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So, I did a bit of business brokering in 2010 and likely will be 1099ed. I probably netted less than $2k for those efforts. Anyhow, my benefits terminated 2-weeks ago and I called the unemployment office about the extension. They asked me a series of questions, including employers for '10. I claimed the additional monies that I earned, but was told that if the working relationship was 1099, I will not qualify for extended benefits. Does this sound correct? If the employer W2ed me, would that make a difference?
Seems rather unfair for those of us that are honestly trying to make some additional money, that contract work would disqualify us from future benefits.
So, I did a bit of business brokering in 2010 and likely will be 1099ed. I probably netted less than $2k for those efforts. Anyhow, my benefits terminated 2-weeks ago and I called the unemployment office about the extension. They asked me a series of questions, including employers for '10. I claimed the additional monies that I earned, but was told that if the working relationship was 1099, I will not qualify for extended benefits. Does this sound correct? If the employer W2ed me, would that make a difference?
Seems rather unfair for those of us that are honestly trying to make some additional money, that contract work would disqualify us from future benefits.
If the employer W2s you, he needs to pay UI tax on those wages and Social Security/Medicare, so you are costing that employer at least 8% more if you are paid on W2. Many temp jobs are contract work for just that reason. The advantage to contract work for anyone already collecting unemployment is that those benefits do not qualify for a new benefit year and, thus, do not affect their present weekly benefit rate or their ability to continue on their original claim. In the past, prior to HR4213, new claims often resulted in a severely reduced weekly benefit rate which needed to be exhausted before the claimant could continue on his old benefits.
Of course, the claimant needs to report those earnings and receives a partial benefit payment from UE but, again, those wages do not affect the underlying claim.
What is the status of your old claim, if any? When did it begin, how much were you qualified for? Why did you stop claiming? Even with contract work, you can receive a partial benefit. You should be able to resume collecting on the earlier claim unless it was very limited from the start because of low earnings.
The advantage to contract work for anyone already collecting unemployment is that those benefits do not qualify for a new benefit year and, thus, do not affect their present weekly benefit rate or their ability to continue on their original claim. In the past, prior to HR4213, new claims often resulted in a severely reduced weekly benefit rate which needed to be exhausted before the claimant could continue on his old benefits.
Per your response above, is this universal? Like you mentioned, I strongly presume that I'll be receiving a 1099, but the unemployment rep claimed that the 1099 relationship would effect my ability to file an extension.
What is the status of your old claim, if any? Hopeful to receive the last claim of this cycle.
When did it begin, how much were you qualified for? I believe this would be tier 3
Why did you stop claiming? Even with contract work, you can receive a partial benefit. I didn't stop collecting, but was told that I needed to submit additional information for clarification...presumably for the extension and not current tier?
You should be able to resume collecting on the earlier claim unless it was very limited from the start because of low earnings. No, received the maximum amount for PA.
Per your response above, is this universal? Like you mentioned, I strongly presume that I'll be receiving a 1099, but the unemployment rep claimed that the 1099 relationship would effect my ability to file an extension.
Yes, it is universal. 1099 wages are NOT UI insured wages. Therefore, these earnings do not allow you to open a new claim or affect your eligibility to continue on an old claim. You got a wrong answer, here. Call again and talk to another agent.
What is the status of your old claim, if any? Hopeful to receive the last claim of this cycle.
Do you mean what remains of your Tier III?
When did it begin, how much were you qualified for? I believe this would be tier 3.
You should be able to move to Tier IV, and then EB.
Why did you stop claiming? Even with contract work, you can receive a partial benefit. I didn't stop collecting, but was told that I needed to submit additional information for clarification...presumably for the extension and not current tier?
Sounds like they need more info on the 1099 work. Those earnings should have been reported as you earned them, not when you got paid, and your weekly benefit immediately reduced accordingly.
You should be able to resume collecting on the earlier claim unless it was very limited from the start because of low earnings. No, received the maximum amount for PA.
In short, you got a wrong answer on the 1099 affecting your ability to continue on your old claim. Keep calling PA until you get someone who knows something. If all else fails, you will need to appeal the decision if you are not allowed to continue on the tiers and EB, since you say you are qualified for the "maximum amount." Sounds like the agent was trying to establish a new claim year for you based on those earnings. Since you had no qualified earnings, you are not eligible for a new claim, your old claim is reopened and you continue on the tiers and EB.
Whoever you spoke to is confused. Again, a very common occurrence.
Last edited by Ariadne22; 12-24-2010 at 01:15 PM..
Is there any issue if I didn't do the work? I think they were questioning whether I was self-employed? Again, this contract work was only 5 or 6 x during 2010 and I likely netted less than $2k in total. There was a bit of confusion about the claim date -- typically I wouldn't get paid for 30 to 45 days and based on the contractor who performed the work, I wasn't immediately sure of my cut -- , but hopefully that's no enough to bump me off of the rolls.
Presuming this issue is resolved, I'll be more rigid...and educated, in 2011.
I'm not lawyer, but it seems to me that if I get 1099'ed every month for ten years, and then the business I'm contracting with terminates it's relationship with me, I will be laughed at if I try to file a claim for unemployment, because I did not pay into Unemployment Compensation with those earniings. Therefore, if I qualify for unemployment compensation as a result of having been laid off from a regular W2 wage-paying job, I consider it none of the Gubmint's business if I earn some money via a 1099.
my employer was suppose to take out all taxes but didn't then gave me a 1099 and laid me off a week leter with a Letter of Recomendation. I have a hearing for Unemployment what do I need to prove it?
My husband has worked for his current employer for almost a yr. This is his regular job. Not a temp job. He will get a 1099 form come tax season. Over this last week my husband and his employer have had a disagreement and it's a distinct possibility that his employer will terminate him. In that case, will my husband be able to file for unemployment?
My husband has worked for his current employer for almost a yr. This is his regular job. Not a temp job. He will get a 1099 form come tax season. Over this last week my husband and his employer have had a disagreement and it's a distinct possibility that his employer will terminate him. In that case, will my husband be able to file for unemployment?
Was he a true independent contractor or just a incorrectly classified employee?
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