Question about collecting unemployment

[BB Bobcat]

Say you are collecting unemployment, but during that time you do a little freelance assignment or something and make $100. You fill that out on the bi-weekly form. As I understand it, they deduct that amount from what they pay you in unemployment, but tack it on to the end of your eligibility.

So here's where that seems weird to me.

Scenario A: I sit on my butt all week picking lint out of my bellybutton, watching Jerry Springer and surfing the internet for porn, and I collect my $450 unemployment.

Scenario B: I work the phones all week and rustle up three freelance assignments that pay me $200, so I get that $200 plus $250 in unemployment, a net result of the same $450. Of course, I could get that extra $200 back in six months, if I still don't have a job.

In scenario B, it seems I'm working for money that I'll hopefully never see (hoping I'm not still unemployed in six months).

Am I missing something? Is that really how it works?

(This is California, by the way. It probably works a little differently in each state.)

 

[Point of Order]

You're missing Scenario C: Work the phones for $200, don't report it, collect $450 in unemployment. Not that it's legal, but I'm sure a lot of people do it.

 

[slappy4428]

Say you are collecting unemployment, but during that time you do a little freelance assignment or something and make $100. You fill that out on the bi-weekly form. As I understand it, they deduct that amount from what they pay you in unemployment, but tack it on to the end of your eligibility.

So here's where that seems weird to me.

Scenario A: I sit on my butt all week picking lint out of my bellybutton, watching Jerry Springer and surfing the internet for porn, and I collect my $450 unemployment.

Scenario B: I work the phones all week and rustle up three freelance assignments that pay me $200, so I get that $200 plus $250 in unemployment, a net result of the same $450. Of course, I could get that extra $200 back in six months, if I still don't have a job.

In scenario B, it seems I'm working for money that I'll hopefully never see (hoping I'm not still unemployed in six months).

Am I missing something? Is that really how it works?

(This is California, by the way. It probably works a little differently in each state.)

You are assuming that your state will allow you to collect unemployment for a week that you reported income -- even if it wasn't 450

 

[BB Bobcat]

You are assuming that your state will allow you to collect unemployment for a week that you reported income -- even if it wasn't 450

Well, I'm pretty sure they will. If not, it's couch potato time for me for six months.

As for not reporting the income, I wouldn't think that would work with anyone that's got my SSN, cuz they are goign to report it to the IRS, presumably, and it could eventually come back to haunt me, right?

How bout Plan D: Sit around on the couch and collect my $450 while my wife goes out and makes some money

 

[Football_Bat]

You are assuming that your state will allow you to collect unemployment for a week that you reported income -- even if it wasn't 450

Well, I'm pretty sure they will. If not, it's couch potato time for me for six months.

As for not reporting the income, I wouldn't think that would work with anyone that's got my SSN, cuz they are goign to report it to the IRS, presumably, and it could eventually come back to haunt me, right?

How bout Plan D: Sit around on the couch and collect my $450 while my wife goes out and makes some money

Winner winner chicken dinner!

 

[Joe Williams]

State I'm familiar with, they pro-rate what they pay out in unemployment based on what you earn that week.

To use your example, you would report the $200 in self-employment income. The state would deduct $100 from the $450 benefit and send you a check for $350. So you'd end up with $550. But I don't think it adds any time to your eligibility period. It just keeps your "account" more flush in case you need that money within the eligibility and don't have self-employment to put against it.

Good luck. And yes, I've explored this closely because of, y'know, the current climate everywhere.

 

[MTM]

I'm in the same boat, I want to keep writing, but why should I if the state of California will pay me more to stay home?
Before being laid off, I already had a regular freelance gig, so I'm taking a chance not reporting that income, because I would be making that money whether or not I was still fulltime.
I've been able to line up about $200 a week in freelance gigs, and thinking of reporting it as all coming in the same week, figuring I get more if they hold one $450 check instead of taking a couple hundred each week.
Any report they get from the IRS won't report specific dates of assignments.

