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Paolo Rizzo

Do you have to claim vacation pay on unemployment Washington ESD weekly claims?

I'm filing my weekly claims with Washington ESD and just realized I'm getting a vacation payout from my previous employer next week. It's about $1,200 for unused vacation time that I earned before I got laid off. Do I need to report this on my weekly claim? I'm confused because it's not really 'work' but it is money from my former employer. Don't want to mess up my UI benefits but also don't want to get in trouble for not reporting something I should have. Anyone know the rules on this?

Yes, you absolutely need to report vacation pay on your weekly claims. Washington ESD considers vacation pay as deductible income that can affect your weekly benefit amount. The timing matters though - you report it for the week you actually receive the payment, not when it was earned.

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Thanks! So I report it the week I get the check, even though I earned those vacation days months ago?

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Exactly right. Report it when you receive it, and it will reduce your weekly benefit dollar for dollar up to your benefit amount.

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I had the same situation last year. Got a $800 vacation payout and didn't report it thinking it was money I already earned. Washington ESD caught it during their quarterly wage crossmatch and I had to pay back benefits. Definitely report it!

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Oh wow, how did they find out? Did you get in trouble or just have to pay it back?

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They match your reported earnings with what employers report to the state. I just had to repay the overpayment but no penalties since it wasn't intentional fraud.

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This is where something like Claimyr can be super helpful - when you have specific questions about reporting income, you can actually get through to a Washington ESD rep to clarify. I used claimyr.com after getting conflicting info online and they have a video demo at https://youtu.be/7DieNd3C7zQ that shows exactly how it works. Way better than trying to call ESD directly and getting busy signals.

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Never heard of this before, does it actually work? I've been trying to reach someone at ESD for weeks about my adjudication.

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Yeah it worked for me. Got connected within like 20 minutes instead of spending hours redialing. Worth it when you need actual answers about your specific situation.

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wait so any money from your old employer counts as income?? what about my final paycheck that included overtime from my last week?

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Your final paycheck for work actually performed doesn't count as deductible income for unemployment. Only things like vacation pay, severance, holiday pay count.

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ok good because I already spent that money on rent lol

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The Washington ESD handbook says vacation pay is deductible income and must be reported. What gets confusing is that some people think if you 'earned' the vacation time before becoming unemployed it doesn't count, but that's wrong. The rule is based on when you RECEIVE the payment, not when you earned it. Same goes for holiday pay, severance, etc.

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So it's going to reduce my weekly benefit amount dollar for dollar? That seems harsh since I already earned this vacation time.

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Yes, it reduces your benefit up to your weekly benefit amount. So if your benefit is $400 and you report $1200 vacation pay, you'd get $0 that week and the remaining $800 would reduce future weeks.

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Actually that's not quite right. Vacation pay only reduces benefits for the week you report it, not future weeks. If you get more than your weekly benefit amount in vacation pay, you just get $0 for that week.

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I'm dealing with something similar but it's severance pay instead of vacation. My employer is paying me 3 weeks severance but spreading it over 6 weeks. Do I report the actual amount I receive each week or the total amount divided by weeks?

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Report what you actually receive each week. If they're paying half your severance each week, report that amount each week.

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Thanks, that makes sense. The weekly claims form asks what you received 'this week' so I'll go with the actual amounts.

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The ESD system is so confusing about this stuff. I reported my vacation pay wrong the first time and had to call to fix it. Took forever to get through but they were able to adjust my claim. Make sure you put the vacation pay in the right section - it's not 'wages' it's 'other income'.

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Good point about the right section. I was wondering where exactly to put it on the weekly claim form.

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Yeah there's a specific question about vacation pay and holiday pay. Don't put it under regular wages or you might confuse things.

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This whole thing is why I hate the unemployment system. You earn vacation time by working, then when you need unemployment benefits they penalize you for getting paid for time you already earned. Makes no sense.

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I get the frustration but the logic is you're getting paid for time when you're not working, which is what unemployment is supposed to cover.

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Still seems unfair when you compare it to someone who just got fired without any vacation payout.

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Pro tip: if your vacation payout is really large, you might want to ask your employer if they can delay it until you find work. Some employers will work with you on timing if you explain the situation.

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Interesting idea but I think they already processed the payout. Worth asking though.

