How to file or not to file?

[cat mommy]

I have a question on unemployment and doing consulting work. I was laid off from my job on the 1st and now I'm doing consulting work with my old boss/new business partner doing web design, etc.

I don't know how to file for unemployment while you are doing consulting. I don't want to mess up my consulting work, but it would be nice to have some money coming in from unemployment, while our business gets going. Has anyone had experience with this?

 

[babyharley]

When I was on unemployment last year, I was told that any money I received from any jobs had to be reported

I would contact them to be sure though about the terms & conditions of unemployment in your state. Just so you don't get in trouble!

 

[cat mommy]

I definitely don't want to get in trouble. But I know you have to put down that you looked for work, but what would I put down? Did consulting?

Well, hopefully I will not need it, since my boss just called and said the client wants a major redesign of her whole site

so that will keep us busy! So far we have done little content based pages for her. So I'm excited about learning a new skill and staying with my boss.

 

[natalie_ca]

Make sure you indicate that the job was a one time very short term job that resulted in some income for you. You need to report it. UIC will then deduct whatever you made from the benefits that they give you if they are over the allowable amount that they allow you to earn.

 

[jen]

They told me that TECHNICALLY, the occasional babysitting I did was considered a "job". I was on unemployment awhile back, I got screwed over though by it. I was three months away from the school semester starting back up (my paid internship ended and it was summer break on campus where I worked before that) and I was going to continue my job there and wanted unemployment until the fall semester started up. Well I guess when you are on unemployment, they send a notice to previous jobs letting them know?? Because my old boss at a previous job called and asked me if I would like my job back. I declined because I wanted to go back to campus to work and I don't know if the old boss reported that I turned it down, or somehow they found out I turned down the job and despite the fact that I had another job lined up, they stopped my unemployment checks and wanted me to repay all the money this incident on. They didn't find out right away or it took awhile to process things. I don't know. But I still own to them, they keep a part of my tax return each year until its paid off. Luckily it wasn't much, but enough to be annoying.

 

[lunasmom]

All state laws are slightly different...however you can still work a job, even if its web site consulting, and get unemployment. The difference is that you won't receive the full unemployment benefits that you would get without any income.
Plus you're at the mercy of your old employer not fighting the unemployment office...which in your case you may want to skip the line. Filing unemployment and doing this consulting work for the employer that laid you off may cause some friction between you two.

 

[natalie_ca]

Originally Posted by lunasmom

All state laws are slightly different...however you can still work a job, even if its web site consulting, and get unemployment. The difference is that you won't receive the full unemployment benefits that you would get without any income.

That's correct. Several years ago I had lost my job and was looking for another one. I had been offered a job but the hourly rate that was very close to the minimum wage at the time and it wasn't enough for me to live on.

What happened is that I had to report my income from the job on each UIC card that I got, and when I got my UIC they had deducted what I made from the job and just gave me the difference. It was to go on like that until my UIC claim ran out or I found a different job.

But had I turned down that job, even if it didn't pay me enough money, I would have lost my UIC benefits completely.

I did manage to find a different job before my claim ran out.

UIC is a bear!

Back in January 1994 I found myself unemployed. January is a horrid month to be looking for work. People are on vacation, paying off Christmas debts, autopac etc. Plus I had intentions of returning to school later in the year (August).

I worked in the legal field as a legal assistant/paralegal, and there were absolutely no jobs! I cold called every single firm in the city and left them a resume and I pestered the heck out of all of them! Got an interview or two but for areas of law that I wasn't very familiar with and they wanted someone with more experience in those particular areas.

That March I started to take evening classes at the local University in preparation of Nursing School in August. My classes were during Spring Intersession and were from 7pm to 10pm 3 days per week for 3 1/2 months.

On the UIC cards it asked about school. I indicated that I was attending University classes in the evening. The buggers cut me off! They claimed that I wasn't available for work 24/7, 7 days per week and because of that I wasn't entitled to UIC!!!

My "trade" was a secretary. And every secretary job that I ever had in a law firm was Monday to Friday 8:30am to 4:30pm, and I was available for work during those hours. But UIC didn't see it that way.

I finally contacted the Minister in Ottawa who was in charge of UIC and explained my situation. I told him that I was available to work Monday to Friday during the day as required for a secretarial position and that it was unreasonable for UIC to tell me that I could not continue to go to evening classes which were outside the scope of the hours I would be working in an office. He agreed with me.

It was with his help that my UIC benefits were reinstated and I was able to continue to go to evening classes and finally to Nursing School (with student loans, which is another story altogether!!)

I do agree that if you may run into some problems with UIC if you are doing consulting work for an employer who just laid you off. They might wonder why they can't just rehire you.

 

[goldenkitty45]

I think you have to just find out where your local unemployment office is - look in the state government pages of the phone book. One thing I will suggest is that you get them to take taxes out of the unemployment NOW - because if not, you will have to pay more taxes at the end of the year on that money.

Unemployment is not free money - you will pay taxes on it.

 

[cat mommy]

Originally Posted by lunasmom

All state laws are slightly different...however you can still work a job, even if its web site consulting, and get unemployment. The difference is that you won't receive the full unemployment benefits that you would get without any income.
Plus you're at the mercy of your old employer not fighting the unemployment office...which in your case you may want to skip the line. Filing unemployment and doing this consulting work for the employer that laid you off may cause some friction between you two.

I'm thinking rather than give me headaches over the filing for unemployment. I'll skip it and just go to a temp/staffing agency to help fill in, if I need to. What happened was my boss and I both left the company, I was laid off and he quit. He left before me and I was just laid off. So I hope there wouldn't be friction. The company has stated that it will not contest any claims.

But my boss and I don't work in anyway shape or form for our old company, we are going out on our own for a business in web design/consulting. I have not told anyone yet at work what he and I are doing, because I don't want to cause friction between any parties. I would think it wouldn't be a problem since he & I both left on good terms (one quitting on friendly terms & my being laid off).

I'm just hoping that I don't have file or go to the temp agencies, just yet. I like working from home & the freedom it brings. Plus with our client's redesign of her whole website that she wants us to start next week, will keep us busy.