Can You Collect Unemployment & Still Own a Small Business?


J

JP

I saw someone post this question before and it never got
answered. I am in a similar situation and would like some
advice on this issue:

If you make $60K a year at a big company, and have a side
business that generates from $500 to $2,000 a year, a sole
propiertership that you use a sched "C" for. You get laid
off at your "real job", the $60k job. Can you still collect
unemployment?. Do you have to close the business to
collect?. - Thanks for any advice on this.
 
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A

Arthur L. Rubin

JP said:
I saw someone post this question before and it never got
answered. I am in a similar situation and would like some
advice on this issue:

If you make $60K a year at a big company, and have a side
business that generates from $500 to $2,000 a year, a sole
propiertership that you use a sched "C" for. You get laid
off at your "real job", the $60k job. Can you still collect
unemployment?. Do you have to close the business to
collect?. - Thanks for any advice on this.
I answered this in the other newsgroup. In general,
if your side business doesn't interfere with your
looking for work, you can collect unemployment.

However, your weekly earnings from the side business
offset (after some deductions) your unemployment
checks.
 
A

A. G. Kalman

JP said:
I saw someone post this question before and it never got
answered. I am in a similar situation and would like some
advice on this issue:

If you make $60K a year at a big company, and have a side
business that generates from $500 to $2,000 a year, a sole
propiertership that you use a sched "C" for. You get laid
off at your "real job", the $60k job. Can you still collect
unemployment?. Do you have to close the business to
collect?. - Thanks for any advice on this.
I answered the question: Can you collect unemployment if you
have a side business? To avoid having you search for it...
here it is:

Andy said:
If you make 60,000 a year at a big company, and have a side
business that generates from -500 - 2,000 a year, a sole
propiertership that you use a sched "C" for. You get laid
off at your "real job", the 60k job. Can you still collect
unemployment?. Do you have to close the business to
collect?. I see on the application for Uneployement in NJ
one of the questions asks "Do you own your own business?",
and there is a box to put the name of it in if you check
yes. - Thanks for any advise on this.
Self-employment by itself does not prevent one from
collecting unemployment benefits. Self-employment may cause
you to fail the test requiring that you be available for
work. Assuming you meet the criteria to collect and you
continue to meet the rules (able to work, available for
work, actively looking for work, etc., etc.) you can collect
benefits. Every state will stop paying benefits if you are
deemed to be in full employment. (Obviously you fail one of
the tests to collect benefits.) States set their own
criteria as to how many hours of work in a week either as an
employee or self-employed removes you from eligibility.
Every state reduces the UI benefits received based on income
earned either as an employee or in self-employment. For the
self-employed, income is net earnings after deducting COGS
and expenses from income. Usually, the formula to reduce
benefits includes some minimum amount of income before your
benefit is reduced. The formula to reduce benefits varies by
state. Naturally, if you earn too much, your benefit can be
reduced to zero.

Net, net: Check with your state Dept. of Labor as to how
they do the computation. Most states post this information
on their websites.
 
J

John H. Fisher

I saw someone post this question before and it never got
answered. I am in a similar situation and would like some
advice on this issue:

If you make $60K a year at a big company, and have a side
business that generates from $500 to $2,000 a year, a sole
propiertership that you use a sched "C" for. You get laid
off at your "real job", the $60k job. Can you still collect
unemployment?. Do you have to close the business to
collect?. - Thanks for any advice on this.
I do recall having responded to this one. This is a state
issue 'n' there are different strokes for different
folks!!=:)

California, for instance, deals with it in the following way
and most states have a formula for dealing with such
situations:

http://caselaw.lp.findlaw.com/cacodes/uic/1300-1308.html

You should be able to get the rules for your particular
state at the following location:

http://www.taxadmin.org/fta/link/FORMS.html

Hope this helps 'n' Good Luck!!=:)

"Jack"-:) - John H. Fisher

"Jack" - John H. Fisher - (e-mail address removed)
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=:)
 
C

Christopher Green

I saw someone post this question before and it never got
answered. I am in a similar situation and would like some
advice on this issue:

If you make $60K a year at a big company, and have a side
business that generates from $500 to $2,000 a year, a sole
propiertership that you use a sched "C" for. You get laid
off at your "real job", the $60k job. Can you still collect
unemployment?. Do you have to close the business to
collect?. - Thanks for any advice on this.
In California, yes. The earnings from self-employment will
have to be reported, and EDD will figure them into your UI
benefit calculation. Don't know about other states.
 
A

Arthur Kamlet

JP said:
I saw someone post this question before and it never got
answered. I am in a similar situation and would like some
advice on this issue:

If you make $60K a year at a big company, and have a side
business that generates from $500 to $2,000 a year, a sole
propiertership that you use a sched "C" for. You get laid
off at your "real job", the $60k job. Can you still collect
unemployment?. Do you have to close the business to
collect?. - Thanks for any advice on this.
This is a state issue - check with your state labor
department or equivalent.

__
Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH
 
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D

David Woods, EA, ChFC, CLU

JP said:
I saw someone post this question before and it never got
answered. I am in a similar situation and would like some
advice on this issue:

If you make $60K a year at a big company, and have a side
business that generates from $500 to $2,000 a year, a sole
propiertership that you use a sched "C" for. You get laid
off at your "real job", the $60k job. Can you still collect
unemployment?. Do you have to close the business to
collect?. - Thanks for any advice on this.
Ask your state labor board.
 
J

JanZtax

I saw someone post this question before and it never got
answered. I am in a similar situation and would like some
advice on this issue:

If you make $60K a year at a big company, and have a side
business that generates from $500 to $2,000 a year, a sole
propiertership that you use a sched "C" for. You get laid
off at your "real job", the $60k job. Can you still collect
unemployment?. Do you have to close the business to
collect?. - Thanks for any advice on this.
The unemployment form you fill out every couple of weeks
asks whether you had self-employment income and if yes, how
much you earned during that 2 week period. If the amount you
earned during that period exceeds the amount of your
unemployment payment, you won't get the payment for that
period. If you had no S-E earnings for that 2 week period,
you'll get your unemployment check.
 
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D

D.F. Manno

I saw someone post this question before and it never got
answered. I am in a similar situation and would like some
advice on this issue:

If you make $60K a year at a big company, and have a side
business that generates from $500 to $2,000 a year, a sole
propiertership that you use a sched "C" for. You get laid
off at your "real job", the $60k job. Can you still collect
unemployment?. Do you have to close the business to
collect?. - Thanks for any advice on this.
You may be eligible for partial unemployment benefits. You
will have to report the side business when you file for
benefits. A lot depends on the specifics of the situation
and the state you are in, so no one here can give you a
definite answer.

If this is not a hypothetical situation, my suggestion is
that you apply for benefits, inform the authorities of the
side business, provide all the information requested, and
see what happens.
 

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