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I currently am working full time as a W2 employee. This project is nearing its end and there are a couple of scenarios that might occur and I'm wondering if anyone knows how each of these could effect CA EDD?
When I lose my W2 work, I know I'll be eligible for the whole $450/wk in benefits.
I also have the opportunity to do some side work on a 1099 at an excellent rate of $45/hr.
1. My W2 status could be changed to Part Time, and I'll have an opportunity to do some part time work on a 1099 at the same time. If my W2 work stops and I am then just doing the part time 1099 work for a little while, when the 1099 stops, can I file for unemployment based on my W2 end date?
2. My W2 status ends and I file for unemployment benefits. I receive a couple of checks, and then do the 1099 work off and on for a couple of months (I only need to work 10 hrs/wk to not be eligible for benefits for that week), can I reopen my EDD claim each week that I don't have the 1099 work?
3. How do I make sure that CA doesn't make the determination that I am self-employed while I am doing the 1099 work?
I'd appreciate any insights anyone has. I tried call CA EDD today and no matter what selections I used in the phone tree, I could never get to a human being. I spent about 45 minutes trying, so now I'm hoping to get some help via another avenue.
Being paid on 1099 does NOT confer self-employment status.
Quote:
An independent contractor is a person who is engaged in an independent employment or occupation, responsible to his/her principal only for the result and not for the manner or means by which it is accomplished.
The Supreme Court in the Empire Star Mines case summarized the rules for determining the existence of the employment relationship as follows:
"In determining whether one who performs services for another is an employee or an independent contractor, the most important factor is the right to control the manner and means of accomplishing the result desired. If the employer has the authority to exercise complete control, whether or not that right is exercised with respect to all details, an employer-employee relationship exists. Strong evidence in support of an employment relationship is the right to discharge at will, without cause . . . "
When I lose my W2 work, I know I'll be eligible for the whole $450/wk in benefits.
I also have the opportunity to do some side work on a 1099 at an excellent rate of $45/hr.
1. My W2 status could be changed to Part Time, and I'll have an opportunity to do some part time work on a 1099 at the same time. If my W2 work stops and I am then just doing the part time 1099 work for a little while, when the 1099 stops, can I file for unemployment based on my W2 end date?
Yes.
2. My W2 status ends and I file for unemployment benefits. I receive a couple of checks, and then do the 1099 work off and on for a couple of months (I only need to work 10 hrs/wk to not be eligible for benefits for that week), can I reopen my EDD claim each week that I don't have the 1099 work?
Yes.
3. How do I make sure that CA doesn't make the determination that I am self-employed while I am doing the 1099 work?
It won't. See above.
One cautionary note. Those 1099 earnings will serve to extend payment of your state benefits. If you have a claim eligible for EUC, you want to be sure to exhaust your state benefits and begin EUC before the benefit year end of your claim or, better yet, before the end of this year - in the event Congress extends EUC only for those already claiming the benefit - remote possibility, but it could happen.
In CA, in order to receive EUC, your claim needs total base year earnings which exceed 40x your weekly benefit or exceed 1.5x high quarter earnings.
Quote:
Originally Posted by xtcinla
If I file for EDD in CA in Mar/Apr/May, maybe even June/July 2013, will I be eligible for any of the extensions, or will I only be allowed the 26 weeks for my claim?
If you file in late/June early July you will miss the 12/22/2013 cutoff for transition to EUC. Especially if you work.
Regarding EUC
So, if I understand this correctly, my 2013 claim has to run out of money (the original 26 weeks) prior to 12/22/13 in order to eligible for the extensions?
Also, thank you so much for your quick response, it eases my mind quite a bit.
One more question, while I'm at it....
What is the difference between being an independent contractor and being self employed.
My particular situation is that I would perform Software Testing for this company, I would be remote and working out of my home with my equipment, but would connect to their site to do the testing. I would on occasion go to their office to meet and review face/face and would also participate in conference calls. They will not be dictating how I perform my tasks, or in what manner my work product is to be presented, nor will they determine when/where I perform my testing.
So, if I understand this correctly, my 2013 claim has to run out of money (the original 26 weeks) prior to 12/22/13 in order to eligible for the extensions?
Keep in mind, all payments end 12/28, even if you are collecting EUC - unless Congress extends the legislation yet again.
Quote:
Originally Posted by xtcinla
What is the difference between being an independent contractor and being self employed.
For UE purposes, none. Don't claim the weeks you are working. CA will inquire why you didn't claim. You say you had a project paid on 1099. It happens all the time. It is not a big deal unless you are claiming benefits while running a business or working as an independent contractor and are perceived to not be able and available to search for and accept full-time work. If you are running a small business in addition to claiming benefits, you do need to get CA approval.
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