Does 1099 affect Washington ESD unemployment benefits - confused about reporting

Thanks! So if I work 10 hours this week but don't get paid until next month, I report it this week?

Exactly right. It's based on when you perform the work, not when the payment hits your account.

Did it reduce your benefits dollar for dollar or is there some kind of partial payment?

washington esd has a formula where you can earn up to a certain amount before it affects benefits. i think its like your weekly benefit amount minus $5 but dont quote me on that

Have you tried Claimyr? I found them when I was having similar problems getting through to Washington ESD. It's at claimyr.com and they actually got me connected to an agent who explained the whole 1099 reporting process. There's a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works.

Never heard of that service before. Does it actually work or is it just another way to waste time?

It worked for me. I was skeptical too but I was desperate after weeks of not being able to get through. The agent I talked to was really helpful about the 1099 stuff.

What kind of documentation did they want? Just the 1099 forms or more than that?

They wanted contracts, invoices, time logs, everything. The 1099 alone wasn't enough proof of when I actually did the work.

So if my weekly benefit is $400, I can earn up to $395 without losing any unemployment?

Correct. If you earn $300 that week, you'd still get your full $400 unemployment. If you earn $500, you'd get $300 unemployment ($400 - ($500 - $395)).

wait that doesn't sound right to me. i thought any income reduced benefits

No, Washington has a partial benefit formula. You can check the Washington ESD handbook for the exact calculation, but there is a small earning allowance.

You report ALL income regardless of amount. Even $50 needs to be reported on your weekly claim.

That seems excessive for such a small amount but I guess better safe than sorry

Can you give an example of how you balance it? I'm worried about working too much and ending up worse off.

I try to keep my 1099 earnings right around my benefit amount minus $5. That way I get the maximum combined income without losing unemployment benefits. Takes some planning but it works.

Tell me about it! I've been trying to get clarification from them for weeks. Finally used Claimyr to get through and talk to someone who could explain it properly. Worth every penny to avoid screwing up my benefits.

How much does that service cost? I'm already tight on money.

I'd rather pay a small fee to talk to someone who knows what they're talking about than risk losing thousands in benefits because I reported something wrong.

You still need to meet your job search requirements even if you're doing 1099 work. The freelance work doesn't count toward your required work search activities unless it could lead to permanent employment.

So I still need to apply to 3 jobs per week even though I'm working part-time as a contractor?

Yes, unless the 1099 work is specifically in your field and could potentially become permanent employment. But you'd need to discuss that with Washington ESD directly.

You need to contact Washington ESD immediately to correct it. Don't wait - unreported income can be considered fraud even if it was an honest mistake.

How do you even get through to them though? I've been trying for days.

I had success with Claimyr when I needed to fix a reporting error. Got connected within a few hours instead of spending days trying to get through on my own.

Good point! I hadn't even thought about the tax implications. Do you know what percentage to set aside?

Generally 25-30% is safe for federal and state taxes plus self-employment tax. Better to overestimate than get hit with a big bill next year.

What's considered too much? Is there a specific hour limit?

There's no exact number but if you're consistently working 35+ hours a week on 1099 projects, they might consider you unavailable for full-time employment.

What happened when you got the notice? Did you have to pay back benefits?

I had to provide documentation and they adjusted my past claims. Luckily I kept good records so I could prove what I earned each week. Could have been much worse.

Thanks everyone! This has been really helpful. I feel much more confident about taking this freelance work now that I understand the reporting requirements.

Glad this thread helped! The 1099 stuff is confusing but once you understand the system it's pretty straightforward.

Great idea! I'll set something up this weekend before I start the new project.

I use a simple notes app on my phone to track daily hours and then transfer to my weekly claim. Whatever system you use, just be consistent.

This whole thread has been incredibly helpful! As someone who's been hesitant to take on any freelance work while on unemployment, I now feel like I have a much better understanding of how to handle the reporting properly. The key takeaways seem to be: report ALL income in the week you do the work (not when paid), keep detailed records, and understand the partial benefit calculation. Thanks everyone for sharing your experiences!