Unemployment and part-time/contract work (CA) (collecting, extension, file, claim)

[kess9532]

Hi -- I have several questions that I hope someone can answer!

FYI, I reviewed these two threads that were pertinent:

//www.city-data.com/forum/unemp...part-time.html

//www.city-data.com/forum/unemp...ornia-edd.html

My situation:

I became unemployed in Aug 2011, and have been collecting benefits at the rate of $450/week since Sept. I'm currently on my 1st extension, after my state benefits ran out. Last week I interviewed for a full time position at a company that was not the one that let me go, but was told that the position was put on hold, and there may be a "part-time contact opportunity."

Questions:

1. Do I put "Yes" on the continued claim form for "did you refuse any work?" if I pass on the contract?

2. If I accept the contact/part time position, is it preferable to ask for a W-2 position (is it even possible for part time?) or 1099 "independent contractor"?

3. If I accept the PT/contract, I assume I continue to file claims w/ EDD, listing my income, correct? Let's say that my weekly income is $1,000 - for that week, there'd be no payment from EDD, as I understand, correct? If one week, there's no work (or I arrange for time off w/ the company), then I can expect a full amount of benefits for that week?

4. Any experiences with EDD treating 1099 income as a basis for closing the claim altogether, since you are "self employed" and in business for yourself? I.e. the contract is up in 3 months, and I won't be eligible for any benefits after that since self-employment workers are not eligible for unemployment?

My considerations for taking the contract is that it's not a good idea to have a long gap on one's resume w/ no work at all. Any thoughts on just continuing to look for a full-time job? Also, the implications of a "part-time job" vs "1099 independent contractor."

Thanks!

[kess9532]

Looks like I'm answering my own questions, but still have some more:

Per Total and Partial Unemployment TPU 5 - General -- a person is not considered "unemployed" if they make more income than $600/week (in my case).

Under the provisions of the Unemployment Insurance Code, a person must be "unemployed" to be eligible for unemployment insurance benefits. The definition of "unemployed" for benefit eligibility purposes, is contained in Section 1252 of the Code which, in part, provides as follows:

" (a) An individual is 'unemployed' in any week in which he or she meets any of the following conditions:

(1) Any week during which he or she performs no services and with respect to which no wages are payable to him or her.

(2) Any week of less than full-time work, if the wages payable to him or her with respect to the week, when reduced by twenty-five dollars ($25) or 25 percent of the wages payable, whichever is greater, do not equal or exceed his or her weekly benefit amount . . ."

But does this (weekly income over $600) automatically lead EDD to close out the claim, as this post suggests?

//www.city-data.com/forum/unemp...w-days-ui.html

"In CA, you are allowed to keep 25% of what you earn. The rest is offset dollar for dollar against your benefit. If that amount equals or exceeds your weekly benefit, you are not paid for that week and CA may close the claim. CA closes claims after one week without a claim or paying a benefit.

You will need to call to reopen, although I think they have an online option for that. They will want to know why your wages came to an end and will schedule an interview. It may take a week or two to reopen the claim. Best to call rather than use online. You may be able to circumvent the interview scheduling process and avoid any delays in resuming benefits."

So regardless if I have W-2 or 1099 part-time work, if I make more than $600/week, I will lose the unemployment, and have to go through re-opening, if the contract ends? Does W2 vs 1099 matter in re-opening a claim?

[Chyvan]

Regarding question #1, you report that you refused work. There will be an investigation. However, if you applied for a good full-time job like you had before, and then they offerred you a part-time, temporary consolation prize, then you say as much and say it was unsuitable based on what you had before. For other people reading, if faced with this situation, just thank them for the interview, and move along.

The other stuff you ask really depends on your situation, but to me, a part-time, temp, potentially 1099 employment is no substitute for a real job. I'd rather be on unemployment. More often than not what happens, is you can't stand the part time job, and you end up with no unemployment and no job. It sets the bar lower on future suitable work. Trust me, the stop gap, part time work will be there AFTER your benefits are exhausted, and the decision is much clearer: $0/wk on unemployment vs $ from part time work. When the decision is $450/wk on UI vs $480/wk part time, and the risk you can lose it all makes no sense.

[Ariadne22]

Originally Posted by kess9532

Does W2 vs 1099 matter in re-opening a claim?

No.