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Old 02-21-2010, 02:10 PM
 
6 posts, read 23,443 times
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I have another question that wasn't answered as clearly as I liked at my local office. It seemed no one at the local office could answer the question easily for the rep I was meeting with. Here is the question. While drawing UI is it possible to set up a small business without automatically making yourself ineligible for UI. I would like to try and start drumming up some business on my own, but if I did I would want to do it the right way by setting up an LLC and being insured so I wouldn't risk my personal assets. The answer I got at my local office was a) if I do I will be ineligible or b) do it under the table. By setting up a company it doesn't mean that there would be any cash flow for sometime possibly. I don't see how it would be any different than working part-time for someone else as long as you were still fulfilling the requirement of actively searching for full-time work, which I would do unless business took off. So are there any written rules anywhere that I can actually read that a) gives clear instructions on doing so, or b) tells me I cannot do it. The way I look at it is if it is not allowed it really discourages people to take a chance to be self sufficient. I came from a construction management job, and I just don't see any luck with getting a job with someone else in this field anytime soon. If I was able to start a business while collecting UI, I may be able to get a business going that could support myself and my family, and maybe eventually employee others that are currently collecting UI.
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Old 02-21-2010, 02:11 PM
 
Location: Boone, NC
1,166 posts, read 3,437,527 times
Reputation: 314
Quote:
Originally Posted by nc194287 View Post
I have just finished up my second year UI of benefits, do not qualify for any extensions in the second year, so I should qualify for pull forward Tier 3 correct? When I went to file today I got the message,

"Your claim for the week of 2/20/2010 has been accepted but cannot be processed for payment because your claim is monetarily ineligible. If you need further information, please call the Remote Service Center at 1-888-737-0259"

Does this mean I am not a pull forward, or is this a standard message and the system will automatically pull forward money from last year? Is there something else I need to do to get this pull forward money triggered? Thanks. Michael
You need to contact someone because they temporarily stopped the pull forwards to complete the 14th week programming. But now that that's done, they'll be working on the Tier 4. But I'd think they'd resume the pull forwards until they're ready to implement the Tier 4. Someone would be able to let you know what's going on with your claim relative to the message you received. And that way, you'd get your situation in front of someone instead of waiting for it to be discovered.

As long as you've exhausted Tier 2, whether in your previous or current benefit year, you'd be eligible for Tier 3. And yes, they'd pull forward any unused EUC from your previous benefit year if you're not eligible for EUC in your new benefit year.
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Old 02-21-2010, 02:12 PM
 
Location: Boone, NC
1,166 posts, read 3,437,527 times
Reputation: 314
[quote=greenpoochie;12993415]
Quote:
Originally Posted by jdljr View Post
It should, I believe, if nothing else has changed with your status (last employer).[/quote

Would I have to be able to file a weekly certification in order to receive week 14? I did reopen my claim as the ESC website requested and it is saying that they have my claim on file.
This is one of those things I am not certain about...generally you have to certify each week, yes, but recently when they implemented the 14th week, payments automatically occurred for people. So not sure if yours will or not. Best to call and find out.
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Old 02-21-2010, 02:24 PM
 
Location: Boone, NC
1,166 posts, read 3,437,527 times
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Quote:
Originally Posted by oakleyguy007 View Post
I'm pretty confused about this. I don't know what a base year is. I was in the Army for 5 years and to make it more complicated I was deployed for the 15 months before I got out, making the taxes complicated. I wasn't kicked out, I was a sergeant when I got out. But I didn't reenlist because my legs can't handle it anymore. I'm still waiting on the VA to go through my disability paperwork.

I don't know what tier I was in or anything like that. I did receive 12 months and reapplied for a new year in benefits, and waited another week before I could file again.

I've been more concerned about finding a job than I have been milking the government. I wouldn't be so concerned about this if I were single, but I'm married with a 2 month old daughter. I can go hungry but they can't.
A benefit year is a 52-week period of time that elapses from the date you open your claim. Claims are valid for this time period. After that, they end regardless of whether you still have unemployment money left. At that time, you have to open another benefit year. As you confirmed and I expected, you're in your 2nd benefit year.

All claims are based off of a base period. That base period depends on at what point during the year your claim is filed. Base periods change each quarter. Right now the base period is 4Q2008, 1Q2009, 2Q2009 and 3Q2009. When you filed your claim it was something different. It's normally the first four of the last 5 completed calendar quarters, but does not include the current quarter we're in. The base period will change April 4th. At that time, the 4Q2008 will drop off and we'll pick up 4Q2009.

Someone must have at least $4,550 spanning at least two of those quarters in order to be eligible to draw unemployment. You had that, no problem, each of your benefit years as evidenced by the fact that you drew regular UI each time.

To be eligilble for extensions there is another monetary formula you must meet, which I mentioned before...the 1.5x rule. If you're not eligible for extensions in your first benefit year, you're not eligible. If you do get extensions in your first benefit year, but you're not eligible for them in your second benefit year but you still had leftover extension money available in the first benefit year that ended, they'll bring that unused extension money into your second benefit year for you to draw out.

