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Commission-based Sales

by Gio
(Glendora, CA)

I have been collecting UI benefits for the past 8 months. I was recently offered an employment opportunity as a commission based B2B sales representative. I am trying to determine whether or not I need to cancel my claim upon accepting employment, regardless of the fact that I may not earn any income from commissions for over a month. The position is an home-based, telecommuting position. I am never required to conduct business at the main office, but I will spend a significant amount of the work week in the field trying to generate new business. The recruiter informed me that all employees are required to fill out a W-9, and we are not considered 1099 employees. How will this position affect my status? What tax benefits, if any am I allowed to/ prevented from taking advantage of compared to a 1099? I want to get off UI as soon as possible, (every bit the state can save helps) but I do not want to put myself into a situation where I could possibly go 2 or 3 months without an income.


Thanks in advance,

Gio


Gio,

I'm not a tax expert, but my understanding is that a W-9 means you are an independent contractor .. therefore self-employed.

This means that you should be free from control of an employer and that you will be responsible for paying your own taxes .. including Social Security.

You might want to look into consulting with an accountant to set up an actual business so "expenses" are dedcuctible.

After having my taxes done recently .. it's something I wish I had done .. this new laptop I had to buy when my old computer crashed .. wasn't deductible.

As far as unemployment .. I don't think I' would cancel the claim, because if this doesn't work out .. you might end up with a base period that doesn't have enough "covered wages from employment".

The main issue though, that I can see for you is if you are out in the field and not earning anything your availability to accept full-time work will become the issue.

Whenever someone takes the initiative .. A&A becomes the issue.

California addresses the issue of self employment and the A&A issue in section G of the Determination Guide.

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