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Yeah it's worth a shot. Some payroll departments are flexible if you haven't received the check yet.

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Had a friend who didn't report his vacation pay and Washington ESD found out months later. He had to pay back like $1,500 in benefits plus interest. They're really good at catching this stuff now.

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How do they find out? Do employers report vacation payouts separately?

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Employers report all wages and payments to the state quarterly. ESD matches that against what you reported on your weekly claims.

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I used that Claimyr service someone mentioned earlier when I had questions about reporting my severance package. Super helpful and saved me from making a mistake that could have cost me benefits. The rep explained exactly how to report different types of payments.

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How much does that cost? I might need to use it for my situation.

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They don't mention pricing upfront but honestly it was worth it to get the right information instead of guessing and potentially screwing up my claim.

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Just remember that reporting vacation pay doesn't mean you lose those benefits forever. It just means you don't get paid unemployment for that week. Your claim doesn't get extended or anything, you just get $0 for that specific week.

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That's actually really helpful to know. I was worried it would mess up my whole claim somehow.

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Nope, just affects that one week. Better to report it correctly than deal with an overpayment later.

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The Washington ESD website has a section about reporting income but it's pretty confusing. I wish they would just have clear examples for common situations like vacation payouts, severance, etc.

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Agreed! The information is there but you have to dig through so many pages to find it.

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Yeah and some of the language is so technical it's hard to know if it applies to your specific situation.

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Another thing to watch out for is if you get vacation pay from a previous employer but then start a new job the same week. You'd need to report both the vacation pay AND the new job wages.

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Good point, that would be a lot to figure out for one weekly claim.

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Yeah it gets complicated fast. That's when calling ESD for guidance makes sense, even if it takes forever to get through.

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At least vacation pay is straightforward compared to things like stock options or bonuses. Had a coworker who got laid off right before his annual bonus and that was a nightmare to figure out how to report.

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Oh man, I can imagine. Bonuses probably have all sorts of weird rules about when they count as income.

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Yeah it depends on whether it's for past work performance or future work expectations. Way too complicated.

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Bottom line - when in doubt, report it. Washington ESD would rather you over-report income than under-report it. If you report something you didn't need to, they can adjust it. If you don't report something you should have, that's when you get in trouble.

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That's probably the safest approach. Better to be overly cautious with this stuff.

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Exactly. And keep records of everything - the vacation payout stub, when you reported it, etc. Documentation is your friend if any issues come up later.

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I'm curious - does anyone know if the vacation pay affects your job search requirements for that week? Like if you report $1200 vacation pay and get $0 benefits, do you still need to do job searches?

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Yes, you still need to meet job search requirements even if you get $0 benefits due to deductible income. Your claim is still active.

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Ugh, that seems like adding insult to injury but I guess it makes sense from their perspective.

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For anyone still confused about this, the Claimyr service really is helpful for these specific questions. I was skeptical at first but it's legit - you actually talk to a real ESD agent who can look at your account and give you specific guidance about your situation.

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Do they help with other ESD issues too or just income reporting questions?

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Any ESD issue where you need to talk to an agent. Adjudication, appeals, account problems, whatever. Much better than the regular phone number.

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Thanks everyone for the help! I'm definitely going to report my vacation pay when I file my weekly claim. Better safe than sorry, and it sounds like ESD will find out anyway if I don't report it.

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Same here. This thread has been super helpful. Going to report mine too even though it means no UI benefits that week.

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Yeah, one week without benefits is better than having to pay back an overpayment later. Plus interest and penalties if they think you did it on purpose.

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One more tip - when you file that weekly claim with the vacation pay, screenshot everything. I always take screenshots of my weekly claims just in case there are any disputes later about what I reported.

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Smart idea. I never thought to do that but it makes sense to have proof of what you submitted.

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Yeah, computer glitches happen and it's nice to have backup documentation of exactly what you reported and when.

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Just wanted to add that the timing can get tricky if your vacation payout spans multiple pay periods. I got my vacation pay split across two checks - one in December and one in January. You report each payment in the week you actually receive it, not when your employer processes it. So if the first check arrives on a Tuesday, you report it for that week's claim, even if your employer dated it from the previous Friday. The key is the date YOU receive the money, not when they cut the check.

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