I would recommend you visit your local office and speak with the Vet Rep there. He will be able to provide information about services that may be available to you because you're a Vet.
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Old 02-21-2010, 02:48 PM
 
Location: Boone, NC
1,166 posts, read 3,437,527 times
Reputation: 314
Quote:
Originally Posted by ml2007 View Post
I have another question that wasn't answered as clearly as I liked at my local office. It seemed no one at the local office could answer the question easily for the rep I was meeting with. Here is the question. While drawing UI is it possible to set up a small business without automatically making yourself ineligible for UI. I would like to try and start drumming up some business on my own, but if I did I would want to do it the right way by setting up an LLC and being insured so I wouldn't risk my personal assets. The answer I got at my local office was a) if I do I will be ineligible or b) do it under the table. By setting up a company it doesn't mean that there would be any cash flow for sometime possibly. I don't see how it would be any different than working part-time for someone else as long as you were still fulfilling the requirement of actively searching for full-time work, which I would do unless business took off. So are there any written rules anywhere that I can actually read that a) gives clear instructions on doing so, or b) tells me I cannot do it. The way I look at it is if it is not allowed it really discourages people to take a chance to be self sufficient. I came from a construction management job, and I just don't see any luck with getting a job with someone else in this field anytime soon. If I was able to start a business while collecting UI, I may be able to get a business going that could support myself and my family, and maybe eventually employee others that are currently collecting UI.
Basically, if you're self-employed you're not unemployed (you're employed). However, if that self-employment is not making you any money in wages and you need to re-open a UI claim, you'd need to let the ESC know. Self-employment, unless you are incorporated and contributing to the UI fund, is not considered covered wages and, therefore, you're not covered by UI. However, if you have wages in the base period from other employment that would qualify you to receive UI, you may still be able to collect. At the time your claim was filed or re-opened, the consultant would likely need to do what we call a "self-employed vs unemployed" fact finding. An issue would be set on the claim until it was resolved. Then the issue has to be ruled upon to determine if you're really unemployed or really self-employed, and eligible for UI.

I had a lady at my desk the other day who operates and distributes the local "for sale by owner" publication. She states that she has not had any wages from that for quite sometime, so she took a full-time job to supplement her self-employment. Well, that full-time job just laid her off. She is still self-employed, but is not making any money. So I've scheduled her to come in and file a claim, but we're going to have to do that "self-employed vs unemployed" fact finding when she comes in. She has covered wages in her base period from her supplemental full-time job. But she's still primarily self-employed.

You are, of course, required to be able and available and seeking full time employment if you're continuing to certify for UI each week. I don't believe that the steps to starting your own business can be considered to satisfy the requirements to receive UI. You would need to look for work, or stop UI. Should full-time employment be offered to you, you'd have to take it, or risk losing your benefits if you refused a job.

I won't say my answers are 100% correct. Self-employment and UI is kind of a tricky thing and it's not something we deal with a lot because most individuals who are self-employed do not contribute to the UI fund, so they're not eligible for UI. I wish I knew more about it.
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Old 02-21-2010, 06:32 PM
 
31 posts, read 89,496 times
Reputation: 11
for Jdljr

If you receive a severence pay in a lump sum can you collect unemployment when you have been laid off ? if so right away or after so many weeks? Thank you
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Old 02-21-2010, 06:57 PM
 
Location: Boone, NC
1,166 posts, read 3,437,527 times
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Quote:
Originally Posted by kap1 View Post
for Jdljr

If you receive a severence pay in a lump sum can you collect unemployment when you have been laid off ? if so right away or after so many weeks? Thank you
SEVERANCE pay is no longer reportable when filing for unemployment. This change was effective in October, 2009. You can file for your unemployment without regards to the severance.

Now, if it is SEPARATION pay (vacation, bonus, etc.), that must still be reported, and you would be ineligible for unemployment for as long as the period that the separation pay covers.
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Old 02-21-2010, 06:57 PM
 
4 posts, read 9,121 times
Reputation: 10
I have read most of these pages but I am unclear of one thing...I began receiving my initial claim UI in Sept 2009...that is getting ready to run out...is my base period the base period when I filed the initial claim or will my base period for determining the 1.5 times be the quarters in effect now? Reason I ask is that my employer paid me my stock options in the last quarter I was employed which would be included if the base period was starting today...??
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Old 02-21-2010, 07:03 PM
 
Location: Boone, NC
1,166 posts, read 3,437,527 times
Reputation: 314
Quote:
Originally Posted by castlegate View Post
I have read most of these pages but I am unclear of one thing...I began receiving my initial claim UI in Sept 2009...that is getting ready to run out...is my base period the base period when I filed the initial claim or will my base period for determining the 1.5 times be the quarters in effect now? Reason I ask is that my employer paid me my stock options in the last quarter I was employed which would be included if the base period was starting today...??
Eligibility for regular UI and extensions is determined using the base period that was in effect when you filed your claim. IOW, whatever base period was used to file your claim is the same base period that is used to determine eligibility for extensions. Base periods are the first four of the last five completed calendar quarters. So, for example, if you filed your claim in Sept 2009, the regular base period would be 2Q2008, 3Q2008, 4Q2008 and 1Q2009. If you can't qualify for a claim during the regular base period, an alternate base period can be used (include the last completed quarter, but drop the furthest quarter in the base period). The quarter in which the claim is filed can never be used as part of the base period.

Last edited by jdljr; 02-21-2010 at 07:13 PM..
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Old 02-21-2010, 07:13 PM
 
4 posts, read 9,121 times
Reputation: 10
jdljr

Thank you! And I filed my claim in August 2009 (althought it didnt begin until Sept 2009 because of severance) so my base period would not include second or third quarter 2009? correct?

Thank you again...I am hoping I have a job offer coming tomorrow but I still feel better knowing I should be eligible for extenstion if needed.
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