I got laid off last november, and I claimed Unemployment Insurance
benefit. I registered my own company (C-corporation) in February. I
never get paid by my own company. The company does not have any
business activity until May. Since then, the company has some small
revenue, but it will not likely generate any net income for this year
after all cost deduction. I kept claiming UI benefit until recently.
My questions are:

1. In this case, will it be considered Unemployment Insurance
fraudulent?
2. Can I be categorized as self employment without income, so I am
still eligible for UI benefit?
3. Or because there is lack of work in my own company, can I be
categorized as part-time worker of my own company, so that I am still
eligible for UI benefit for the days I did not work? What kind of
proof I have to show to Labor Department if required?

I received a letter from Labor Department asking me to fill out a form
because I stoped claiming UI benefit for over a month when I traveled
abroad before I resumed to claim UI benefit again in late August. How
shall I answer them?

Q1. Name of most recent employer? Shall I say my own company or just
simply say "SELF EMPLOYMENT"?
Q2. Last date worked? - how do I define the last date worked? just any
day that I didn't claim UI benefit for?
Q3. Do you have any business or are you engaged in any other activity
which brings in or may bring in income? - Shall I say "YES"? Seems I
should.
Q4. Does this claimant work on part-time, on call, or as needed basis?
- I think I shall say "YES".
Q5. The claimant is unemployed because: ? - I believe "LACK OF WORK"
is the case (answer).

I really want to know how shall I deal with this matter, which looks
very serious to me. What shall I do really?

1. Shall I enclose a letter with the filled form to explain the whole
thing?
2. What will happen to me if Labor Department does decide it is
Unemployment Insurance fraudulent?
3. Can I ignore this letter? I do not need to further claim UI
benefit, although there is one week benefit check held in labor
department.
4. Shall I seriously seek for legal assistance, such as to hire a
lawyer to deal this thing?

Your help is greatly appreciated! I really want to do something to
make up before I get into big trouble due to my ignorance. Thanks
again.

TW

Thomas Waung wrote:
I got laid off last november, and I claimed Unemployment Insurance benefit. I registered my own company (C-corporation) in February. I never get paid by my own company. The company does not have any business activity until May. Since then, the company has some small revenue, but it will not likely generate any net income for this year after all cost deduction. I kept claiming UI benefit until recently. My questions are: 1. In this case, will it be considered Unemployment Insurance fraudulent? 2. Can I be categorized as self employment without income, so I am still eligible for UI benefit? 3. Or because there is lack of work in my own company, can I be categorized as part-time worker of my own company, so that I am still eligible for UI benefit for the days I did not work? What kind of proof I have to show to Labor Department if required? I received a letter from Labor Department asking me to fill out a form because I stoped claiming UI benefit for over a month when I traveled abroad before I resumed to claim UI benefit again in late August. How shall I answer them?

Taking a "vacation" from your duties of looking for work may be grounds
for a further suspension or termination of unemployment benefits,
depending
on your state. So your questions may not be relevant.
Q1. Name of most recent employer? Shall I say my own company or just simply say "SELF EMPLOYMENT"?

Your own company, IF you are actually an employee (meaning you
file the appropriate withholding and employment tax returns). Otherwise,
just list your last employment.

If you don't know whether you're an employee, you probably aren't.

It would be different if it were a partnership or LLC or LLP.
Q2. Last date worked? - how do I define the last date worked? just any day that I didn't claim UI benefit for?

As appropriate. See the answer to Q1.
Q3. Do you have any business or are you engaged in any other activity which brings in or may bring in income? - Shall I say "YES"? Seems I should.

Actually, probably not. C-Corp dividends, which is what you would
probably receive if there were any income, aren't counted.
Q4. Does this claimant work on part-time, on call, or as needed basis? - I think I shall say "YES".

I think not.
Q5. The claimant is unemployed because: ? - I believe "LACK OF WORK" is the case (answer).

Whatever your November situation was.
I really want to know how shall I deal with this matter, which looks very serious to me. What shall I do really? 1. Shall I enclose a letter with the filled form to explain the whole thing?

No.
2. What will happen to me if Labor Department does decide it is Unemployment Insurance fraudulent?

You could be fined a multiple of your weekly benefit, and be
ineligible for unemployment until you have qualified under a
new job, in the worst case.
3. Can I ignore this letter? I do not need to further claim UI benefit, although there is one week benefit check held in labor department.

Probably not.
4. Shall I seriously seek for legal assistance, such as to hire a lawyer to deal this thing?

I can't answer that. There may actually be a colorable claim
of criminal fraud, in which case you need a lawyer.

But I'm not a lawyer, and I don't know what state you're in.

I do not give legal advice as I am not attorney. Legal advice is obtained
from hiring an attorney.

Thomas wrote:
I got laid off last november, and I claimed Unemployment Insurance benefit. I registered my own company (C-corporation) in February. I never get paid by my own company. The company does not have any business activity until May. Since then, the company has some small revenue, but it will not likely generate any net income for this year after all cost deduction. I kept claiming UI benefit until recently. My questions are:
1. In this case, will it be considered Unemployment Insurance fraudulent?

Probably not. As you can show that your company had not produced enough
earnings to give you an income.
2. Can I be categorized as self employment without income, so I am still eligible for UI benefit?

