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Can you get UI in New York when all you have is 1099? New York

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  • Can you get UI in New York when all you have is 1099? New York

    I'm a freelance graphic designer, working with the same company for 3+ years, and receiving a 1099 at the end of each year. I haven't been with them (and the owner is a close personal friend) since August because of lack of work. I began to file for unemployment today and the person I was on the telephone with at NYSDOL said that a 1099 was okay to put a claim through. I mentioned it to the owner of the company I worked with that NYSDOL might get in touch with him and he said that he wouldn't answer the phone because it could create problems for him. I'm in a bind here, because I have a close personal relationship with the person I did freelance work for, but I'm having a difficult time landing any kind of job, either in or out of my industry, and very much need the unemployment. If I continue the process of filing the unemployment claim, am I going to get my friend in trouble?

    Also, I received unemployment benefits after a 2005 layoff (W2 employee). I began working with my friend's company in 2006 after the unemployment ran out. With the new unemployment benefit extensions, could I file with an extension from that layoff?
    Last edited by neese; 10-08-2009, 04:01 PM. Reason: Needed to add some background info.

  • #2
    I cannot speak for NYS, so this will be a real soft answer.

    Employers file quarterly wage reports with the state. This includes the employee's name, SSN, wages and related tax payments. But this happens for employees only. Independent contractors (1099) are supposed to be independent businesses who are not employees, not reported on the quarterly reports, and in theory not eligible for UI.

    If you talk to NYS, you are claiming that you are really an employee after all, that your employer misclassified you, and that your employer failed to pay UI taxes to due the state. If NYS agrees with you, then the employer is in a certain amount of trouble. NYS will review your status, they may or may not agree with your claim that you are really an employee, they may or may not audit the employer, and they may or may not reclassify you as an employee. Whatever they do will not happen quickly.

    I am not saying to file or not file. I am saying that at best you will get NYS to review your status, and once NYS has the ball, it is completely their decision what they choose to do with it.


    Past that, I have no answers for you.
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)


    • #3
      Okay, thank you for the info.