ESD pandemic waiver refund confusion - only getting back $8,900 of my $10,300 payment?

same thing happend to me! i paid $6,750 on a $9,200 overpayment and only got back $5,880. the lady i talked to mumbled something about administrative fees and federal vs state portions but i didnt really understand. i was just so relieved to get ANYTHING back after this whole nightmare that i didnt push for more info.

The difference is likely due to two factors: 1) They do withhold taxes on the refund amount since it's considered income for the current year, and 2) There's often an administrative fee (usually around 10-15%) that's deducted from pandemic waiver refunds. The waiver only forgives the overpayment itself, not necessarily all the associated fees. Additionally, if part of your overpayment was from federal programs (like FPUC) and part from regular UI, they might be processing them differently or on different timelines. I recommend requesting an itemized statement of your refund calculation - they're required to provide this upon request. You can do this through your eServices messaging center.

I work with unemployment claims and can explain what's likely happening. The differential is almost certainly related to how your original payments were applied. When you make payments toward an overpayment, they're distributed across several categories: 1. The principal overpayment amount 2. Interest (if applicable) 3. Administrative fees (typically 1-3%) 4. Collection costs (if it went to collections) When a waiver is approved, it typically only applies to the principal amount, not to the fees or interest that accumulated. Also, as mentioned above, the refund is considered taxable income in the year you receive it, so they may be withholding federal taxes (around 10%) automatically unless you specifically requested otherwise. I recommend calling ESD back and specifically asking for an "itemized breakdown of your waiver refund calculation." Use those exact words. You're legally entitled to this information.

I got my waiver approved back in January and had a similar situation. I had paid about $7,200 toward a $11,500 overpayment and got back $6,450. When I called to ask about it, the rep explained that they had to take out for: 1) The 3% processing fee that was part of my original repayment plan 2) Federal tax withholding at 10% (you'll get a 1099-G for this amount) He said I could have opted out of the tax withholding if I had submitted some form beforehand, but nobody ever told me about that option 🙄

Hey there, I've helped several people navigate these pandemic waivers and the refund process is definitely confusing. If you're struggling to get answers from ESD by phone (like most people), try using Claimyr. It's a service that gets you through to an actual ESD agent usually within 20-30 minutes instead of spending days trying to get through. I used it myself and actually got a helpful rep who explained my waiver refund calculation in detail. They have a video that shows how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3. The website is claimyr.com - definitely worth it when you need real answers about something as important as thousands of dollars in refunds!

Anyone else notice how they're lightning-fast to collect overpayments but take forever to issue refunds? My waiver was approved 5 weeks ago and I'm still waiting for the money. When I called today they said it could be "up to 8 more weeks" before I see the refund. But when they thought I owed THEM money, they were garnishing my wages within days. Make it make sense.

To follow up on my earlier comment and address some questions I'm seeing - yes, the refund is considered taxable income in the year you receive it. This is because when you originally paid back the overpayment, you likely received a tax deduction for that repayment (or could have claimed one). So from the IRS perspective, the refund is new income. Regarding timeline: Current processing time for waiver refunds is approximately 6-10 weeks from approval date. If you're reaching week 8 without payment, I'd recommend contacting your state representative's office - they have dedicated ESD liaisons who can often expedite these cases.

One more thing to be aware of - if your overpayment was due to an agency error (which many pandemic ones were), you might be eligible for an additional waiver of the interest and penalties. This isn't automatic - you need to specifically request a "waiver of fees and interest under RCW 50.20.190(4)" in writing. The standard waiver program doesn't always include this. Could explain some of the difference in your refund amount.

Update: I finally got through to ESD after trying for two days straight. The agent explained that the $1,400 difference was broken down as: - $515 in administrative fees (which aren't waived) - $685 in federal tax withholding (10%) - $200 in interest that had accrued before I started repayment She said I'll receive a detailed breakdown in the mail within 2 weeks, and the actual refund should be deposited within 30 days. Thanks everyone for your helpful advice - it gave me the right questions to ask!