View Full Version : Do I qualify for unemployment if I receive a 1099?
Sheba6
Nov 15, 2012, 02:22 PM
Do I qualify for unemployment benefits if I receive a 1099 from my employer?
JudyKayTee
Nov 15, 2012, 03:03 PM
If you receive a 1099 he is NOT your employer and you are NOT his employee.
You are an independent contractor. Your employer does not pay benefits for you; therefore, you cannot receive benefits.
excon
Nov 16, 2012, 05:12 AM
Hello S:
It's true. You cannot get unemployment benefits if you're self employed..
BUT, some employers FORCE their employees to be contractors, so as to SAVE the employer money.. He CAN'T do that. If you ARE an employee by EVERY measure except how you're paid, you ARE an employee, and I would make that claim to the unemployment office.
excon
Fr_Chuck
Nov 16, 2012, 05:13 AM
1099 workers are considered self employed. They do not get workers comp, have no insurance held out of check ( you will often owe more taxes at tax time) and do not get unemployment.
AK lawyer
Nov 16, 2012, 07:26 AM
On the other hand, depending on the state, it may be possible to claim that the employer has been evading it's employment tax responsibilities by filing 1099 forms and is therefore responsible for workers' comp.
JudyKayTee
Nov 16, 2012, 08:44 AM
The question is about Unemployment. I didn't answer Workers' Comp and the requirements of the various States.
Yes, if the "independent contractor" 1099 idea is a scheme to avoid paying taxes at least in NY the "independent contractor" has to be without part in the fraud in order to report it and collect benefits. Otherwise, the "independent contractor" is likewise guilty of partaking in the benefits of the scheme.
I don't know anyone who wouldn't realize taxes aren't being withheld; therefore, SOMETHING is amiss. This is an example of taking the easy way (no withholding taxes or other deductions equal higher take home) where the "scheme" is a good one right up until the "independent contractor" no longer has work. Then it's not such a good idea.
I'm not saying no one will investigate the claim that the "independent contractor" was, in fact, an employee who was misclassified for gain. I'm saying that I don't see that the "independent contractor" is an innocent party.
joypulv
Nov 16, 2012, 08:52 AM
I've known many young men starting in the building trades who had no clue that they were going to owe taxes and that they couldn't collect unemployment.
And yes, many if not most of those who hired them were illegally paying them as subs.
JudyKayTee
Nov 16, 2012, 01:47 PM
Not disgreeing, Joy, but I find it odd that anyone would be "hired" and paid by check (assuming it isn't off the books because there's a 1099 involved) and not question why no taxes or other deductions were made.
I've been called into these matters by the "employer," and I have never once found this to be a pull-the-wool-over-the-eyes-of-the-"sub" situation. Do people understand the independent contractor status? Probably not. Does that mean that the "employer" is taking advantage? Not in all cases, no. I note that this person has received a 1099 (presumably for 2011) and now is concerned, presumably paid taxes at that time and realized that this is an independent contractor situation and didn't have a concern until the job ended.
OP can certainly report the situation. I'm just not sure it's going to get him/her unemployment benefits.