EDD Lag Test Question

[Chyvan]

Originally Posted by lds777

how does that effect the entity that was providing that income to me? It's a long term relationship and afraid that might ruin it.

I get that you don't want to cause them trouble, but if it is really w-2 wages, then they are breaking the law. They will be charged for the taxes that are the responsibility of the employer. If you do nothing, they will continue to break the law. If you think that paying taxes out of your pocket that rightfully need to come from the employer and not getting the benefits you're entitled to from your labor, then you do what you want. You're the one that will be suffering the consequences, and those that come after you.

[Ariadne22]

Originally Posted by lds777

Thanks for your reply. I just realized I had a typo in my original message. My severance check was received on 4/20/16 NOT 4/20/17. But the start date of my claim benefit was 4/17/16, so it was still AFTER my benefit year started. Do you still think this severance pay will satisfy the wage requirement?? In everything I've read, I can't determine how severance pay is categorized.

California only recognizes "residuals" (like in entertainment business) income as bona fide after discharge, but not severance. So, the answer is NO. Severance is NOT bona fide.

Think about it this way, CA, unlike some states, doesn't even recognize severance as a wage offset to benefits. Therefore, severance is NOT wages. Some states either don't allow you to file, or delay payment of benefits b/c of severance, or zero out all the benefits due under claim b/c of severance. CA does none of those things.

And, all that said, NONE of those states recognize severance earnings as a qualifier for use of the LAG in a second year claim.

Originally Posted by lds777

I already filed my claim and received confirmation of receipt and what my award amount would be. This was received in the mail. But time was going by, and I did not receive any information to certify for benefits. And when I checked my online account, there was no reference of the new claim that they acknowledged receipt of in the mailed letter. So I sent an inquiry through the website. EDD said they sent me a de429L requesting for proof of wages of at least $1300 for the 04/17/16 - 04/15/17 period, and until I provided this proof my claim would remain ineligible.

California never sent you that form probably because those wages were classified as severance when reported by employer.

The severance will not clear the LAG.

Originally Posted by lds777

As far as reclassifying my 1099 income, how does that effect the entity that was providing that income to me? It's a long term relationship and afraid that might ruin it.

Yep, it will. The only reason they are paying 1099 is to avoid taxes FICA, UI, WC and attendant paperwork on W-2 wages - which is a big hassle. Not only will CA question your 1099 relationship but probably any other 1099 relationships that company has. If employer is violating CA rules, they will pay and they won't like it. Only you know, based on that questionnaire, if they are.