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ESD excess earnings rule confusion - DoorDash income vs $800 weekly benefit amount

I'm really confused about how ESD calculates 'excess earnings'. My weekly benefit amount is supposed to be over $800, but I've been doing DoorDash to keep some income while my regular claim is still in adjudication. When I report anything over $400 from DoorDash on my weekly claim, the system tells me I have 'excess earnings' and I'm not eligible for benefits that week. But I thought excess earnings meant earning MORE than your weekly benefit amount? I'm earning LESS than half of my weekly benefit amount but still getting denied. Is this right? Does anyone understand how this calculation actually works? I can't get through to anyone at ESD to explain it.

The excess earnings rule is confusing but here's how it works: Washington uses a formula where they deduct 75% of your earnings from your weekly benefit amount. So if your WBA is $800 and you earn $400 from DoorDash, the calculation would be: $800 - (75% of $400) = $800 - $300 = $500. You'd receive $500 in unemployment for that week, not zero. Something doesn't sound right about your situation. Are you sure you're reporting your gross earnings correctly? Remember DoorDash earnings need to be reported BEFORE expenses.

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Wait, really? I've been reporting my net earnings after gas and mileage since that's my actual profit. Is that wrong? I didn't know I was supposed to report the gross amount before expenses. That might explain the problem!

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THE WHOLE SYSTEM IS DESIGNED TO DENY YOU BENEFITS!!!! I went through the same thing last year when I was doing Uber. You have to report GROSS earnings not NET. They don't care about your expenses at all, which is totally unfair for gig workers. We burn through gas and put wear on our cars but ESD treats it like regular wages. The system is rigged against us self-employed people.

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this happened to my cousin too. he was doing instacart and got denied benifits for weeks cuz he didn't know about the gross vs net thing. total bs system.

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This is a very common misunderstanding with UI benefits. For self-employment/independent contractor work like DoorDash, you must report your gross earnings (before expenses) for the week you performed the work, not when you got paid. The formula is: Weekly Benefit Amount - (0.75 × Gross Earnings) = Partial UI Payment. If this calculation results in less than $1, you won't receive benefits for that week. So with your $800 WBA, you could actually earn up to about $1,065 in gross income before being completely disqualified for that week (because $800 - (0.75 × $1,065) would approach zero).

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Thank you for explaining this so clearly! I've definitely been reporting my earnings wrong then. I've been subtracting my gas and car expenses before reporting. No wonder the system kept saying I had excess earnings. Should I call ESD to correct my past weekly claims or just report correctly going forward?

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I made this exact mistake when i was on unemployment in 2024!! reported my doordash earnings after expenses and got hit with an overpayment notice 2 months later for like $2900. had to setup a payment plan and everything. def call esd to fix this asap before they come after you later.

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Oh no, that's exactly what I'm worried about! I've been reporting this way for almost a month. Did they add penalties when they sent you the overpayment notice?

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yep they added some kind of interest penalty thing. not huge but still annoying when it wasnt my fault their instructions are so confusing!

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Don't worry too much - if you call and explain the misunderstanding, sometimes they'll waive the penalties. I had something similar happen (different situation but also an honest mistake) and they were actually reasonable about it. Just be prepared to wait on hold FOREVER trying to reach them.

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If you need to reach ESD quickly to fix this, try using Claimyr (claimyr.com). I was in a similar situation with incorrect reporting and couldn't get through for weeks. Claimyr got me connected to an actual ESD agent in about 25 minutes when I'd been trying for days on my own. They have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3. It was worth it to get this sorted out before it turned into a bigger problem with overpayments and penalties.

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Thanks for the tip! I've been trying to call for days and just get the 'high call volume' message. I'll check this out because I really need to talk to someone and fix this before it gets worse.

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So I worked out the math based on what they're saying - with an $800 WBA, here's what you'd actually get if you report correctly: - $200 DoorDash earnings = $650 UI payment ($800 - 75% of $200) - $400 DoorDash earnings = $500 UI payment ($800 - 75% of $400) - $600 DoorDash earnings = $350 UI payment ($800 - 75% of $600) - $1000 DoorDash earnings = $50 UI payment ($800 - 75% of $1000) - $1067 or more = $0 UI payment (excess earnings) So yeah if you've been subtracting expenses before reporting, you've been shorting yourself benefits!

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This is SO helpful, thank you! I'm going to save this calculation for reference. I had no idea I could earn that much and still get some benefits. Time to call ESD and fix my past claims.

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i think ur supposed to report the week you WORKED not when u got paid too. doordash pays on different schedule than when u actually did the deliveries right? that messed me up before

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This is absolutely correct and another common mistake. When reporting earnings to ESD, you must report based on when you performed the work, not when you received payment. So if you delivered for DoorDash on Tuesday but didn't get paid until the following Monday, those earnings would be reported for the week containing that Tuesday. This is different from how you might think about income for your personal budgeting.

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Update: I finally got through to ESD today! The agent confirmed everything you all said about reporting gross earnings before expenses. They're having me submit corrected weekly claims for the past 4 weeks. The good news is I'll actually be getting MORE money than I thought once this is fixed, since I was over-reporting my earnings by deducting expenses first. Thanks everyone for your help understanding this confusing system!

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Great news! Glad you got it sorted out. For your tax purposes, you'll still be able to deduct all those business expenses on your Schedule C when you file taxes. The unemployment system just doesn't account for those expenses in their weekly benefit calculations.

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