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1099 earnings and unemployment in Massachusetts

Discussion in 'Employment, Labor, Work Issues' started by smaro436, Feb 19, 2010.

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  1. smaro436

    smaro436 Law Topic Starter New Member

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    Hi,

    Here's my question. I have been told that contract work that generates a 1099 does not have to be claimed as earning while collecting unemployment.

    Is this true. Can I collect my unemployment benefits and do contract work and not have to report it as earnings? Does DUA only consider earnings that produce a W2?

    I get so much conflicting info and it is very difficult to get through to DUA.

    Thanks I look forward to your reply.

    Regards,
    Shirley
     
  2. Patricia_Young

    Patricia_Young New Member

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    No, that is wrong, wrong, wrong.
     
  3. smaro436

    smaro436 Law Topic Starter New Member

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    OK, I guess you told me! So what is right, right, right?

    Do you know Massachusetts unemployment law?
     
  4. cbg

    cbg Super Moderator

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    I do. And it might be true, in some circumstances.

    When you asked the DUA this, what did they say?
     
  5. smaro436

    smaro436 Law Topic Starter New Member

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    I can't get through to DUA that's why I've resorted to asking here.

    Like I said I hear conflicting reports. I do know if you work part-time and your are still not employed full time by the end of your benefit year, they will recalculate your benefit based on the part time earnings. I know someone that got their benefit reduced to only $80 a week.
     
  6. Patricia_Young

    Patricia_Young New Member

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    So why do you think you don't have to?
     
  7. army judge

    army judge Super Moderator

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    http://www.mass.gov/?pageID=elwdter...=dua_weekly_claim_working_part_time&csid=Elwd


    http://www.massresources.org/pages.cfm?contentID=38&pageID=17&subpages=yes&dynamicID=605
     
  8. smaro436

    smaro436 Law Topic Starter New Member

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    I know all this. I was just inquiring about earnings that generate a 1099 form rather than the usual W2.
     
  9. cbg

    cbg Super Moderator

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    And I asked you a question, too.
     
  10. smaro436

    smaro436 Law Topic Starter New Member

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    and I answered you: I can't get through to DUA that's why I've resorted to asking here.

    Like I said I hear conflicting reports. I do know if you work part-time and your are still not employed full time by the end of your benefit year, they will recalculate your benefit based on the part time earnings. I know someone that got their benefit reduced to only $80 a week.
     
  11. army judge

    army judge Super Moderator

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    If you have earnings, they must be reported.
    If you fail to report your earnings, they will eventually discover it.
    When they do, you'll be penalized.
    If you do not report earnings, your UI will not stop right away.
    But, once they receive the data from the person giving you the 1099, they'll penalize you.


    Think of it this way:
    If you get receive earnings as a W2 employee, that is reported to the IRS.
    If you receive earnings via a 1099, that is also reported to the IRS.
    Earnings derived via W2 or 1009 are still earnings.

    You are required to report any earnings.
    The state will decide if those earnings affect your UI payments.
     
  12. smaro436

    smaro436 Law Topic Starter New Member

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    Thanks, That's what I was thinking too. But you know there is so much misinformation out there.
     
  13. cbg

    cbg Super Moderator

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    Let me offer a suggestion. I am also in MA and very familiar with the DUA system.

    Don't even try to get through on the phone if you need to talk to them. There are walk-in centers all over MA. Go to one. If you time it right, you can be in and out in ten minutes. Even if you time it wrong and have to wait, they have job listings, information on training classes, computers where you can work on your resume, all kinds of things you can do while you're waiting, AND it can count as a job contact for your log if you use the time right.

    Much, much less frustrating than hanging on the phone for hours.
     
  14. smaro436

    smaro436 Law Topic Starter New Member

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    Yup, I know. I've been to the center a few times. The next time I'm there for a workshop I'll do that. I just thought someone would know here.

    Thanks
     
  15. cbg

    cbg Super Moderator

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    And for the record, I have also been told, BY THE PERSON TAKING MY CLAIM, that 1099 income did not count.
     
    smaro436 likes this.
  16. Patricia_Young

    Patricia_Young New Member

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    All I can say to that is :eek::eek:
     
  17. smaro436

    smaro436 Law Topic Starter New Member

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    I second that sentiment!!!!!
     

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