Does ESD count gross or net income for self-employment when calculating unemployment benefits?

You ALWAYS report GROSS income to ESD! I made this mistake when I was doing DoorDash last year and got hit with an overpayment notice 4 months later because I was only reporting my actual deposits after their fees. ESD doesn't care about your expenses - that's between you and the IRS. Trust me, you don't want to deal with the headache of an overpayment investigation!!

Actually, it's more complicated than that for self-employment. ESD follows a different calculation method for self-employment versus W2 income. For self-employment, you should report your net profit (gross minus business expenses). This is different from W2 employment where you report gross. From the ESD handbook: for self-employment, you report your net profit for each week. They understand that self-employed individuals have business expenses that reduce their actual earnings. Make sure you keep detailed records of all your expenses (gas, maintenance, phone costs, etc.) in case they ask for verification.

i think it depends on how ur registered. if ur an independent contractor its different than if u have an actual business entity. at least thats what my cousin said and he does instacart while on UI

I had this exact same question when I was doing freelance graphic design last year while on UI benefits. After spending hours trying to get through to ESD on the phone and getting disconnected multiple times, I finally found a service called Claimyr (claimyr.com) that got me connected to an ESD agent in about 20 minutes. The agent confirmed that for self-employment/independent contractor work, you should report your NET earnings after business expenses (but before taxes). They said this is different from W2 income reporting. You should keep detailed records of all expenses in case of an audit though. Check out their demo video if you want to see how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 It saved me a ton of frustration and I got a definitive answer straight from ESD.

This is one of those questions where you'll get different answers depending on which ESD agent you talk to, which is MADDENING. I've been on partial unemployment with my Etsy shop for 5 months, and I've been reporting net profit after my materials and shipping costs. I had an adjudicator review my case last month and they didn't have any issues with how I was reporting. My suggestion: document EVERYTHING. Keep all receipts for gas, car maintenance, phone bill percentage used for work, etc. Calculate your weekly expenses and subtract from gross, then report that amount. If they ever question it, you'll have documentation to back up your calculation method.

Wait does this mean if I've been reporting my gross from my side gig I've been getting LESS unemployment money than I should have been???

The official ESD guidance states you should report your NET self-employment income, which is calculated by taking your gross receipts and subtracting business expenses directly related to generating that income. This is different from how you report W2 employment, where you report gross. The confusion happens because many ESD phone representatives don't understand the distinction and give incorrect information. Make sure you're keeping detailed records of all business expenses. For rideshare, this includes: - Mileage (use the IRS standard mileage rate) - Platform fees - Portion of phone bill used for work - Car washes and maintenance - Any supplies (water, mints, etc.) Calculate these expenses weekly and subtract from your gross. That's the amount you should report.

I'm new to this whole unemployment + gig work situation and this thread has been super helpful! I just started doing Instacart deliveries while on partial UI benefits and was totally confused about the reporting. Based on what everyone is saying, it sounds like I should be tracking my mileage, keeping gas receipts, and calculating my net earnings each week rather than just reporting what Instacart pays me before their fees. Quick question - for mileage, do I track from my house to the store and back, or just the delivery portion? And do I need to use a special app or is writing it down enough for ESD's purposes? Thanks everyone for sharing your experiences - it's way more helpful than the vague info on the ESD website!