EDD Benefits with Federal Extension and Consulting Work

[GunnTitans]

My question involves unemployment benefits for the state of: California

I was laid off from a full-time job in March 2010, and began receiving UI benefits at the maximum amount of $450/week. I have not earned any pay since then, and am now about to begin Tier 2 of the federal extension.

I've been offered a freelance job for 3 weeks in May. It is full-time with good pay, but will definitely end after 3 weeks. I would not be an employee, but would submit an invoice to get paid as a contractor.

What happens to my UI benefits? I will report the first week that I work for this contract on my UI form, and they will stop sending me the claim forms. But, when I call them after the 3 weeks and ask to restart it - is it a new claim? is it a restart of my old claim? Will I still get benefits based on my old salary at my last real job as an employee?

My original claim year will have ended, but I am on federal extensions. Does that mean I have to restart a new claim? If I do, do I start again with the federal extensions at the beginning?

Thanks so much for your help.

[SoCalUser]

Your claim is good for 1 year from the date you first filed. At the end of that year, you have to file a new claim. This generates a new look back period. If you have not worked in the year since your first claim was filed, then you will continue on with the extension you are currently in. My guess is that you've already figured this much out since you stated that you were starting the 2nd extension and it has been over a year since your first claim.

You are correct that once you report the freelance work to EDD that your benefits will stop. Since the claim forms come attached to a check in most cases, if you receive a check, the claim form for the following 2 weeks would be attached so you may receive claim forms for those weeks you are on the job depending on the timing of your benefit checks. Just be sure to report the first week on the job in the correct week. In my case, once I had reported a full 2 weeks worth of claim forms as being on the job, I stopped receiving claim forms. Your case may be different depending on the timing.

When you are done with the job, go online and fill out the claim form as if you are filing for the first time. Be sure to include the employer information and dates worked for the short-term job. Since you may still have potential benefits remaining on an extension, you should be able to pick up where you left off. The wages earned from this job would not come into play as a "look back period" until March 2012 when, if you were still not working, you would have to file a new claim.

Also, be VERY careful to report wages earned in the week that you earn them, even if you had not submitted an invoice to be paid. The claim forms state "Did you work or earn any money WHETHER YOU WERE PAID OR NOT?". Once you report that you are working, the employer is sent a letter to verify, so their dates and your dates need to match. I am not familiar with how freelance jobs get reported by an employer, but I would imagine that the employer would still have you on record as performing work for them during this time, even if they aren't paying you until the end of the job?

This is based on my personal experience and your case may be different.