What happens if you collect Washington ESD unemployment while working - got caught need advice

The notice says I have 30 days to appeal or request a hearing. Should I do that or just try to work out a payment plan?

If you legitimately didn't know you had to report cash tips, you might have grounds for an appeal. But if you knowingly didn't report wages, a payment plan might be your best option.

Did they file criminal charges against you? That's what I'm most worried about.

No criminal charges in my case because it was under $5,000 and I cooperated fully. They usually reserve criminal prosecution for larger amounts or repeat offenders.

The threshold for felony fraud in Washington is $1,500, so definitely take this seriously and get professional help if needed.

Yeah I've been trying to call for three days and can't get through. This is so stressful.

I had the same problem until someone told me about Claimyr. It's a service that helps you actually get through to Washington ESD agents. Check out claimyr.com - they have a video demo at https://youtu.be/7DieNd3C7zQ that shows exactly how it works. Worth it when you're dealing with something this serious.

I'll look into that, thanks. At this point I'll try anything to actually talk to someone.

I honestly didn't know cash tips counted. I thought only official payroll wages had to be reported.

ANY income you earn while collecting benefits needs to be reported, even odd jobs or cash work. It's clearly stated in the weekly claim certification questions.

This is exactly why I always reported everything, even $20 here and there. Better safe than sorry with Washington ESD.

Most of it was cash so I don't have much documentation. Will that hurt my case?

It makes it harder to prove exact amounts, but Washington ESD probably already has information from your employer or other sources. Be honest about what you remember earning.

Yes, absolutely report it on your next weekly claim. Washington ESD allows you to report wages from previous weeks if you forgot. Much better to self-report than get caught later.

ok doing that right now. This thread scared me straight lol

Smart move. The penalties for voluntary disclosure are much less severe than getting caught in an audit.

I've been all over their website but it's confusing. Some pages say different things about penalties.

The most current information is in the adjudication and overpayment sections. If there are contradictions, go with the most recent publication dates.

How long do I have before they start collection actions?

Usually after the appeal period expires (30 days) they can start collection procedures. But if you're communicating with them and working on a solution, they're more likely to work with you.

Exactly. Proactive communication is key. They'd rather get their money back through a payment plan than go through expensive collection procedures.

How much does that typically cost? I'm already strapped for cash dealing with this overpayment.

Many attorneys offer free consultations for unemployment cases. Some might even work on a contingency basis if they think they can reduce your penalties significantly.

The information is there, but you have to read all the materials they send you when you first file. Most people just focus on getting approved and don't read the ongoing requirements carefully.

true, I definitely didn't read everything thoroughly. Lesson learned for next time I guess.

Did it cost a lot? I'm trying to figure out if it's worth it.

Way less than I expected and totally worth it when you consider how much time it saves and the stress it eliminates. Plus when you're dealing with fraud allegations, you really need to talk to an actual person.

A whole year?? That sounds awful. Did it affect his credit or anything?

It didn't go to collections because he stayed current on his payment plan. As long as you stick to the agreement they make with you, it shouldn't affect your credit.

I wasn't trying to defraud anyone, I just made a mistake and didn't understand the rules.

I understand, and Washington ESD usually takes intent into account when determining penalties. That's why it's important to be completely honest about your situation.

Agreed. They were much more lenient with me when they could see it was genuinely a misunderstanding rather than intentional fraud.

Tax purposes? What do you mean?

The overpayment you have to return might affect your tax situation since you originally paid taxes on those benefits. You should talk to a tax professional about that.

How long did the whole process take once you got in touch with them?

About 3 weeks from first contact to having the payment plan set up. They moved pretty quickly once I was able to actually talk to someone and explain my situation.

They do share information with other state agencies and the IRS for tax purposes. For employment, it would only come up if a background check specifically looked at benefit fraud, which is rare for most jobs.

That's somewhat reassuring. I was worried it would show up on regular employment background checks.

Thank you everyone for all the advice. I'm going to try calling Washington ESD again tomorrow and if I can't get through I'll look into that Claimyr service. This has been really helpful.

Good luck! Remember, thousands of people deal with overpayment issues every year. It's stressful but manageable if you handle it properly.

Yeah definitely try Claimyr if you can't get through the regular way. When you're dealing with something this serious, the peace of mind of actually talking to someone is worth it.

How do I know if I need a hearing versus just working out a payment plan?

If you disagree with Washington ESD's determination of fraud or the amount of overpayment, you'd request a hearing. If you agree with their findings and just want to work out payments, you can usually do that without a hearing.