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Will working under a W9 as an independent contractor affect a continuing UI claim?

by KC
(La Puente, CA)

I've been collecting UIBs for 4 months now; and I've recently been asked if I'd help with some projects for a start up company. The company has asked me for a W9 instead of a W2; so does that mean I'm considered an independent contractor? Will this affect my benefits if the projects yield more money than my UIBs? The company did mention that the opportunity could be a contract (temp) to hire; but it's a very volatile situation so there are no promises - I'm wondering if I continue to claim my earnings as a "self employed independent contractor" under the W9; will I run into a problem in completing my continue claims form every week and if the projects fall through where I find myself back to collecting UIB?




Hi,

Yes, you do have to report the wages you earn in self employment.

Whether you need to file continuing claims though is a matter of how many hours you think you be working and how much you earn if the hours are less than full-time. See table 3-8 for a state by state breakdown of how partial unemployment benefits are calculated.

If you've only collected 4 months or so .. you should still have about 10 weeks of regular benefits left and that balance of benefits may be available to you anytime you're totally or partially unemployed between your BYB and BYE claim dates.

However, self employment or independent contracting is an issue of being able and available for work that does and can vary by state.

In California .. being self employed alone is not the reason itself that will prohibit you from collecting partial benefits .. or restarting your claim before your benefit year ends when the independent contracting gig is up.

Explanation about California unemployment when self employed.

PS I believe XE means excess wages .. as more than your weekly benefits after the disregard amount found in table 3-8 up above.

Chris

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