Unemployment Insurance Question

[ceciliarhodes]

I am on California Unemployment Insurance with EDD. My partner and I have a part time job as resident managers for an apartment complex. The management company wants me to report this legitimately to EDD and wants me to report that I work a min. of 20 hours at $10 per hour just for my availability as resident manager. However we have told them it is fine to just send the check to my partner in his name. Then we verified that only he will be paying taxes on what we are paid. We wanted to arrange it so he is the only one "working" and I'm not working, just living here. The office insisted that if we share this unit, we share the job and I report those hours. So I've been doing that. But if he's the only one paying taxes on the income and mine isn't being reported as income at all, is it lawful for me to report that as work, even though I won't be the one paying taxes?

The next question is then what should I do?
Can I report that I'm not working any hours since there are no hours are being reported to the IRS? How can we deal with this?

 

[army judge]

You might want to discuss this with EDD.

They will probably determine that you're being paid $200/week in the value of the apartment (20*$10/HR=$200/wk). Eventually, the IRS will catch up to you with taxes, as will the California income tax authorities.

You stand to potentially lose your UI payments and possibly owe them for the monies they've previously paid you.

I suggest you contact EDD,IRS, and CA income tax tomorrow. The apartment considers allowing you to live rent free as a part time job. They are paying you by letting you live rent free. You potentially are developing some big problems and maybe governmental debts!