Does settlement check count as "income" when certifying? (file, receive)

[Pan90]

I received a settlement check (not that much) as a result of Door Dash being sued (I deliver for Door Dash part time).

I'm certifying for benefits and it asks "did you receive any other type of income?"

Do I include the settlement check as part of my week's income?

[Rabrrita]

Depends.

Is this the California settlement or the Massachusetts settlement?
What date range is the check covering (some ranges cover misclassification payments not payment of owed wages)
Was the date it covered part of the calculation used for benefits?

[Pan90]

Great questions!

It's for the California settlement.

The settlement is due to what transpired between August 2016 and December 2020,
but the settlement check came with a Miscellaneous Income tax form for this year, 2022.

I'll probably call EDD on Tuesday anyway,
but I was curious to know what others on here might say.

Have a fantastic 4th of July and thank you for responding to us Rabrrita!

[Rabrrita]

That's for the minimum makeup wages based on past assignments. It would be considered income now if and only if you had continuous employment with Door Dash and it come with current employee taxes withheld. But since it included the 1099, it's just a back compensation settlement not wages. So, you don't have to report it.

To add, honestly I don't even think EDD will figure this out for another years as the settlement is based on a reversal or a reversal from an original modified and stipulated reversed reinstated modified reversed....

[Pan90]

The settlement check did withhold Federal taxes,

and the Door Dash payments/wages we receive never withhold taxes -- it's up to us to file at the end of the year with the 1099s they send us, and we must repay all taxes owed to the government.

I usually report the wages I earn through Door Dash when I certify every 2 weeks. Is this correct to do?

[Pan90]

I revisited UI Online to continue the certification process,
and where it asks, "did you receive any other type of income?" it mentions "backpay" as one of the types of income to mention.

Wouldn't a settlement check (due to wages previously wrongly withheld) be considered backpay?

At this point, I'm still not approved or denied from UI Benefits (it's been 11 days since my eligibility interview),
so if I end up being denied *knock on wood* this wouldn't even matter lol

I still appreciate your thoughts, though Rabrrita.

[Rabrrita]

Since you are still working for Door Dash, the settlement may be considered reportable but I don't think it should be counted against you as wages. The settlement is confusing so I honestly have no idea what they expect and I figure EDD will just make it up as they go.