unemployment info as a 1099 contractor?

TXaviator

TXaviator

Well-Known Member
anyone familiar with unemployment stuff...

in texas can you claim unemployment if you are unable to find work if you previously had work as a 1099 contractor?

someone was saying you couldnt, but couldnt cite why, and it doesnt seem to make too terribly much sense... as i mean, if youre unable to find work...youre unable to find work...

anyone know the straight story or where to find better info?

:dunno:

from the Texas Workforce Commission site, it seems as though I would qualify:

2. Your separation from your last work
You must be unemployed or partially unemployed through no fault of your own to receive benefits. You should be prepared to present evidence that you tried to correct the problem before you quit.
Examples of qualifying reasons are:

  • You were laid off due to lack of work.
  • You are still working but the employer reduced your hours. (Your reduction in hours must not be the result of a disciplinary action.)
  • You were fired without work-related misconduct. Examples of misconduct are a violation of company policy; violation of law; neglect or mismanagement of your position; or failure to perform your work acceptably if you are capable of doing so.
  • You quit your job for a good well-documented work-related or medical reason. TWC may rule good cause if the work situation would cause a person who truly wants to keep the job to leave it.
    • Examples of possible good cause are unsafe working conditions or a significant change in hiring agreement, or not receiving payment for your work.
    • Examples of medical reasons are quitting on your doctor's advice, or quitting to care for a minor child, or quitting to care for a terminally ill spouse if there is no alternative care provider.
  • You quit to protect yourself from family violence or stalking, evidenced by an active or recently issued protective order, a police record documenting family violence or stalking directed against you, or medical documentation of family violence against you.
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I don't think you can file an unemployment claim in any state as an independent contractor.

Employers pay federal & state unemployment premiums on the basis of their total payroll with their "experience rating" factored in. Since independent contractors aren't considered payroll employees, they don't have unemployment premiums paid on their behalf, and so aren't eligible for benefits
 
hmm also from the TWC website it states that just because the company CALLS me an independent contractor, doesnt mean i AM one.

looks to me like i could have been collecting unemployment all this time. grrr

In a nutshell, independent contractors are not independent just because they are called that by the employer, or because they call themselves that, or because they have signed an "independent contractor agreement". Independent contractor status does not depend upon what a piece of paper says about the situation, but rather upon the underlying nature of the work relationship. A good way to think about the concept is this: independent contractors are independent business entities who are in a position to make a profit or loss based upon how they operate their own standalone business enterprises. For much more detail on this subject, see the article "Independent Contractors / Contract Labor" in Part I of this book.
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anthenry said:
That's the way I understand it as well. When you receive unemployment it is actually your money that you have been paying each paycheck. As a 1099 you never make those payments.

Go online and apply for the unemployment benefits. If you get denied you are not in any worse position.
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well fortunately i am going back to work on sunday. i was just thinking (albeit a bit late) that i probably could have gotten benefits all summer.

i will definitely apply next year when i get laid off again.


also in the manner of answering my own question, it appears there is an established IRS "eleven factor test" used to determine if the actual nature of the work is independent contracting or employee-type... of the 11 factors, only 1 in my case would indicate in the employers favor. (i dont believe its a pass-fail type thing, but more used in the judgement decision)

info here: http://www.twc.state.tx.us/news/efte/appx_d_irs_ic_test.html
 
The answer is no. If you think you are not a 1099, you need to take that up with your bosses. It seems like you were very much a contractor since you are doing a seasonal job and being contracted just for that job. (You are talking about aerial survey, right?)
 
anthenry said:
That's the way I understand it as well. When you receive unemployment it is actually your money that you have been paying each paycheck. .
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Not true. FUTA & SUTA (the taxes your employer pays to the state & fed for unemployment insurance) are paid solely by the employer. The employee has nothing withheld for this from their pay.

