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L recently filed for SDI but forgot to include 1099 earnings…

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Hi l recently filed for...
Hi l recently filed for SDI but forgot to include 1099 earnings that l received this year. Do l need to report this income ? Will it affect me to revise my claim to include this income? The claim was filed less than 10 days ago.
Submitted: 8 months ago.Category: California Employment Law
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11/19/2017
California Employment Lawyer: socrateaser, Lawyer replied 8 months ago
socrateaser
socrateaser, Lawyer
Category: California Employment Law
Satisfied Customers: 40,075
Experience: Retired
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Hello,

You do not need to report 1099 income with your claim (unless you elected to pay SDI contributions as a self employed individual). However, if you continue to receive income from any of these sources during your disability, and you had to provide services in order to receive that income, then you would be ineligible for SDI, because you are not disabled and unable to perform your customary occupation.

If your 1099 income is passive, i.e., you don't need to do anything to receive the income -- such as from royalties, then you would not be disqualified, because you wouldn't be working for the income.

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Customer reply replied 8 months ago
Ok just to clarify this is additional income on top of a salary job. Can social media marketing be considered passive work ?
Customer reply replied 8 months ago
Also, l read on EDD website that you Are allowed to work as long as your part time income plus your sdi benefits don’t equal more than your wages prior to your disability. My 1099 income is for social media marketing. Can you please clarify what the laws are
California Employment Lawyer: socrateaser, Lawyer replied 8 months ago

There is no such thing as "passive work." If you're working, then you're active, and if you're active, you cannot receive SDI, benefits, except as allowed by Unemp. Ins. Code Section 2656(a) "An individual eligible to receive disability benefits who receives wages or regular wages from his or her employer during the period of his or her disability or period of family care leave shall be paid disability benefits for any seven-day week or partial week in an amount not to exceed his or her maximum weekly amount which together with the wages or regular wages does not exceed his or her weekly wage, exclusive of wages paid for overtime work, immediately prior to the commencement of his or her disability or period of family care leave."

In sum, social media marketing is not a passive activity. You have to provide personal services, and if you do, then you are not disabled. However, as you mention, the law permits you to earn income less than your wages prior to your disability (see above).

I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer (click 3, 4 or 5 stars) -- otherwise, Justanswer retains your entire payment, and I receive nothing for my efforts in your behalf. Note: If you cannot find the rating button on your webpage, please just type in your rating in a response to this note, and customer service will apply the rating for you.

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Customer reply replied 8 months ago
Ok but you failed to mention that altogether in your first response. So again just to make absolutely sure, can l continue to work my 1099 Job (not my full time employment) and collect disability benefits as long as the both amounts combined don’t exceed my previous earnings ? Must l report this income to edd if it does not exceed previous amount? What happens if l do not report this income? Can l be penalized even though income would not affect my rewarded weekly benefit?
California Employment Lawyer: socrateaser, Lawyer replied 8 months ago

can l continue to work my 1099 Job (not my full time employment) and collect disability benefits as long as the both amounts combined don’t exceed my previous earnings ?

A: The answer to this question is unsettled. Self-employment income is not "wages" for disability purposes (but it is for unemployment purposes). Consequently, the legal theory should be that self employment income should not be calculated in determining the amount of disability payment. However, since the issue has never been litigated, and EDD considers self employment income as wages for purposes of reducing disability benefits, my answer to your question here is, "yes."

Must l report this income to edd if it does not exceed previous amount?

A: Yes, unless you want to start a war that will have you tied up in litigation for several years (and, which you may ultimately lose, even though the law appear to be favorable to you).

What happens if l do not report this income? Can l be penalized even though income would not affect my rewarded weekly benefit?

A: You'll be required to reimburse EDD for overpayments. And, yes, you can be penalized for making a false declaration under penalty of perjury.

I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer (click 3, 4 or 5 stars) -- otherwise, Justanswer retains your entire payment, and I receive nothing for my efforts in your behalf. Note: If you cannot find the rating button on your webpage, please just type in your rating in a response to this note, and customer service will apply the rating for you.

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California Employment Lawyer: socrateaser, Lawyer replied 8 months ago

Hello again,

I see that you have reviewed my answer, but that you have not provided a rating. Do you need any further clarification concerning my answer, or is everything satisfactory?

If you need further clarification, concerning this matter, please feel free to ask. If not, I would greatly appreciate a positive feedback rating for my answer (click 3, 4 or 5 stars) – otherwise, Justanswer retains your entire payment, and I receive nothing for my efforts in your behalf. Note: If you cannot find the rating button on your webpage, please just type in your rating in a response to this note, and customer service will apply the rating for you.

Thanks again for using Justanswer!

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