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Declaring income during unemployment, how to freelance without losing unemployment check.

Discussion in 'Unemployment Insurance & Benefits' started by b_billingham123, Jun 29, 2020.

  1. b_billingham123

    b_billingham123 Law Topic Starter New Member

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    Jurisdiction:
    California
    I'm getting laid off tomorrow, and plan on going on unemployment,. I will probably support myself with small freelance jobs until I find another full time job.

    The problem is - unemployment asks you how much money did you make that week, and they remove it from your unemployment check that week. For example, if I make $350 in a freelance gig, and I report that to unemployment, they would remove $350 from you unemployment check.

    Is there any way I can set up my freelancing contracts so that I don't get dinged from unemployment?
     
  2. army judge

    army judge Super Moderator

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    There is no LEGAL way for you to make money ON THE RECORD and NOT have it reported to UI, SS, or the IRS.

    If you get caught DOUBLE DIPPING, you'll regret it when your actions are discovered or someone rats you out.
     
    hrforme likes this.
  3. b_billingham123

    b_billingham123 Law Topic Starter New Member

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    What if I create a freelance contract that says the job only officially completes when the check they pay me is deposited, which will conveniently be 1 day after I start my new job?
     
  4. cbg

    cbg Super Moderator

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    There is no way I know of around the offset, no.

    However, you don't have it quite right. While I don't know offhand what it is in California, every state allows you to earn a certain amount before they start taking an offset. For example,in my state (which is not yours) you can earn up to one third of your unemployment benefit before they take an offset. So in your example,if you earned $350, the first $116.66 wouldn't count and the offset would be $183.34.

    Again, my state is not yours and I don't know what percentage of your earnings CA allows for before they take the offset. But the offset is part of the way the process works.

    That won't do it because you report the earnings when you work them and not when they are paid.
     
  5. b_billingham123

    b_billingham123 Law Topic Starter New Member

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    Maybe I create a contract that says the freelance job only officially concludes in September 1, 2020, presumably after I get get another job so I can keep the money. And that's when I'll deposit the check.
     
  6. army judge

    army judge Super Moderator

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    I am NOT endorsing the following information.
    I am only revealing what has been told to me.

    The only way that SEEMS to work with regularity (achieving the desired result) is to do the work and to be paid in cash.

    There is still risk to doing work for cash, or what some people term "working off the books and being paid in cash under the table".

    What you're thinking about doing isn't worth the risk.

    What if you break a leg while doing the work?

    What if you fall and fracture your skull?

    If you work "off the books", you aren't covered by workers compensation.

    Your little venture could end up costing you more than you might ever be paid.

    The person agreeing to do what you desire could be an undercover operative of the state.

    You might be best advised to seek lawful employment, rather than accepting unemployment.

    The choice is up to you, please choose wisely.
     
  7. flyingron

    flyingron Active Member

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    As you were told on the other site, the certification you make asks if you had work this week that you are paid for or WILL get paid for. You must report it. As you were also told, your assumption of a dollar-for-dollar reduction in benefits is also wrong.
     
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  8. cbg

    cbg Super Moderator

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    What you are trying to do is called fraud. It is illegal. It carries penalties. And while during the current situation it may take a little longer, it WILL be caught. If you are lucky, WHEN it is caught they may only ask you to repay the benefits that you obtained fraudulently, but they have the option of criminal prosecution.

    Allow that to sink in for a bit.
     
    PayrollHRGuy and hrforme like this.
  9. PayrollHRGuy

    PayrollHRGuy Well-Known Member

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    Let me explain a possible outcome to your plan if you are caught even if you aren't criminally prosecuted or forced to repay.

    You go back to your job in September and things don't work out. The economy forces another layoff or the employer closes. You will have been disqualified for MANY MANY periods and you won't get UI.
     

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