Last time I was an employee, I was in charge of payroll and was rezponsible for making the associated reports & tax deposits.
 
mojo6911 said:
The answer is no. If you think you are not a 1099, you need to take that up with your bosses. It seems like you were very much a contractor since you are doing a seasonal job and being contracted just for that job. (You are talking about aerial survey, right?)
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the documents provided by Texas Workforce Commission seem to indicate otherwise.

just because i am CALLED an independent contract, does not mean the actual nature of the work (their wording) is that of an independent contractor.

I am suspecting that my company may be using the 1099 payment of employees to their advantage.
 
TXaviator said:
I am suspecting that my company may be using the 1099 payment of employees to their advantage.
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They might be, but even if they are it doesn't mean you're eligible for unemployment bennies

Also not reccommended: applying for benefits anyway and collecting a check or two. If they decide you're not eligible, the very best outcome you can hope for is that you'll have to pay back the money you got.
 
Mike H said:
They might be, but even if they are it doesn't mean you're eligible for unemployment bennies

Also not reccommended: applying for benefits anyway and collecting a check or two. If they decide you're not eligible, the very best outcome you can hope for is that you'll have to pay back the money you got.
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right, but it would appear based on the materials provided by the texas workforce commission, that i do not meet the criteria of an *actual* independent contractor... thus i would be eligible for benefits.

and yes, i wouldnt be buying new 20" rims until i was for sure they were gonna let me keep the money.
 
Haven't you been employed as the 'dancing' establishment? Or was this just for a 'open' period....

Can one collect unemployment if your hours went from 'X' to 'X - Y' ?
 
JEP said:
Haven't you been employed as the 'dancing' establishment? Or was this just for a 'open' period....
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yes this summer i worked in the "adult entertainment" industry.... because i didnt think i would qualify and didnt really look into trying to get unemployment.

however, next summer... who knows.
 
Incorporate a company. "Joe's Awesome Company, Inc".

Hire yourself.

You now are an employee of Joe's Awesome Company, Inc.

Joe's Awesome Company, Inc bills your clients. They pay Joe's Awesome Company, Inc. Joe's Awesome Company, Inc. pays you.

When Joe's Awesome Company, Inc. has no more clients to bill, you lay yourself off due to lack of work, file for unemployment and take your check.

-mini
 
Only thing you forgot was to pay your unemployment insurance payment.

minitour said:
Incorporate a company. "Joe's Awesome Company, Inc".

Hire yourself.

You now are an employee of Joe's Awesome Company, Inc.

Joe's Awesome Company, Inc bills your clients. They pay Joe's Awesome Company, Inc. Joe's Awesome Company, Inc. pays you.

When Joe's Awesome Company, Inc. has no more clients to bill, you lay yourself off due to lack of work, file for unemployment and take your check.

-mini
Click to expand...
 
TXaviator said:
and yes, i wouldnt be buying new 20" rims until i was for sure they were gonna let me keep the money.
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Doesn't much matter now I guess as you apparently have a job again, congrats by teh way. But my wife filed last year around oct I believe, was granted benefits and then all of a sudden in Dec they came calling and wanting their money back. Unfortunately it seems they are pay first ask questions later, or maybe her old employer filed an appeal or something, we don't know either way. But we were on the hook for the money she had been payed which obviously had been spent on bills. We started having to pay back 100 bucks/mo until all paid off and then just last week found out her final appeal overturned the original overturn and we don't owe money back. After paying them 500 smackers already, which of course we won't get back.
All in all this took a year to figure out and finalize. So it seems it's never 'for sure' with these agencies. God help you if you try calling in and asking questions, you're lucky if you even get a human onthe phone.
 
I am an unemployed 1099 contractor. Here in Nevada your SOL. Its not my first time under a 1099. My opinion? Its not worth it when it comes to paying on those taxes. Even if you save every single receipt, the IRS still wants some money. I got a tax lawyer to help me out and learned a few valuable things. First was that number you get from the IRS is severely inflated. Apparently its legal for the IRS to commit extortion ;) However, when all is said and done, I only owed 20% of the number the IRS was throwing at me. Like someone else mentioned. A 1099 is an easy way for employers to make that business expense claim at the end of the year. It does not benefit the employee at all. I will never work under a 1099 again. It has been nothing but a headache.
 
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