California: UI benefits and piece work over $999 (claim, EDD, state)

[TJ Lazer]

I've been receiving UI benefits in California since last fall when I was laid off from a long-term W2 position (I'm still on my first Benefit Year). I recently did a piece work job where I earned in excess of my Weekly Benefit Amount. My understanding is that earning more in a week than my WBA will cause CA to close my claim.

What is the proper course of action to take in this situation?

- Do I send in a claim form with $999 in the earnings boxes or should I just not mail a form for that time period, which will cause the claim to close?
- Can I re-open my claim later when I'm back to earning nothing (or less than my WBA)?
- If my claim can be re-opened, is it the same claim as when I first filed, or does it get recalculated?
- Can the claim be re-opened via the CA EDD website or do I have to contact EDD by phone to re-open?
- If my claim is re-opened, does it pick up at the week right after the week I out-earned my WBA or does it pick up the week of re-opening?
- If I do piece work in two consecutive weeks but earn less than my WBA in each individual week, will that cause my claim to close?

I've read conflicting information about whether this is a common thing people do when they perform an occasional piece work job that pays more than their WBA. Any advice would be appreciated.

[Ariadne22]

Originally Posted by TJ Lazer

What is the proper course of action to take in this situation?

- Do I send in a claim form with $999 in the earnings boxes or should I just not mail a form for that time period, which will cause the claim to close?
- Can I re-open my claim later when I'm back to earning nothing (or less than my WBA)?
- If my claim can be re-opened, is it the same claim as when I first filed, or does it get recalculated?
- Can the claim be re-opened via the CA EDD website or do I have to contact EDD by phone to re-open?
- If my claim is re-opened, does it pick up at the week right after the week I out-earned my WBA or does it pick up the week of re-opening?
- If I do piece work in two consecutive weeks but earn less than my WBA in each individual week, will that cause my claim to close?

• Return the form, reporting your earnings. The result is the same either way. The claim will close.
• You then call CA to reopen the claim when you know you won't be earning more than 25% of your WBA.
• A reopened claim is the same claim. Nothing is recalculated.
• You need to call CA to reopen the claim. The rep will have questions.
• Claim picks up where you left off. You have a calendar year to exhaust your state benefits. This does not change if you don't claim or are not paid for a week.
• If you work and earn less than WBA each week, report those GROSS earnings on the claim form for the week you work - not when you are paid. CA allows you to keep 25% of your earnings and deducts 75% from the WBA. As long as CA is paying a benefit - even though reduced by earnings - your claim will not close.

[TJ Lazer]

Thanks so much for the response. I have an EDD interview scheduled for this weekend over a form I mailed in late (My forms are slightly behind from having to clear up an improperly filled-out form back in November which caused a delay). Would that be a good time to bring this up, or should I just stick to the topic at hand? I've reported small earnings on previous forms which they've called me about and I was able to clarify. I just want to accurately describe my situation to them so I don't inadvertently raise any red flags.

[Ariadne22]

You can mention it, but you will still have to call to reopen the claim.

[TJ Lazer]

Someone recently pointed me to this article and I'm not sure if this is the right way to go about handling random jobs while on UI. Does the author make any good points here?

http://www.gather.com/viewArticle.ac...81474979130827

[Ariadne22]

So, is your "piecework" self-employment or free-lance?? I assumed you were being paid on W-2 for this. Are you being paid 1099 for this "piece work?"

If you are running a business, working free-lance, are self-employed - you do need to alert CA about these activities - as opposed to jobs you get on a contract or temp basis as an employee. Not each time you get an assignment - but that are you engaging in this type of "work." CA needs to ascertain this "free-lance"/"self-employment" will not interfere with your job searches or accepting full-time work.

[TJ Lazer]

The "piece work" term is just based off advice I read in this article:

http://annemaclachlan.wordpress.com/...not-freelance/

That advice seems to differ from the other article's advice. I'm not exactly sure who's right or what differentiates the two terms. I think the term "freelance" is the one that best describes me. I am definitely not running a business. I'm still unclear as to why one term is supposedly OK while the other raises a red flag. There don't seem to be clear-cut differences.

When I first applied for UI, I indicated that I'd be doing occasional bits of work here and there. An EDD person called me to get more information and they seemed OK with me doing occasional jobs as long as I was actively searching and able to accept full-time work, which I am.

[Ariadne22]

Then, let it go. You've done enough disclosure. Don't overthink this. People work free-lance and off and on all the time. It's not a big deal.

[TJ Lazer]

You're probably right. And to answer your other question, I am being paid 1099 for this work. Is that something that would create an issue? So far, I've been writing the name of the company paying me under Employer on the claim form. Should I be writing "Self-Employed independent contractor" instead?

I've messed up claim forms in the past and I'd just like to avoid any future headaches if possible.

[Ariadne22]

Keep doing what you're doing. Don't bring "self employment" into it. 1099 is not a problem, as long as you report the income. No future UE benefits and/or UE eligibility can be based on 1099 income, however. But many people are working 1099 - very common.