1099 (collect, claim, work, money)

[kim6288]

Can you be a 1099 and collect unemployment?

[Desertdarlene]

Originally Posted by kim6288

Can you be a 1099 and collect unemployment?

It depends on your state. In California, you have to be "pre-approved" before you can report your earnings on your continued claim form, but they don't have a problem with people who are self-employed as long as you're available for work and willing to drop the 1099 work if they're offered a full-time job.

In some states, like NY, it's more complicated and some states don't allow it at all. I would call your UI office and check before starting on a 1099 job if you haven't already.

[7 Wishes]

Not complicated in NY at all:

1) You lose 1/4 of your benefits for every day you work in a given week, be it self-employment or otherwise. A stupid and archaic rule as you can work one hour and NY counts it as a "full day".

2) There's also an "earnings limit" of $405/week to get partial benefits in a given week in NY. However, self-employment income is exempt from this limit. So if you somehow worked only one day in a given week but got $500 for it, you still get 3/4 of your benefits that week.

Just one example of the nuances in each state regarding 1099 income vs. UI.

[Desertdarlene]

In California, you can work everyday and not lose any of your benefits if you are self-employed unless you earn money. However, the only glitch is that you have to be pre-approved to report your earnings. As long as you're still looking for full-time work and willing to drop or reduce the self-employment, it's OK.