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Nora Bennett

Will ESD deduct holiday pay when filing by phone? Need help with weekly claim questions

I'm stressing about my weekly claim because of the upcoming holiday. My employer said we get holiday pay even though we're not working. I'm wondering if ESD will deduct this from my unemployment benefit? Also, I always file by phone because the website confuses me - how exactly should I answer when they ask about the holiday pay on the phone system? I'm worried I'll mess it up and then get hit with an overpayment later. Anyone know the right way to handle this?

Ryan Andre

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Yes, you HAVE to report your holiday pay when filing your weekly claim, whether you do it by phone or online. When the phone system asks if you received or will receive holiday pay for the week, press 1 for YES. Then it will ask you to enter the gross amount (before taxes) using the keypad. Holiday pay DOES count as earnings and will reduce your benefit for that week if it's over the earnings allowance (which I think is $162.25 in 2025). Don't try to hide it or you'll definitely end up with an overpayment notice later!

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Nora Bennett

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Oh, thank you for explaining! So will they just reduce my benefit that week or could I lose the whole payment? My holiday pay will be about $240.

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Lauren Zeb

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i had the same problem last Christmas got so confused with the phone questions lol. just remember holiday pay counts as work even tho ur not working it's weird

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Nora Bennett

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It IS weird! Like I'm not actually working but they count it anyway? The whole system is so complicated.

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You need to report any holiday pay as income for the week in which the holiday falls, not when you receive the payment. When using the phone system, press 1 for YES when asked about holiday/vacation pay. Then enter the gross amount (before taxes) when prompted. Holiday pay reduces your weekly benefit amount according to the 75% rule - for every $4 you earn, your weekly benefit is reduced by $3. So with your $240 holiday pay, they'll deduct $180 from your weekly benefit amount. If your weekly benefit is less than $180, you won't receive anything for that week, but you'll still need to claim it to maintain your claim. Be sure to keep claiming every week, even weeks where you might not receive a payment due to holiday pay.

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Wait, I thought it was a 75% deduction on anything OVER the earnings allowance ($162.25), not on the total amount? So they'd only deduct 75% of ($240 - $162.25) = 75% of $77.75, which is about $58.31 from their weekly benefit. Has this changed for 2025?

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Nora Bennett

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This is really helpful! I get $398 weekly benefit so sounds like I'll still get something that week. So I just need to press 1 for yes and enter 240 on the keypad when it asks. Seems simple now but I was so worried about messing up.

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Anthony Young

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my supervisor told me holiday pay isnt the same as regular pay so we dont have to report it but now im wondering if thats right?

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Your supervisor is incorrect. Holiday pay absolutely must be reported to ESD as earnings for the week in which the holiday occurs. Not reporting it is considered misrepresentation and can result in penalties, including having to pay back benefits with additional penalty amounts added. Always report ALL types of income to ESD, including regular wages, holiday pay, vacation pay, severance, tips, commissions, and bonuses.

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Admin_Masters

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I've been trying to get through to ESD for THREE WEEKS to ask this exact question!!! The phone system is impossible - I've called 42 times and either get hung up on or told the wait is over 2 hours and then disconnected anyway. I've tried eServices messaging but no response. I'm going to miss out on benefits because I can't get a simple answer about holiday pay!

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Ryan Andre

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I had the same issue trying to reach ESD last month. A friend told me about this service called Claimyr that got me through to an ESD agent in about 25 minutes instead of spending days trying. Their website is claimyr.com and they have a video showing how it works at https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3. It really saved me when I needed to ask about my adjudication issue. Way better than getting disconnected dozens of times.

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Here's the official guidance: When filing by phone, answer all questions truthfully. For holiday pay specifically: 1. When asked if you received or will receive holiday pay, press 1 for YES 2. Enter the GROSS amount (before taxes) using the keypad 3. The system will calculate any deductions automatically Keep in mind that ESD can verify your earnings with your employer, so reporting accurately is crucial. As others mentioned, your benefit will be reduced by 75% of what you earn above $162.25, not eliminated entirely unless your holiday pay exceeds your weekly benefit amount plus the earnings allowance. If you continue to have questions about the phone filing process, the automated system does have an option to speak with a claims specialist, though wait times can be long during holiday periods.

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Nora Bennett

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This makes complete sense now. I feel much more prepared to do my claim this week. Thank you all for the clear explanations! I'll be sure to report the $240 accurately.

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