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Employment Development Department
Employment Development Department

Total and Partial Unemployment TPU 460.4

Drawing Account

Money received by a claimant on a drawing account is wages and deductible from the weekly benefit amount under Section 1279 of the code. Any such money is wages because it is remuneration for personal services. A drawing account is simply an advance on future commissions or salaries.

To illustrate the above, a claimant is terminated as display manager for a local concern. He continues in the capacity of salesman with the same concern on a part-time basis. The claimant receives a drawing account against possible future sales of $300 per week. The payment is considered wages and the claimant would be considered ineligible under Section 1279.