Results 1 to 9 of 9
  1. #1
    Join Date
    Jun 2018
    Posts
    1

    Default Working As 1099 Contractor While Collecting Unemployment Benefits

    My question involves independent contractors in the state of: California

    Will EDD find out if I am earning 1099 as an independent contractor and collect unemployment benefits at the same time when I dont report it?

    If so, how do they find out?

  2. #2
    Join Date
    Jul 2010
    Posts
    8,006

    Default Re: Working As 1099 While Collecting Unemployment Benefits

    They may find out. You are committing fraud. You need to report your 1099 wages. If they are less than your weekly UI benefit, you should get the difference. If they are more, you won't be eligible for benefits for that particular week.

  3. #3
    Join Date
    Oct 2016
    Posts
    4,301

    Default Re: Working As 1099 While Collecting Unemployment Benefits

    Seeing as EDD is both the agency that handles both unemployment and 1099 reporting there is a pretty good chance they crosscheck.

  4. #4
    Join Date
    May 2017
    Location
    Florida
    Posts
    355

    Default Re: Working As 1099 While Collecting Unemployment Benefits

    Very likely that they will notice this. CA is a very aggressive state in reconciling income and state benefits. For exactly the reason this case demonstrates.

  5. #5
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Working As 1099 While Collecting Unemployment Benefits

    Quote Quoting asa_jim
    View Post
    Very likely that they will notice this. CA is a very aggressive state in reconciling income and state benefits. For exactly the reason this case demonstrates.
    If they reconcile to tax returns then they will definitely catch it at tax time if they do not catch it before that.

  6. #6
    Join Date
    Jan 2015
    Posts
    1,142

    Default Re: Working As 1099 While Collecting Unemployment Benefits

    They WILL catch you. If nothing else, they'll get it when you file your taxes for the year. But between now and then, there are other ways they can very well catch it too. DO NOT draw and work as a contractor. Stop your claim while you are working. Then re-start your claim when you are not working. It is spectacularly easy to catch people, they are spectacularly dumb about how these things cross reference and how the system will get you in the end. If you are reported by a jealous friend, or an ex or if there is the slightest indication that there is something questionable about your claim, you can get audited, and if they audit you they will catch you. Don't be a dumb ass. The penalties and the whole ball of complications that you can get into are NOT worth it. Stop your claim during any week you worked for wages. Re-start your claim when you are not working for a week. Do it right, save yourself a long term problem. You're not smart enough to outwit a system which assumes most people will be lying to them, has contact with every employer who does business in the state, and has access to all your state and federal wages and reports and tax documents. In times of high unemployment, they are not quite so diligent. Right now, we are not in a time of high unemployment. There aren't a lot of people drawing benefits. This means they audit the fire out of everyone who is. Don't do it.

  7. #7
    Join Date
    Oct 2016
    Posts
    4,301

    Default Re: Working As 1099 While Collecting Unemployment Benefits

    The OP doesn't have to close the claim. They simply have to report the earnings each week.

  8. #8
    Join Date
    Jan 2015
    Posts
    1,142

    Default Re: Working As 1099 While Collecting Unemployment Benefits

    That is correct. But if they report anything over their weekly benefit amount in gross wages, it will stop the claim automatically and the claim will have to be reopened before they can file again. That isn't very hard to do, you just get on the system and tell them you want to re-open.

    Of course if they make less than their WBA in gross wages, and report it (Sunday through Saturday, regardless of how it is actually paid) it will be partialed out, the U.I. office will do the calculations, and they can receive part of a U.I. benefit, work, and keep the claim open. But almost any 40 hour job gross wages will be more than a weekly benefit amount. If they simply do not certify for a week, it will also automatically stop the claim and they'll also need to reopen it before certifying again.

    But if they are not working for a covered employer, they do not have to recertify for eligibility for benefits, they just re-open the claim. They should not file for any week where they work as a 1099 for anyone without reporting the actual gross wages they made (Sunday through Saturday) but then when they are not working, they can definitely re-open and start back getting benefits at that time.

  9. #9
    Join Date
    Mar 2012
    Posts
    1,360

    Default Re: Working As 1099 While Collecting Unemployment Benefits

    Quote Quoting comment/ator
    View Post
    then when they are not working, they can definitely re-open and start back getting benefits at that time.
    This isn't exactly true. I think the guy wants to work Uber. EDD is going with the theory that if you sign up for Uber that is now your career. If you want partial UI, then you're going to have to prove that you were logged into that app 8 hours per day 5 days per week. None of this "surge" pricing, and then you claim UI for the other 7 hours of the day you didn't feel like being logged into the app. Or if the car breaks down, then too bad. It's a quit.

    This might work in Indio where the demand is probably low, but not in LA.

    My advice, just look for a REAL job, and save this crap (I'm sure it's crap) 1099 work for when the UI runs out.

    Also if it's not Uber, if you take a 1099 job and get fired or quit just like any other claimant, you have to go through a new adjudication. You can't sell Avon, and then decide to quit because you're not making any money. CA is less picky about "joining the ranks of the self employed," but that's usually for people in IT that get a job on a project. This "I took a 100% commission job and now it's not working out" still causes people grief.

    1. Sponsored Links
       

Similar Threads

  1. Unemployment Benefits: What Happens if You Commit Unemployment Fraud by Collecting Benefits While Working
    By nikid in forum Employment and Labor
    Replies: 8
    Last Post: 06-27-2017, 08:02 AM
  2. Unemployment Benefits: Collecting Unemployment While Working in Another State
    By cajr1968 in forum Employment and Labor
    Replies: 2
    Last Post: 02-13-2014, 12:11 PM
  3. Business Management: LLC Member Working in Company As a 1099 Contractor
    By snowbird6 in forum Business Law
    Replies: 3
    Last Post: 07-15-2013, 08:02 AM
  4. Unemployment Benefits: Getting Unemployment Benefits After Working As an Independent Contractor
    By danyela in forum Employment and Labor
    Replies: 2
    Last Post: 01-27-2010, 02:29 PM
  5. Unemployment Benefits: Can I Continue Collecting Unemployment While Being Paid on a 1099
    By julieg713 in forum Employment and Labor
    Replies: 2
    Last Post: 10-01-2009, 08:20 AM
 
 
Sponsored Links

Legal Help, Information and Resources