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Employment Development Department

Unemployment Insurance

Frequently Asked Questions (FAQs)

You may access our FAQs using the following methods:
Payments
1. When can UI benefits be paid? Benefits are paid after a claim has been filed and all eligibility requirements have been met. To be entitled to benefits an individual must be:
  • Out of work due to no fault of their own
  • Physically able to work
  • Actively seeking work
  • Ready to accept work
2. How are payments made? Payments are made using a Continued Claim Certification, DE 4581. Claimants complete this certification and mail it to EDD every two weeks. If all eligibility requirements are met a check is mailed to the claimant. Attached to the check is a certification for the next two weeks.
3. Are claimants required to pay taxes on UI benefits? Yes, the Federal Tax Reform Act of 1986 provides for federal taxation on UI benefits. Claimants may voluntarily request that EDD withhold 10% of weekly benefits for federal taxation of UI benefits. This voluntary withholding request is contained in question seven on the Continued Claim Certification, DE 4581. The voluntary withholding request must be made each week that the claimant wishes to have federal taxes withheld from benefits.
4. How does severance pay affect my eligibility to receive unemployment insurance benefits? Severance pay is not deducted from unemployment insurance benefits and does not affect your eligibility to receive benefits. The method of payment, such as a lump sum payment or payments paid to you at regular pay period intervals does not change the nature of the payment. However, you must report severance pay at the time you file your unemployment insurance claim.
5. How does in-lieu-of-notice pay affect my eligibility to receive unemployment insurance benefits? In-lieu-of-notice pay is deducted from unemployment insurance benefits. A payment is generally considered to be in-lieu-of-notice pay if an employer has a plan or policy that provides for advance notice of a layoff or payment when no notice is given.

The Department will allocate your in-lieu-of-notice pay to the notice period. If appropriate, we will deduct the pay from your benefits if you are claiming benefits during the notice period.
6. How does vacation pay and holiday pay affect my eligibility to receive unemployment insurance benefits? Vacation pay or holiday may be deducted from your benefits. It will depend on whether or not you have been given a definite date to return to work at the time you were placed on layoff status:
  • If you are not given a definite date to return to work, any vacation pay or holiday pay paid to you when your job ends is not deducted from your weekly benefit amount.
  • If you are given a definite date to return to work, any vacation or holiday pay for the period of the temporary layoff is deductible from your benefits. The Department will allocate vacation and holiday pay as follows:
    • Vacation pay will be allocated to the number of days you requested vacation or to the number of days your employer required you to use as vacation during the temporary layoff.
    • Holiday pay that is paid before you return to work will be allocated to the week(s) in which the holiday(s) fall. Holiday pay that is paid after you return to work will be allocated to the week that you return to work.
7. How can I get a copy of my UI records? Call EDD and request a copy of your claim records. We will mail a paper copy of the requested information to you within 10 business days. You may also submit your request on-line thru Contact Us on the Ask EDD page.
8. How do I report an address change or telephone number change on my UI claim? You can report an address or telephone number change using three methods:
  1. On the bi-weekly certification, Continued Claim Form, DE 4581, mark the box on question 8, and complete Section D on the reverse side of the form.

  2. You can also report an address change or telephone number change by telephone. Contact EDD and we will change your address or telephone number while you're on the telephone. To protect your privacy, be prepared to provide claim verification information.

  3. Write us a letter and include the following information:
    • Your name
    • Social security account number
    • New address and/or telephone number
    • Your signature
    Mail the letter to:
    NorCal Authorization Center
    PO Box 269017
    Sacramento, CA 95826    		   OR   SoCal Authorization Center
    PO Box 19010
    San Bernardino, CA 92423
9. Where is my UI check? Benefit check information is available using our automated telephone system and you will need a Personal Identification Number (PIN) to access your information. You create your PIN using the automated telephone system.

Check information is available Monday through Saturday from 6:00 a.m. to midnight and Sunday from 6:00 a.m. to 9:00 p.m. (All times are Pacific Time.)

If you have not received your check or any response from EDD within 10 days of mailing your Continued Claim Form, DE 4581, contact EDD. Also contact EDD immediately if you lose your check.
10. Can I leave my Continued Claim Form, DE 4581 at any EDD site? Leaving your DE 4581 at an EDD site will delay your payment. This happens because the form will have to be sent to the appropriate EDD site for payment which will add an additional one to three days to the mailing time.

Mail your DE 4581 using the envelope provided. It is the fastest and easiest way to receive your benefit check.
11. I lost or did not receive my bi-weekly certification, Continued Claim Form, DE 4581. What should I do? Contact EDD
12. I just received a Notice of Overpayment, DE 1444. Can someone explain it to me? A Notice of Overpayment is mailed to claimants who have been paid benefits they were not eligible to receive. The notice shows the amount of overpayment and penalties, if any. In addition, the notice explains why you were overpaid and provides information about your appeal rights.

Contact EDD for a more complete explanation.
13. What are residual payments? Residual payments are additional payments made to an individual for the reuse or resale of recorded material. The Department considers residual payments to be wages since they are compensation for personal services. Some other terms used for this type of payment are use, reuse and rerun payments or fees.

Individuals may receive residual payments for recorded material such as:
  • television programs or commercials
  • films
  • video disks
  • video tapes
  • phonograph records
  • audio tapes
  • audio disks
14. What are holding fees? Holding fees are payments made to an individual with respect to the filming of a commercial. It is separate from the compensation paid for the hours or days of actual work performance. Holding fees are usually paid at the beginning of each cycle during which the commercial will be used.

The Department considers holding fees to be wages since they are compensation for personal services.
15. How do I report residual payments or holding fees to EDD? If you are claiming unemployment insurance benefits, you must report residual payments or holding fees on your bi-weekly Continued Claim Form, DE 4581. Provide the following information on the DE 4581 or attach a separate sheet of paper to the form:
  1. Name and address of the employer who paid the payment/fee


  2. Gross amount of the payment/fee before any deductions


  3. Type of payment - such as "residual payment," "reuse fees," or "holding fees


  4. Date you received the payment/fee
16. When do I report residual payments or holding fees to the Department? You must report the residual payment or holding fee when you receive the payment. We consider the payment/fee to have been received by you during the week in which one of the following occurs:
  1. The payment/fee is personally given to you.


  2. Your talent agent, union, etc. notifies you (verbally or in writing that a payment/fee has been paid to you.


  3. The payment/fee is deposited or credited to your account in a financial institution.


  4. The payment/fee is delivered to your home or mailing address.


  5. The payment/fee is delivered to your business manager, accountant, or any other person you have designated to handle your financial affairs, or you have authorized to retain or use the payment/fee to pay your financial obligations.
To learn more about the unemployment insurance law concerning residual payments and holding fees, review the Benefit Determination Guide.

Please remember that failure to report residual payments or holding fees when received may result in an overpayment. You can be held financially responsible for such overpayments.

Please contact EDD if you need help with reporting residual payments or holding fees.
17. Why is my State income tax refund check being taken by EDD to repay an overpayment? A UI claim was filed and benefits paid using your social security number. Benefits should not have been paid and an overpayment occurred. The income tax refund is being taken to repay this overpayment. If you did not file a UI claim contact the Department immediately. A fraudulent UI claim may have been filed using your identity information.

Contact your local California Employment Development Department office.

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