Unemployment yet working in Colorado (Center: ski resorts, sales, loan)

[chilaili]

Hi,
Does anyone know if it is possible to work at all in Colorado whilst getting unemployment? Is there a limit to how much you can earn in a week or how many hours you can work but still be eligible? If anyone knows, I'd really appreciate hearing from you.

[80skeys]

Originally Posted by chilaili

Hi,
Does anyone know if it is possible to work at all in Colorado whilst getting unemployment? Is there a limit to how much you can earn in a week or how many hours you can work but still be eligible? If anyone knows, I'd really appreciate hearing from you.

You can work, and you have to report the amount of money you earn on your claim form every week. This amount will be deducted from your unemployment benefits. If you make more than the amount of your benefit, then you won't be receiving anything at all from the unemployment office.

[chilaili]

Originally Posted by 80skeys

You can work, and you have to report the amount of money you earn on your claim form every week. This amount will be deducted from your unemployment benefits. If you make more than the amount of your benefit, then you won't be receiving anything at all from the unemployment office.

Okay that makes sense. Thanks.

[pyrotech]

I've got a few friends that did this (and are still doing this) while working for ski resorts this season. They just have to make sure to work a bare minimum of hours, collect unemployment, and make sure any other work they do is cash under the table. It lets them ski a lot in the winter, free season pass for working at the resort, and live on a tighter budget than I did while working my way through school. Best of luck.

[ColoWeb]

Originally Posted by pyrotech

make sure any other work they do is cash under the table.

Well that's very legal and honest. Kudos and thanks to the taxpayers! /sarcasm .

Hope they realize that not only will they have to pay back any unemployment benefits if (when) this is discovered but they are also committing felony tax fraud since I doubt they report this income in their taxes.

Even if the employer is paying under the table by not issuing a W2, I am sure the employer wants to deduct the amounts paid from their taxes. That's when IRS tracks down where did the money go, even if it is not on a W2.

[DOUBLE H]

I worked power plant construction for nearly three decades and drew my share of unemployment between assignments and weather and seasonal slowdowns. Been many years since I did but assuming the laws haven't changed, I believe you can make 25% of your weekly benefit amount without being penalized. In other words, if your weekly benefit amount for unemployment is $300 for the week, you can make $75 for that same week and not be penalized. That's $75 in gross wages for the week. As far as the Job Service Center people are concerned, they encouraged people to try to pick up part time work so you could stretch out your yearly benefit amount over a longer period of time. When I drew it was only for 26 weeks though, so it would be to my advantage to try to work a day or two a week if I knew my employer wasn't going to call me back right away. Now this is how it was years back, if the laws have changed someone please correct me!

[pyrotech]

Originally Posted by ColoWeb

Well that's very legal and honest. Kudos and thanks to the taxpayers! /sarcasm .

Your tax dollars don't pay them. Their previous employer's tax dollars do, along with other employers' unemployment taxes, not yours.

Originally Posted by ColoWeb

Hope they realize that not only will they have to pay back any unemployment benefits if (when) this is discovered but they are also committing felony tax fraud since I doubt they report this income in their taxes.

I'm quite sure they don't care.

Originally Posted by ColoWeb

Even if the employer is paying under the table by not issuing a W2, I am sure the employer wants to deduct the amounts paid from their taxes. That's when IRS tracks down where did the money go, even if it is not on a W2.

I'm pretty sure if the employer is paying them cash under the table, they won't be trying to pay taxes for them. Is this really the first you've ever heard of people doing this?

[ColoWeb]

Originally Posted by pyrotech

Your tax dollars don't pay them. Their previous employer's tax dollars do, along with other employers' unemployment taxes, not yours.

Yes they do. Given the large unemployment rate, these funds have dried up long ago. I believe in Dec. 2009 they were saying that they have only few weeks worth of money left the rest is taxpayers money and/or loan funds from the Fed., which will be paid back by ... you and me via taxes. And yes, State of Colorado increased the rate/amount each business must pay into the unemployment fund, it is still does not add up to cover all of the funds that need to be paid out. In fact, business had to lay people off because they had to pay extra into those funds (Ch. 7 or 9 did an interesting story on this within the last 4-8 months).

I'm quite sure they don't care.

That we can agree on. However, they may care when IRS comes down to them on felony tax fraud. You will not believe how advanced and "intelligent" IRS's racking mechanisms/computers/systems are. Remember, while IRS has '7 years' to review one's taxes they have a lifetime to review fraud which is not subject to the '7 year rule.'

I'm pretty sure if the employer is paying them cash under the table, they won't be trying to pay taxes for them. Is this really the first you've ever heard of people doing this?

I know the employer is not paying the taxes for the employee. What I meant was that the employer is deducting these funds FROM paying any taxes on them as deducible 'expense' for keeping employees/contractors.

For example, the employer has X in their bank account or prepossessed in sales but reports Y as the taxable amount to the IRS. The difference is what the IRS may go after. I am sure the employer does not report these expanses as taxable income; I am sure they are 'writing it off'. And even if it is not a W2, IRS will track it down to see where did the money go.