<prompt> Human: Hello everyone!Thanks for taking the time to read my message, Im in need of help as its a time sensitive matter and I cant seem to find help through the California Employment Development Department EDD I swear I can never get a hold of anyone via phone or email so Im hoping my Reddit pals might have an idea?I received a letter of Potential Overpayment 30 Penalty after being audited for being let go of job recently and applied for Unemployment UI for the 2nd time. I really hate dealing with EDD as clearly my past experience is now haunting me...Now lets go back to where it all started...I was laid off at Hallmark in March 2013, I was the store lead 3440 hour weeks plus I had a small gig at AKM once or twice a week loved the job, commission hourly and free stuff!.I claimed for unemployment UI after my lay off with Hallmark they closed and let me go and continued my small gig at AKM while getting unemployment, when I was receiving my claim forms, I was always submitting yes to working at a 2nd job lets be real, they would know if I was lying so theres no way I would even try.Because my claims would be coming quicker than my actual pay check through AKM, I would go into my time card at work and write the hours I worked, multiply it by my base pay and write what I earned for those weeks.As mentioned before, it was also commission on top of hourly so I was never sure exactly how much I would be receiving. I looked online for help and with my first time being on unemployment at the age of 21, I had NO clue what to do!I was getting mixed feedback that commission takes a while to determine depending on sales, etc...so it would conflict with adding it onto your claim forms for an accurate amount.No reps locally or on the phone were there for assistance so I trying to figure this out, I continued reading online that commission is still considered a wage, I had not reported this wage to EDD after I had come across more articles talking about Hourly reporting plus commission with the EDD.I understand due to my negligence that the received letter is true in over payment for the small portion of the commission that hadnt been reported and am more than willing to set up a payment to bring current, my biggest concern is however...I was also making contributions to my 401k plus additional donations to non-profits through my AKM paycheck PRIOR to it being taxed. It was all through my company and they were offering matching to my 401k so Ive contributed since day 1. All deductions were made after gross pay and even on my Paystubs, the amounts contributed were deducted from the GROSS amount and then those were considered taxable income.AKM provided EDD all of my pay stubs for the SHORT period I was on UI Feb. 2013-June 2013. EDD just decided whatever amount was displayed on the Gross pay, they would go off of that and possibly didnt see contributions I was making to my 401k donations to St. Jude and Camp Soaring Eagle.My question is this, EDD is including my 401k donations as wages I earned and used to livespend and is considering those to be paid back as well for over payment.Is that possible at all?Are 401 k contributions donations with proof considered an income for me to pay them back?Thank you to anyone that can offer any advice, I am usually slow at responding but I promise to do my best and reply if I get any responses back!Thanks again!Sincerely,Greg UPDATE 102 - 10:15PM I appreciate everyones help and am so glad to get everyones input. However there seems to be some confusion that I want to clear up so I will try to be thorough as possible or maybe I am the one not getting it? : I dont know how to use italicize on reddit so I will just use CAPS, I swear I dont mean it in a meanloud way I was employed through AKM Sept. 2009 - Dec. 2014. I only worked twice a week at most, made 9 an hour and since day 1 after my probation period had ended with the company 90 days I started automatic contributions to my 401K THROUGH AKM.My gross pay was normally 180, I contributed 25 to 401K with every paycheck and with after taxes, I was left with about 90-120 a month.I then started working for HALLMARK from March 2012 to June 2013, I worked there an average of 36 hours a week for 10 an hour. My paychecks monthly were around 1,440 gross pay.When I was laid off at HALLMARK, I filed for unemployment FOR Hallmark and NOT AKM. I was STILL employed with my lousy twice a week job that I wasnt getting much out of anyways and EDD KNEW I had a 2nd job.They said I am eligible for EDD because the amount I was used to making from Hallmark was nowhere near what I get at AKM, I was still eligible for EDD, just not that much.My contributions were being deducted from while WORKING at AKM, I was NOT using money from unemployment to contribute to charities OR my 401K as most people seem to be getting confused with.I apologize for the confusion and shouldve been more thorough with my explanation, I hope that can clear things up.I have contacted EDD via letter now twice, both with tracking numbers explaining my end and was able to reach a local friend who says to try a phone trick on Monday to get a hold of a rep. I will update everyone on this status as well when I get more info, you guys dont know how grateful I am for all the help.Again, Ive realized Ive made a mistake by under reporting and anticipate to resolve this issue with paying back my dues. I would never intentionally try to steal or commit any form of fraud, out of my own ignorance Ive got to pay the price, literally. Thank you all again and please enjoy your weekend and always, be safe! :  <response>: EDD is correct. Wages for the purposes of unemployment is gross pay, not taxable pay. You were under reporting your income all this time. 