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My question pertains to my UI in NY, though I presently work in CA upstate. I was on UI for 3 months and found full time 1099 independent contract work last month, which is when I simply stopped claiming weekly benefits. Now, the company has cut our hours to part time (3 days) weekly. I do not make over NY's total aggregate limit, and wish to resume claiming PT Benefits.
When I go online to do so it pulls up a BREAK IN CLAIM FORM -- first question is "Was your work related to Self Employment?" I selected yes and it takes me right to the claim form as usual. When I selected no, it asks for all my present employer info.
My questions are:
1) will my current claim benefits automatically resume if I report self employment and loss of full time?
I know those who do self employment INITIALLY have a hard time qualifying for UI but I read that if you have a current claim and take a 1099/SELF ELPLOYMENT job it is different.
2). If I selected to enter my employer info, would that mean the new employer has to start paying my benefits due to lack of work, or does the initial employer resume paying them for the remainder of claim?
Thank you for any and all assistance you may offer !
You're dealing with NY. They have stricter selfemployment standards. Generally, UI is not available to the self employed nor those that join the ranks of the self employed.
Are you REALLY self employed? Was this something you set out to do, or was it the only job you could find? Truth is many people that are "contractors," are truly employees.
With your employer cutting you to 3 days per week, with NY's formula, you'll only get 25% of your former UI check.
It shouldn't matter to you what employer pays your claim. Chances are even if you treat this as "employment," your former employer's reserve account will take the hit.
Ah, makes sense. Well here is what's odd. We filled out a W2 NOT a 1099 now that I look back at the papers. However they have not once taken taxes from my check over the past month or so. . Which is why I thoight I had done a 1099.
So my best bet is to list them as an employer ? And just continue claiming PT BENEFITS?
I plan on claiming tonight so I want to ensure I do this correctly to expedite it. Will I have to serve another waiting week or will payments resume ?
So my best bet is to list them as an employer ? And just continue claiming PT BENEFITS?
Depends on what you want. There is a risk that this employer will be so incensed by what you're doing that they'll fire you over it. NY will send them paperwork asking about why your hours were reduced. If they say, "the employee asked for less hours," then that would be disqualifying. NY will not take your word that this reduction has nothing to do with anything that you wanted to happen.
To me, any job that pays less than UI is NOT worth having so I wouldn't care, but you might.
Quote:
Originally Posted by Zumpa
Will I have to serve another waiting week or will payments resume?
It's one waiting week per benefit year. Based on what you've said, I'm going to say, "no," because your claim is only 4 months old and you should have 6 months left to collect money on it.
So if I lost it as self employment, then what ? Could go either way ? Will they resume payments since my hours were reduced or how will that play out ?
Well it is very confusing given they have not removed taxes from my check. So if I list it as SELF employment do they just call me instead of any potential employer ? Or just resume the claim
No, it is not a confusing fiasco. 1099 contract work is not automatically synonymous with self-employment - especially if your hours and work performed were dictated by your employer.
NY is accustomed to contract work which is often paid on 1099 and is not self-employment per se. Per NY handbook - please read carefully:
Quote:
My employer paid me as an independent contractor and/or paid me off the books. What do I do?
It is against the law for any employer to force you to give up your rights to file for Unemployment Insurance benefits. No employer should tell you that you cannot claim benefits. Everyone has a right to file a claim. The Department of Labor alone will decide if you are eligible for benefits. It does not matter whether your employer considered you an independent contractor or an off-the-books worker. It does not matter whether you were paid in cash, check, part cash/part check or otherwise. You should always file for benefits when you become unemployed.
Most employers obey the law and properly classify their employees.
However, some employers may classify you as an independent contractor when you should be classified as an employee.
Sometimes they may not tell you they are doing this.
An employer may want to classify a worker as an independent contractor or pay them off the books to avoid obeying laws that protect workers and provide benefits, such as Unemployment Insurance.
Employers who misclassify workers as independent contractors or pay them off the books deprive workers of important protections. They also may be committing fraud. Businesses that disobey the law also put businesses that obey the law at an unfair competitive disadvantage.
If you have been misclassified as an independent contractor or paid off the books, your wages may not appear on your Monetary Benefit Determination form. Please see page 9: “If wages and/or employers are missing from your Monetary Benefit Determination notice.” You should complete and return the “Request for Reconsideration” form found at the back of this handbook.
If you know of other workers who have been misclassified, call the Employer Fraud Hotline at 1-866-435-1499 (24-hours) or the Unemployment Insurance Fraud Unit at 1-518-485-2144 from 8 AM to 4 PM. We will keep your information private and you can remain anonymous.
If you continue to work three days a week for this employer - whether on 1099 or W-2 - NY will only pay you a day's benefits. In NY, one hour a day = a day's work.
Unless you are REALLY working as a self-employed individual without supervision of any kind, do not report this work as self-employment, because it isn't. Just report days worked.
NY will investigate why you are reopening the claim, will ask about this 1099 work. Unless you are, in fact, functioning totally independent from that employer, you are not self-employed - no matter you are being paid on 1099.
Further, when your current claim expires, if this employer is fraudulently paying you on 1099, those 1099 wages can be reclassified to qualify as insured wages and will be recognized as new earnings. The fact that you have worked in your first benefit year, qualifies you for a new claim at your benefit year-end, provided the wages are insured. You would need to request this wage reclassification.
Last edited by Ariadne22; 01-03-2015 at 12:57 PM..
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