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Sean O'Donnell

How much can you make and still collect unemployment in Washington?

I just started a part-time job that pays about $200-300 per week and I'm still collecting unemployment benefits from Washington ESD. I'm confused about the rules - how much can I actually earn before they cut off my benefits completely? I've been reporting my earnings on my weekly claims but I want to make sure I'm not going to get hit with an overpayment notice later. Does anyone know the exact limits?

The general rule is that you can earn up to your weekly benefit amount minus $5 and still get some unemployment. So if your weekly benefit is $500, you could earn up to $495 and still get $5 in benefits. But if you earn more than your weekly benefit amount, you get nothing that week.

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That makes sense, thank you! My weekly benefit is $420 so I should be okay with $200-300 per week in earnings.

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Wait, I thought there was also something about working less than full-time hours? Like you can't work more than 32 hours or something?

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You're partially correct but there's more to it. Washington ESD uses a formula where they deduct 75% of your gross weekly earnings from your weekly benefit amount. So if you earn $300 and your weekly benefit is $420, they'd subtract $225 (75% of $300) from your $420 benefit, leaving you with $195 in unemployment for that week.

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Oh wow, I had no idea about the 75% rule. That's actually better than I thought - I was worried I'd lose all my benefits.

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This is confusing. I've been afraid to take any work because I thought I'd lose everything. So I can actually work part-time and still get some benefits?

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Yes, exactly! The system is designed to encourage people to take part-time work while looking for full-time employment. Just make sure you report all earnings honestly on your weekly claims.

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I had this exact same question a few months ago and couldn't get through to Washington ESD by phone to ask. Ended up using this service called Claimyr that helps you get connected to an actual agent - found it at claimyr.com. They have a demo video at https://youtu.be/7DieNd3C7zQ showing how it works. Finally got my questions answered after weeks of trying to call on my own.

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How much does that cost? I've been trying to get through for two weeks with questions about my part-time work.

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It was worth it for me - way less stressful than spending hours on hold or getting disconnected. The agent was able to explain exactly how my part-time earnings would affect my benefits.

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MAKE SURE YOU REPORT EVERYTHING!!! I made the mistake of not reporting some cash work I did and got hit with a $2800 overpayment notice. Washington ESD does not mess around with unreported income.

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Yikes, that's scary. I've been reporting everything, even tips from my part-time serving job.

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How did they find out about your unreported income? Do they cross-check with employers or something?

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They have access to wage databases and can see if you worked somewhere even if you don't report it. Not worth the risk!

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Also remember that you still have to be actively looking for full-time work and available for work. Taking a part-time job doesn't excuse you from the job search requirements - you still need to log your job search activities in WorkSourceWA.

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Wait, so I still have to do 3 job search activities per week even if I'm working part-time?

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Yes, unless your part-time work is more than 30 hours per week. Then you might not be considered available for other work.

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I'm working about 25 hours a week at $15/hour, so that's $375 gross per week. My unemployment benefit is $480 per week. Using the 75% rule, they'd subtract $281.25 from my $480 benefit, leaving me with about $199 in unemployment. Plus my $375 in wages, that's $574 total per week. Not bad!

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That's actually a pretty good setup - you're making more combined than just unemployment alone.

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Be careful about working too many hours though. If they decide you're not available for full-time work, they could cut your benefits entirely.

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There's also the issue of when you report the income. You report earnings for the week you actually worked, not when you got paid. So if you worked Monday-Friday of last week but didn't get paid until this Tuesday, you report those earnings on last week's claim.

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Good point, I wasn't sure about the timing. I'll make sure to report based on when I worked, not when I got paid.

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This tripped me up too. I was reporting based on pay dates and my caseworker had to explain the correct way during a phone appointment.

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What about vacation pay or severance pay? Does that count as earnings too?

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Yes, vacation pay and severance are considered deductible income. They use the same 75% reduction formula for those types of payments.

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Ugh, so complicated. Why can't they just have a simple chart or something?

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I tried calling Washington ESD about this same question and was on hold for 3 hours before giving up. The website isn't super clear about all the scenarios either.

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That's exactly why I used Claimyr - saved me so much time and frustration. Sometimes you just need to talk to a real person to understand these rules.

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I've had better luck calling right when they open at 8 AM, but even then it's usually at least an hour wait.

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Does freelance work count the same way? I do some graphic design projects that pay irregularly.

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Yes, any income from self-employment or freelance work needs to be reported. You report it for the week you performed the work, even if payment comes later.

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What if I do a project over multiple weeks? Do I divide the payment across all the weeks I worked on it?

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You should divide it proportionally based on how much work you did each week. Keep good records of your hours.

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The key thing is honesty. Report everything and let Washington ESD do the math. It's better to get a smaller benefit check than to risk an overpayment investigation.

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Definitely agree. I'd rather be safe than sorry, especially after hearing about that $2800 overpayment earlier in this thread.

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Exactly. The penalties for not reporting income can be way worse than just the overpayment amount.

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One more thing - if you're working part-time for the same employer who laid you off, there might be different rules. Something about 'standby' status. Worth checking on that if it applies to your situation.

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That doesn't apply to me, but good to know for others who might be in that situation.

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Yes, standby has different rules. You can work up to 2 days per week without affecting your benefits if you're on standby status with your regular employer.

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