Workplace temporarily closing! A couple questions... (collect, file, receive, apply)
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I work at a bar in New Jersey that will be closing for 2 weeks for renovations. In order to continue a somewhat steady flow of income I am planning on filing unemployment. What I am unsure of is what type of unemployment this falls under (if there is a special or temporary unemployment) and more importantly, how soon before we close can I actually file? I know it can take a week or two to recieve payment so I'd like to file as early as possible so that I can maybe get a payment while out of work rather than when I return. My boss said that he has no problems with us claiming for the 2 weeks. Any information on this type of scenario would be appreciated!
Only few states allow an employer to pre-certify an office closing. NJ isn't one. As such, I believe you have to wait until you are actually not working to claim. I see no reason not to file the very next day after your last day of work. However, don;t expect any money for several weeks.
Some of your post is very wishful thinking. What you do is apply for UI after your last day of work, submit your claim forms as directed, and then you'll end up waiting 6 weeks for your first two-week check. So save you money because this is NOT going to work out like you want. There will be NO check in time to "steady your flow of income."
In some states when there is a definite date to return to work, you'll be exempted from the work search, but don't be so certain because my state used to be like that, but now everyone has to look for work even for a short lay off because the unemployed are treated pretty badly nowadays.
NJ will never process the claim and issue payment in two weeks. In NJ, three weeks after filing - earliest - and that's absolute best case. You'll be back at work before NJ pays you, for sure.
Thanks for the information everyone! I'll pass it around at work, too. Just to be clear (not that I need to, but...) I have been saving money. While I do work for tips on a daily basis, I'd be a fool not to prepare myself for this "2 week vacation". I have 2 bills to pay tomorrow (today, Monday) and then I have this coming work week before we close for the 2 weeks, and I already have plenty stashed away. A couple years ago I would've been idiotic enough to blow all my money a couple days into the break but I'm a little wiser now. I am still filing because that just seems like the smart thing to do. My friend has some home remodeling work I'm going to be helping him with as well during those two weeks, which my boss told me I can work under a 1099 instead of a W4 in order to claim while working for those two weeks. Is this true?
My friend has some home remodeling work I'm going to be helping him with as well during those two weeks, which my boss told me I can work under a 1099 instead of a W4 in order to claim while working for those two weeks. Is this true?
NO! In the UI world, work is work whether you volunteer, help a friend, or do it for free as a favor. It would need to be reported no matter the method of payment. It will be a potential offset to your benefits, so you might find out you just ended up working for money you could have gotten for free.
I also find it interesting that your boss is suggesting it. Makes me think he wants to report you so he can save a few bucks.
You just use the UI system for it's intended purpose and that is to look for a job about as good or better than you had before, and get caught up on your sleep and personal business. With your chores out of the way, you'll have plenty of free time to help your friend when you are back to work, and it won't affect anything with your UI claim.
NO! In the UI world, work is work whether you volunteer, help a friend, or do it for free as a favor. It would need to be reported no matter the method of payment. It will be a potential offset to your benefits, so you might find out you just ended up working for money you could have gotten for free.
I also find it interesting that your boss is suggesting it. Makes me think he wants to report you so he can save a few bucks.
You just use the UI system for it's intended purpose and that is to look for a job about as good or better than you had before, and get caught up on your sleep and personal business. With your chores out of the way, you'll have plenty of free time to help your friend when you are back to work, and it won't affect anything with your UI claim.
Really? Hmm...
So when I asked him if we can claim unemployment for the two weeks he said absolutely because we are, in fact, closing for two weeks so there's really no gray area there. Near the end of the conversation I told him that I wasn't too worried about whether or not I could collect or not because I'd have temporary work for those two weeks helping a friend with some housework. This friend I speak of owns a DJ company that is a listed LLC, and when I did work for him before helping him set up his warehouse he put me on the books because that's just how he does business - he always puts any work he pays people for on the books and pays them through his payroll. When I said that, my boss said that I "could even ask him to 1099 me instead of W4". I asked him what the difference was and he said that a 1099 is like a W4 except that it's basically a form of pay for freelance type jobs and that a 1099 doesn't have to be reported until the end of the tax year if he were to list me under 1099 and pay me with a money order. He then went on to tell me how whenever we have a DJ at our bar for a night they pay them in anything but a payroll check (cash, money order, etc) but it's on the books as a 1099 so that the 1099 isn't listed until the end of the year. Correct me if I'm wrong, but are you saying that they're doing some kind of finagling in that scenario for whatever added benefit it may bring them?
A DJ in a bar for one-night might be a legit 1099 situation. The problem is that most states adopt the policy that a worker is an employee until the employer proves otherwise, and when push comes to shove, most employers suck at it so the "employee" gets reclassified.
Many people that work 1099 for a long time will accept it while everything is great until the work dries up, and the person needs UI. Many would fight the system and get reclassified and laugh all the way to the bank. They may have gotten premium salaries because they were "contractors," but then ended up hitting the employer with the unpaid taxes when there was no way for the employer to get the money back.
My other rule on UI is NEVER involve your employer. You're out of work for two weeks, go apply, and leave him out of the process. Too many will say things like "I won't contest," and two seconds after you are applying they are telling UI a different story because it COSTS them money through their reserve account that translates to higher taxes.
my boss told me I can work under a 1099 instead of a W4 in order to claim while working for those two weeks. Is this true?
Oh, good God.
ALL EARNED INCOME MUST BE REPORTED.
It doesn't matter if it's W-2 or 1099.
EARNINGS ARE EARNINGS.
If your boss honestly believes 1099 is not reportable, he is a very poorly-informed employer. Just because an employer isn't paying UI tax on 1099 earnings does not exempt the employee from reporting those 1099 earnings if the employee is also claiming unemployment benefits. Earnings are earnings.
You have two choices:
1. File for benefits, work for your friend and report the earnings - which no doubt will offset most, if not all, of any benefit NJ might pay - or
2. Don't file at all and work for your friend.
Per NJ:
Quote:
The ten most common causes of Unemployment Insurance fraud
Here are the ten most common things claimants do that result in a determination of fraud:
1. Claim benefits after returning to work. You must stop claiming benefits the
first day you start work at a new job, not when you receive your first paycheck.
2. Work while collecting, even if you worked for less than an hour and even if you
were not paid. Note: Volunteer work is allowed. Please see page 17: “What if I do
volunteer work?” for more information.
3. Work “off the books” or “under the table” while claiming benefits.
No. 3 - whether paid CASH or on 1099 is exactly what you would be doing and is FRAUD.
Quote:
Originally Posted by stevegriendling
Correct me if I'm wrong, but are you saying that they're doing some kind of finagling in that scenario for whatever added benefit it may bring them?
The added benefit to an employer paying on 1099 is they don't need to pay their share of FICA, UI, Worker's Comp, etc.
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Last edited by Ariadne22; 01-12-2015 at 01:01 AM..
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