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Old 02-10-2019, 12:04 AM
 
Location: New Jersey
45 posts, read 17,514 times
Reputation: 30

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Lost job end of July 2018 (after working 2 years there) but received a 3 month severance until Oct of same year. However, immediately after termination, received a 6 month independent contract as a consultant starting in Sept 2018 that lasted until end of this month (Jan, 2019). Can I still file for unemployment from the employer that originally terminated my position? I reside in NJ & the company in question is also in NJ. However, the short term independent contracting work was for a firm located in Pennsylvania. Thanks for any info you can provide!
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Old 02-10-2019, 12:51 AM
 
14,508 posts, read 28,049,521 times
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I would, but I'd apply against the LAST "employer" and demand my "wages" be reclassified.

Most independent contractors really aren't.

I'd apply in NJ first, and if you end up burning through your 26 weeks of NJ unemployment, then hit up PA for another 26 weeks because those "wages" will now be fully in PA's base period.
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Old 02-10-2019, 12:04 PM
 
Location: New Jersey
45 posts, read 17,514 times
Reputation: 30
Thank you for the quick reply, Chyvan!! Really appreciate the info!

Just to complicate matters though, my husband just recently created his own LLC (in NJ) & added my name to it. He hasn't applied for any EIN yet so the process is not completed yet. He also has not specified what percentages of ownership we each have. Will this affect my eligibility for NJ UI benefits even if I haven't put in any hours of work while receiving Unemployment? And let's say if I do work a few hours a week (under the LLC), would that complicate things?
Thanks in advance for any advise you (or anyone else) can offer!!
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Old 02-10-2019, 01:01 PM
 
14,508 posts, read 28,049,521 times
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Quote:
Originally Posted by crysdevdan View Post
Thank you for the quick reply, Chyvan!! Really appreciate the info!

Just to complicate matters though, my husband just recently created his own LLC (in NJ) & added my name to it. He hasn't applied for any EIN yet so the process is not completed yet. He also has not specified what percentages of ownership we each have. Will this affect my eligibility for NJ UI benefits even if I haven't put in any hours of work while receiving Unemployment? And let's say if I do work a few hours a week (under the LLC), would that complicate things?
Thanks in advance for any advise you (or anyone else) can offer!!
I would make him stop. You just don't go putting your name on an LLC for the fun of it. It starts to make you look like someone that's "joined the ranks of the self employed."

He can turn in the paperwork AFTER you've drawn your last UI check, or just take you off.

Stay away from self-employment if you value that UI check. It causes too many issues.
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Old 02-10-2019, 09:03 PM
 
Location: New Jersey
45 posts, read 17,514 times
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Thank you Chyvan! Sounds like good advice & I will definitely take heed & ask my husband to take me off the LLC. I just hope there's an easy way to do that. He applied for the LLC through IncFile as the Register Agent.

Thanks again for the great advice & your time in answering my questions!
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Old 02-13-2019, 01:42 PM
 
Location: New Jersey
45 posts, read 17,514 times
Reputation: 30
I have some more questions but instead of starting a new thread, I thought I would just continue on this thread. If my husband takes me off his newly created LLC & he decides to hire me to do some part time work for him as an employee while I am still receiving NJ unemployment:

1.) Would this be a problem if we file our income tax return jointly (this is what we normally do each year).

2.) Let's say if possible (& no issues) for me to work part time for his now 'single member' LLC, would he have to add me as his employee & put me on payroll, deduct payroll, SS, Fed, State, UI taxes & all that? In this case, does his LLC have to be classified as single entity only or can the LLC (or is it better?) be classified as a corporation?

Thanks again for any advise or info you can provide!!
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Old 02-13-2019, 06:32 PM
 
14,508 posts, read 28,049,521 times
Reputation: 2562
Why do you want to do this? NJ and PA have some of the best UI benefits in the country. You're just asking for trouble.

If you work part-time for your husband in the correct way, there's a real chance you're going to be labelled as family, and get cut off.

Please just let your husband do the business thing, and you keep out of it until you've drawn your last UI check, and he can set the business up as an LLC or a corporation based on what works for HIM, and leave you out of it.

https://www.michigan.gov/uia/0,4680,...8831--,00.html

"A family member who works for a family corporation is also covered by unemployment benefits, but if the person claiming benefits owns, alone or in combination with a child or spouse, more than a 50% interest in the business, then benefits are limited to 7 1/2 weeks. If the worker is under age 18 and his or her parents own more than a 50% interest in the business, then that worker is also limited to 7 1/2 weeks of benefits. In order to receive even these limited benefits, though, both the employer and the claimant must disclose to UIA the claimant's relation to the business owners.

If the family business is a partnership or sole proprietorship, then a worker is not covered at all by benefits if the business is owned by the worker's child or spouse, or if the business is owned by the worker's parents and the worker is under age 18."

These are the things you face. I don't know the finer points of the rules for PA or NJ, but once you know of there existence (like I do), then you avoid them at all cost.

Ask yourself, what does you being involved in this business accomplish? If the potential loss of your UI isn't a factor, then go ahead, but in NJ and PA it's not chump change. I'd feel very differently if you live in FL.
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Old 02-15-2019, 12:21 PM
 
Location: New Jersey
45 posts, read 17,514 times
Reputation: 30
Thank you once again for your info, Chyvan! You make a lot of good points & well taken. They are good advise! I will let my husband know. Have a great weekend!
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