 

[forever_town]

I don't know California, but in Maryland, I believe the way it works is that you report whatever income you make in a week. If it's less than $100, you get your full benefit. If it's more than $100, you get your benefit check less the amount over $100 that you made. That also extends the money for your "benefit year" to the end of the cycle.

If you don't still have a job six months later, you'd have that money you didn't get on that week's check available to you.

 

[pseudo]

In PA, you can make up to 40 percent of your weekly benefit rate before they begin deducting it from your UE. Anything you make over that, you lose dollar-for-dollar. (My current numbers are $452 and $181. There's no way I'd pull in over $180 in a single week from the paper, a small-town weekly, so I'm good to go.)

So, if you lived here, you'd have the $200 from the gig + $430 from UE (40% of $450 is $180, so you'd lose the $20 over that.)

Still have to report it, although I'm wondering how that works in my case, since I never signed a contract or gave the paper my SSN info. I doubt they're reporting it on their end, but I do need to check that ...

Anyway, enough sidetracking into my own situation. Here's what California says:

Amount of Wages

Although a claimant is required to report to the Department to total gross wages payable, only a portion of those wages affects the claimant's eligibility for benefits under Sections 1252 and 1279.

If the wages allocated to a week claimed are $25.99 or less, such earnings are disregarded and, hence, have no effect on the claimant's eligibility for benefits. If the wages are between. $26 and $99. 99, $25 of the wages are disregarded and the amount remaining is considered to be deductible. If the wages are $100 or more, 25 percent of the wages are disregarded and, therefore, the deductible earnings would be 75 percent of the total wages.

When the deductible earnings equal or exceed the claimant's WBA, he/she is ineligible for benefits under Section 1252 since he/she does not meet the definition of an unemployed individual. When the deductible earnings are less than the claimant's WBA and the claimant has worked less than full-time, he/she would be ineligible for full weekly benefits under Section 1279. If otherwise eligible, the claimant would be paid the difference between his/her WBA and the deductible earnings.

EXAMPLE F

Claimant F worked less than full time and earned gross wages of $85 during the week ending August 4. F's WBA is $55. The amount of deductible earnings is $60 ($85 minus $25) which exceeds the claimant's WBA. Therefore, F is ineligible for benefits under Section 1252.

EXAMPLE G

Claimant G worked less than full time and earned gross wages of $120 during the week ending August 11. G's WBA is $85. The amount of deductible earning is $90 ($120 minus 25% of $120) which exceeds the WBA. Therefore G is ineligible for benefits under Section 1252.

EXAMPLE H

Claimant H worked less than full time and earned gross wages of $93 during the week ending August 18. H's WBA is $95. The amount of deductible earnings is $68 ($93 minus $25) which is less than the WBA. Assuming that H meets all other eligibility requirements, the amount payable would be $27 ($95 minus $68).

EXAMPLE I

Claimant I worked less than full time and earned gross wages of $200 during the week ending August 25. I's WBA is $166. The amount of deductible earnings is $150 ($200 minus 25% of $200) which is less than I's WBA. Assuming that I meets all other eligibility requirements, the amount payable would be $16 ($166 minus $150).

So, it looks like you'd have the $200 plus a UE check for $300 [$450 - ($200 x 75%)]. When our factory puts people "on call," some of them stop answering the phone after they work a couple of days in a given week, because they can make more between a partial paycheck/full unemployment that they would by working 40 hours.

There's some funny wording about ineligibility in there, though, so you'd best do your own research instead of taking my word for it.

Good luck.

 

[Hank_Scorpio]

State I'm familiar with, they pro-rate what they pay out in unemployment based on what you earn that week.

To use your example, you would report the $200 in self-employment income. The state would deduct $100 from the $450 benefit and send you a check for $350. So you'd end up with $550. But I don't think it adds any time to your eligibility period. It just keeps your "account" more flush in case you need that money within the eligibility and don't have self-employment to put against it.

Good luck. And yes, I've explored this closely because of, y'know, the current climate everywhere.

That's the way it is here. Pro-rated.


