If I fill out a W9 for a one day job while on unemployment in the State of Maryland, will the Unemployment Office find out?
I have a friend who is on furlough and collecting unemployment. I want to offer her a 1 day job but because she has to fill out a W9, she is concerned it will effect her unemployment checks.
Hi. I'll answer with what comes to mind to point out where problems could potentially pop up.
1. If you are the one employing the friend for a day, you also need to make sure the wage paid for the day is not going to be subject to MD unemployment tax if it might be considered covered employment.
2. Just one day shouldn't affect your friends right to collect unemployment benefits in the future if you confirm to the DLLR it was for only one day should they decide to investigate when they claim full benefits for the next week.
In some states they "suspend benefits" pending a continuing eligibility issue such as this.
Depending on how much the pay is for the day, it could make the benefit amount for that week subject to reduction using the Maryland formula for partial unemployment benefits.
But, I don't think that is a bad thing because most states also have a standard disregard amount of the earnings before they start reducing benefits, thereby actually allowing the individual to earn more than their weekly benefit amount.
The problems however for lots of unemployed people is that actual temp employment agencies have made a habit out of responding to state eligibility inquiries with some protests that can have the effect of not letting the individual return to collecting benefits when no further work is available .. and of course in some states these agencies have the added advantage of temporary worker provisions which shift the burden to the temp worker for proving they notified the temp agency an assignment has ended within x number of hour (usually 48) and request a new assignment .. or be disqualified for a voluntary quit without good cause.
You're not a temp agency, are you?
You don't have plans to turn your "friend" into your own personal on call w-9 temp employee .. and try to avoid paying unemployment tax on the wages you pay them are you?