Can I still get my unemployment checks if I'm a Realtor and just closed a transaction and got paid?
I have searched the internet everywhere but can't find the answer to my question. I'd really appreciate your help. I have been on unemployment since Feb. 2009. I couldn't find a job anywhere so I got my real estate license and just closed my first deal. I got a check that is considered self-employed income. Do I have to claim this to the unemployment office? Can I still receive my benefits? What do I need to do in order to play by the rules?
The rules may not be on your side. Real estate commission are considered excluded employment. In other words, even if you work as an agent for a company (I think this might be required for new agents) the boss doesn't have to pay UI taxes.
The issue, at least what I think the issue will be for the EDD would be that you are collecting unemployment and that your work as an independent, self-employed real estate agent makes you not able and available for "covered" employment any longer .. that is the problem.
You can't not report the commission .. because I'm certain that unemployment departments cross check with the IRS ..
So they will find out eventually, and the issue will be "are you able and available and seeking covered work? .. when did you start working in real estate? How many hours a week do you devote to this self-employment? Are you still looking for regular full-time employment? Can you provide us with proof that you are applying for job? Faxing your resume?
forward to a determination which says you have been overpaid. The issue varies by state.
Frankly, it's ridiculous. The system is not meant to encourage people to take initiative to earn their own living .. only to tide you over for the short term until you can return to being the wage slave of someone else.
This is interpreted differently from state to state.
My suggestion is always the same. Everyone should have a business while they have a job even if they only work on it in their spare time.
What's the difference between starting a business while employed or after you become unemployed?
Starting a business takes time and energy .. and they only believe that you can be able and available while simultaneously working and running a business .. because you can prove you did it concurrently.
If you start it after you become unemployed .. they think you spent all your time starting it and took advantage of UI benefits to subsidize starting a business.
How's that for stupid government reasoning.
Of course I'm sure someone will throw all the bad apples in my face who would take advantage.
Punish those with initiative to protect yourself from those who are sitting at home cracking six pack after six pack and think monster is something that makes your kid cry.
Sorry for the rant California .. but it sure felt good for a change.
This issue is near and dear to my heart because I think more unemployed people should be trying to find alternative ways to earn a living .. other than faxing resumes.
What a wast of 99 weeks that would be.