To the original poster, are these steady freelance gigs or just one-time only shots? Because I don't believe it gets reported to the IRS unless its over $600.

 

[silvercharm]

I found that reporting freelance work to unemployment was such a pain in the ass, that if I had to do it over again, I'm not sure I would. They send you questionaires and forms, and it's not so much the money, they think if you're freelancing, that's time you're not spending looking for a full-time job. That seems to be the goal in my state, making sure you're fully employed.

 

[BB Bobcat]

To the original poster, are these steady freelance gigs or just one-time only shots? Because I don't believe it gets reported to the IRS unless its over $600.

To be honest, it's not a writing thing at all that I'm doing. It's just an independenent contractor, once-in-a-while, weekend-type thing. For what I've actually done, they don't even have my SSN, but they did pay me by check, so there's a paper trail. I'm still debating whether or not to report it.

While I was typing this post, I got a call from a head-hunter who had a temporary contract job for me writing stories for a company's internal publications. Wow.

 

[forever_town]

I found that reporting freelance work to unemployment was such a pain in the ass, that if I had to do it over again, I'm not sure I would. They send you questionaires and forms, and it's not so much the money, they think if you're freelancing, that's time you're not spending looking for a full-time job. That seems to be the goal in my state, making sure you're fully employed.

It may depend on the state. In Maryland, they require you to make two job contacts a week and keep a record of those contacts.

As long as you make those two contacts a week AND as long as you're available for full-time work with no restrictions, you can work part-time and still draw unemployment benefits.

 

[BB Bobcat]

Here there's a form you fill out with a record of your job search but so far I haven't been required to fill it out, just check that, yes, I did look for a job. I assume they make you fill out the details after you've been out of work for longer.

 

[Hank_Scorpio]

Here, you call in every two weeks, certify that you were looking for work, whether or not you had earnings and then you get a check.

If you have a longterm unemployment, you have to put your resume online through their database. You don't have to do that if its a short term layoff because of lack of work.


Another note: they don't issue paper checks here anymore. You either have to get direct deposit or they give you a pay card that works like a debit card.

 

[JD]

I'm in the same situation......I recently did three basketball games a block from my house, and am getting paid $150 for it. This week, I did a game on Thursday, Friday, and will be doing one today (Saturday), for another $150....So that'll be $300 in the two weeks that I will have to report for as of the 14th. I probably not gonna report it, but I'm just wondering....

 

[RayKinsella]

On top of it all, why am I reporting something for this week if I am not getting paid for it for another 3 weeks?

 

[Joe Williams]

Believe most places use the standard of when you "earned" the pay, as in when you actually did the work. Rather than when (if?) you get paid.

 

[Mark2010]

yeah, that is the case here.

Been doing some freelance stuff since being laid off. Can vary widely, from nothing one week to $300-400 the next. I report it the week I earn it, but don't actually get paid until the end of the month. So it cuts into my weekly benefit amount, but the lump sum at the end of the month helps pay the rent.

In Oregon, I am allowed to earn up to 1/3 my weekly benefit amount with no deduction. Anything beyond that, the take a fraction away from that week's benefits. On the one week I earned MORE than my benefit amount, I didn't receive anything from the state.

Now, that money isn't gone. It stays in a pool that i draw from. I have a full year to draw out a certain amount. When that amount is up, I'm done. (Although new legislation allows me to apply for a new "pool" once mine runs dry.) So, by not drawing out as much now, I can stretch the pool of money further. Since job prospects aren't looking very good, that is a good thing.

The reason they don't just give you the entire amount (or whatever you want) at first is because too many people would waste it and then 3 months from now be flat broke and on the street. I DO understand the logic, although it forces me to live very frugally for the time being.

P.S. I can only WISH my benefits were $450 a week. If I was getting that much, I wouldn't be doing any freelance stuff. *sigh*

 

[RayKinsella]

I was thinking about this the other day, what if I did not report my freelance wages and all the unemployement office had to do was open up the newspaper to see my name. That is a little scary.