Possibly.
3. Or because there is lack of work in my own company, can I be categorized as part-time worker of my own company, so that I am still eligible for UI benefit for the days I did not work? What kind of proof I have to show to Labor Department if required?
I received a letter from Labor Department asking me to fill out a form because I stoped claiming UI benefit for over a month when I traveled abroad before I resumed to claim UI benefit again in late August. How shall I answer them?

Unemployed. State you were overseas and unable to make contact.
Q1. Name of most recent employer? Shall I say my own company or just simply say "SELF EMPLOYMENT"?

The last employer to give you an "earned income". The same one your benefits
derive from.
Q2. Last date worked? - how do I define the last date worked? just any day that I didn't claim UI benefit for?

Same as originally.
Q3. Do you have any business or are you engaged in any other activity which brings in or may bring in income? - Shall I say "YES"? Seems I should.

Only if the business is somehow registered with the state answer yes.
Otherwise answer no.
Q4. Does this claimant work on part-time, on call, or as needed basis? - I think I shall say "YES".

Only if that work produces "earned income", which is taxable.
Q5. The claimant is unemployed because: ? - I believe "LACK OF WORK" is the case (answer).

Company lay off.
I really want to know how shall I deal with this matter, which looks very serious to me. What shall I do really?
1. Shall I enclose a letter with the filled form to explain the whole thing?

Wouldn't hurt.
2. What will happen to me if Labor Department does decide it is Unemployment Insurance fraudulent?

Depends on the state laws and the severity of the fraud. If you were
acquiring a regular paycheck from another business and still claiming UI,
then that would be fraud and you would be held liable.
3. Can I ignore this letter? I do not need to further claim UI benefit, although there is one week benefit check held in labor department.

No. They could stop your benefits for ignoring it.
4. Shall I seriously seek for legal assistance, such as to hire a lawyer to deal this thing?

Not until they actually decide to press charges.
Your help is greatly appreciated! I really want to do something to make up before I get into big trouble due to my ignorance. Thanks again.
TW

Dear Arthur and Richard,

Thank you very very much for help! I was a bit nervous when I received
the letter, but now I feel much better after read your answers. I
really appreciate your help!

Now it seems to me that the most important question is if "I AM AN
EMPLOYEE" of my own company, or if I am self employed.

I got laid off from a company in NYC, so I claim the UI benefit from
New York state. I live in New Jersey and registered my own company in
New Jersey. In the company's filing record, I was listed in the
"Contact Information" clause as Registered Agent, and in the
"Management" clause as one and only initial Board of Directors. I used
my home address as the company's address. And I did say I am the
president of the company when I opened the company's bank account.
Other than that, nothing can show I am an employee of my own company -
I don't get paid by the company. I didn't even get any reimbursement
yet from my own company for all business cost. But if I am not an
employee of my own company, then there is no employee in the company.
But the company does generate some earnings (it is for import/export
business, there is several transactions already - paid by customers,
and payments sent to manufacturers). Wouldn't it be weird for a
company to generate earnings with nobody work for it? So would I be
treated as an employee of my own company or at least part-time
employee? Can I claim that I only work for my own company in spare
time? The real case is that I only work for my own company for very
little time. But it will be very hard to prove, because sometimes I do
need to make phone calls during business time.

So if I am not employed by my own company, then I am certainly
eligible for claiming UI benefit. And there shall be no other issue
with the letter - my benefit might be "eliminated" or "suspended" due
to my long-time "vacation", but there shall be nothing more than that.

Even if I am considered partially employed by my own company, I shall
be still eligible for UI benefit due to lack of work in my own
company. It does not need a full-time employee for my own company. I
only worked for my own company as needed basis. So I shall be able to
claim UI benefit for the days I didn't work for my own company, which
is exactly what I have thought when I claimed the benefit weekly.

I will still have a problem if I am considered an employee of my own
company even if I don't get paid for my work so far. And the inquiry
will need to be answered totally differently for whether I am not
employed by my own company or partially employed by my own company or
if I am self-employed.

Your inputs will be greatly appreciated! Thank you.

TW

Thomas Waung wrote:

I'm not a lawyer but I have collected unemployment so here's my take.

I got laid off from a company in NYC, so I claim the UI benefit from New York state. I live in New Jersey and registered my own company in New Jersey. []I don't get paid by the company. I didn't even get any reimbursement yet from my own company for all business cost.

This is your answer right there. If you are not getting paid, you have no
fraud because there is no income. As long as you continue to look for
work and don't refuse any because of whatever you do for this corporation
of yours, there is no fraud and there is no need to tell the state
anything.

You're not refusing work and you're not getting paid, therefore there is
no fraud.

Since you're not filing and paying unemployment taxes by your corporation
you're not an employee. You don't exist as an employee as far as the
state is concerned.

The only thing the state is concerned about is either that you are failing
to look for work or you are receiving money as wages that you are not
declaring. If neither condition exists, there is no fraud and there is no
issue to worry about.


--
Paul Robinson "Above all else... We shall go on..."
"...And continue!"
"If the lessons of history teach us anything it is
that nobody learns the lessons that history teaches us."

I'm not a lawyer but here's my opinion.

On the issue of your not filing while on vacation, you just say that you
weren't looking for work during those weeks so you didn't file. No need
to explain why. This means that you will be ineligible for those weeks.
No fraud is involved because you didn't make any untruthful claims. But
you can simply refile and your weeks start with the current weeks that you
actually do claim you are looking for work.

--
Paul Robinson "Above all else... We shall go on..."
"...And continue!"
"If the lessons of history teach us anything it is
that nobody learns the lessons that history teaches us."