistent on this rule.
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Aisha Mohammed
•Oh wow, that sounds like a nightmare! An overpayment of $4,200 would completely wreck me right now. I'll be extremely careful to report it correctly. Did you eventually get the overpayment situation resolved?
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Jamal Edwards
Has anyone tried calling ESD directly to ask? Been trying to get through for 3 days about a different issue and the automated system just disconnects me every time. So frustrating!
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Mei Chen
•I was having the same issue trying to reach ESD until someone recommended Claimyr.com - it's a service that holds your place in line and calls you when they get an agent. Saved me from having to redial for hours. They have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3. It was worth it to finally get my adjudication issue resolved after weeks of trying.
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Zoe Papadakis
The advice about reporting it when you receive payment is correct, but there's another wrinkle to consider: if the commission is large enough, it could potentially trigger the "excessive earnings" flag in their system, which might temporarily stop your claim. If that happens, you'll need to restart your claim for future weeks. Not saying it will happen, just something to be aware of.
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Aisha Mohammed
•I hadn't even thought about that possibility. Do you know what amount would be considered "excessive earnings"? Is it just anything above my weekly benefit amount?
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Ethan Campbell
One more important thing - keep detailed records of everything! Save the commission statement showing the date you received payment, documentation showing when you were laid off, and proof of when the sale was originally made. If ESD ever questions you about it (even months later), having this documentation will protect you.
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Aisha Mohammed
•That's excellent advice. I'll gather all of that documentation right now and keep it organized in case I need it later. Thank you!
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Yuki Watanabe
did u check the esd handbook? its on there website and explaens all this stuff about reporting diffrent types of income
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Carmen Sanchez
•Good suggestion. The specific section OP should read is "How to Report Earnings" in the ESD Unemployment Benefits Handbook. It clearly explains the difference between reporting commission income versus regular wages. Here's the direct link: https://esd.wa.gov/unemployment/benefits-handbook
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