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Converted from employee to 1099, eligible for unemployment? New York

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  • Converted from employee to 1099, eligible for unemployment? New York

    A company has terminated all its permanent employees, and offering us to sign up a contract with them now as a part-time independent contractors, with hourly pay, working on 1099. I had been working for this company for a few years. Besides all the other considerations, I wonder if I will be eligible for an unemployment benefits in case if in 2-3-4 months this employer fires me, me being on 1099 at that point?
    I appreciate your replies

  • #2
    If you are genuinely an IC you are not eligible for UC. You can try and make a case that you weren't really an IC, but an employee. The state ultimately decides if you get benefits or not.
    I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.

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    • #3
      I thought we already established in your other thread that refusing the offer was in your best interest (and also your best bet at receiving unemployment)
      The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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      • #4
        and any money paid as an IC doesn't count as UI wages because the contracting firm is not paying into UI for you.

        Each state has a lookback period which is usually 4 rolling quarters not including the current one. The longer you wait to make a claim the less prior employee income you will have in the calculation.
        Last edited by hr for me; 01-05-2016, 06:33 PM.

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        • #5
          Originally posted by cbg View Post
          I thought we already established in your other thread that refusing the offer was in your best interest (and also your best bet at receiving unemployment)
          Unemployment is still an option. At this point the owner has came up with a better hourly rate, bringing the part-time weekly pay he offers higher (not by much, still) than what the unemployment pays. I am still not there not here, not employed not on unemployment. Just waiting.

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          • #6
            Previous thread just for reference:


            http://www.laborlawtalk.com/showthread.php?t=317725
            Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

            Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

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            • #7
              Originally posted by DianaNY View Post
              Unemployment is still an option. At this point the owner has came up with a better hourly rate, bringing the part-time weekly pay he offers higher (not by much, still) than what the unemployment pays. I am still not there not here, not employed not on unemployment. Just waiting.
              And the longer you wait to file, the better off it is for this "employer". Your lookback period will change and benefits aren't retroactive. Plus there is the one week waiting period. You know you have drop in pay and a drop in hours. It sounds like he is playing a game so you won't make a claim and raise his tax rate just long enough that when you do eventually file that you won't have any UI wages to file for unless you also work elsewhere in the meantime.

              It would be better to file and then work the part-time hours and just report those wages to the UI department than to not make a claim at all. Sure you might get $0 in UI benefits right now, but it might keep the claim open and might lock in your wages now rather than after you've had a few months/quarters with NO reported UI wages (again contract pay doesn't count). The one thing I am unsure of is if you have a week where you get no benefits whether that counts against the maximum number of weeks that you can get benefits.

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              • #8
                My previously planned course of action was to refuse to sign this 1099 contract the reason being that offered hours and hourly pay were lower than if I would go for unemployment. However the situation changes every day. Now that the employer has increased the hourly rate, it looks like a better deal monetary than unemployment. I would get more money working 3 months on this contract than I would get from 6 months of unemployment. If this work will last 3 months, that is. At this point I am inclined to sign. My worry is that if the employer decides to give up in a couple of months, will I still be eligible for unemployment then.

                So far I am sitting home doing nothing since Jan 1. I probably should apply for unemployment while waiting for the contract. And do it TODAY. Here is why: 'You should file your claim for unemployment insurance within the first week of being completely or partially unemployed. If you wait longer, you can potentially lose your benefits." Then if I work for 4 or more days or earn over $405/week, I will skip UI that week.

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                • #9
                  Originally posted by hr for me View Post
                  The one thing I am unsure of is if you have a week where you get no benefits whether that counts against the maximum number of weeks that you can get benefits.
                  I don't know this either, but this kept me from filing for UI sooner. I am afraid that I can "use up" my 26 weeks being paid $0 because of the work on the contract. But I cannot wait any longer for contract, because according to the law, "You should file your claim for unemployment insurance within the first week of being completely or partially unemployed. If you wait longer, you can potentially lose your benefits. " I got to do it today than. Oh well...

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                  • #10
                    Your UI claim lasts for a year. If you file a claim, and then work for 26 weeks, you still have 26 weeks of benefits waiting for you.
                    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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                    • #11
                      In any case, your employer has GOT to be in serious financial trouble, and I agree with hr for me, I think he is playing a game trying to string you along until you are no longer eligible for UI. I have serious doubts that the part time hours will last long after you sign this "contract" (which, we've already covered is probably illegal anyway, and puts you on the hook for self-employment tax).

                      Best advice-if it were me I would have filed already regardless of what he says or promises. There is almost no chance the pay method he's proposing is legal, and if he's willing to cheat the government, he will probably cheat you too.

                      Comment


                      • #12
                        Originally posted by ferretrick View Post
                        In any case, your employer has GOT to be in serious financial trouble, and I agree with hr for me, I think he is playing a game trying to string you along until you are no longer eligible for UI. I have serious doubts that the part time hours will last long after you sign this "contract" (which, we've already covered is probably illegal anyway, and puts you on the hook for self-employment tax).

                        Best advice-if it were me I would have filed already regardless of what he says or promises. There is almost no chance the pay method he's proposing is legal, and if he's willing to cheat the government, he will probably cheat you too.
                        Agree completely. In your situation I would also have already filed - and (I bet) so would most of the experts here.

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                        • #13
                          Will do.

                          Will I need any papers from this employer to file for UI, does anyone know? I only have a "transition" email.

                          Comment


                          • #14
                            You don't need anything from the employer to file.
                            I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.

                            Comment


                            • #15
                              Done! Applied for UI.

                              Comment

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