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    lew34's Avatar
    lew34 Posts: 1, Reputation: 1
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    #1

    Jul 1, 2010, 12:07 PM
    Unemployment compensation Florida... From W2 to 1099
    Recently my employer of 3yrs decided to shut down their trucking company and laid off all of their drivers, who were W2'd, but offered me a position in the office working for a different company as a 1099'd truck broker. I will not receive any compensation until I develop my own accounts which could take some time. Am I able to claim unemployment compensation here in Florida? Also being 1099'd when should I report earning if and when I do start to receive compensation... quarterly or at the end of the year?
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
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    #2

    Jul 2, 2010, 04:41 AM
    Quote Originally Posted by lew34 View Post
    Am I able to claim unemployment compensation here in Florida? Also being 1099'd when should I report earning if and when I do start to receive compensation... quarterly or at the end of the year?
    Hello lew:

    In order to collect unemployment, you have to be seeking work. Since you're going HAVE work, you're not eligible.

    As a self employed individual, you report your earnings at the end of the year.

    excon
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #3

    Jul 2, 2010, 05:48 AM

    Excon is correct, when you certify your weekly benefit, you have to state that you were ready and willing to work. Since you will not be you can't collect.

    You should be filing estimated taxes quarterly. If you don't and you are underwithheld, you will be subject to a penalty. They usually give you some leeway on your first year as a contract worker. But afterwards you have to get it right.
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
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    #4

    Jul 2, 2010, 06:22 AM

    Hello again, lew:

    Scott is right too. I was wrong - kind of. So, I looked it up.

    When you start making income enough to result in a tax liability of at least $1,000, THAT'S when you'll be required to pay your taxes quarterly.

    But, when you had NO tax liability due the previous year from self employment (and that's you), you are NOT required to pay estimated taxes the following year. So, for the first year, at the very least, you won't have to estimate your taxes.

    On a personal note, selling stuff on a straight commission, where you will be required to develop your own accounts from the git go, BEFORE you make a nickel, would be a very hard slog for even a seasoned sales person - especially one who had a mortgage, and kids to feed.

    Don't get me wrong. It's GOOD that you have a job. Hopefully you can make a lot of money. But, as you're finding out, there are tradeoffs.

    excon
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
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    #5

    Jul 2, 2010, 07:06 AM
    Quote Originally Posted by excon View Post
    Hello lew:

    In order to collect unemployment, you have to be seeking work. Since you're going HAVE work, you're not eligible.

    As a self employed individual, you report your earnings at the end of the year.

    excon
    I disagree. You can be seeking work and, if you are making a lesser amount than you were making before, you would qualify. If you receive income you would report it, along with your efforts to find full-time work bi-weekly.

    You would report your income when you receive it - on a cash basis.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #6

    Jul 2, 2010, 08:03 AM
    Quote Originally Posted by AK lawyer View Post
    I disagree. You can be seeking work and, if you are making a lesser amount than you were making before, you would qualify. If you receive income you would report it, along with your efforts to find full-time work bi-weekly.

    You would report your income when you receive it - on a cash basis.
    This is only partially correct. You can be doing part/time or freelance work and collect UIB. But, as I stated, each week you certify that you were ready for a regular job during that week. If you are working and not actively looking for another job, then you would not be eligible.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,302, Reputation: 7692
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    #7

    Jul 2, 2010, 09:41 AM

    I will sum this up a bit,

    1. you can file for unemployment
    2. you will have to be looking for full time work
    3 you will have to report any earnings you make
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
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    #8

    Jul 2, 2010, 06:10 PM
    Quote Originally Posted by ScottGem View Post
    ... If you are working and not actively looking for another job, then you would not be eligible.
    I don't think we disagree here. You have to be making an active effort to find a job. I said that. If I did not say "look for work every week", I should have. But finding a job does not have to be a full-time job in itself.
    twinkiedooter's Avatar
    twinkiedooter Posts: 12,172, Reputation: 1054
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    #9

    Jul 2, 2010, 06:24 PM
    Quote Originally Posted by lew34 View Post
    Recently my employer of 3yrs decided to shut down their trucking company and laid off all of their drivers, who were W2'd, but offered me a position in the office working for a different company as a 1099'd truck broker. I will not receive any compensation until I develop my own accounts which could take some time. Am I able to claim unemployment compensation here in Florida? Also being 1099'd when should I report earning if and when I do start to receive compensation... quarterly or at the end of the year?
    File for unemployment. Claim each week that you don't make any money at your new "job". You won't be in trouble as you will still be looking for other work. If you don't file for UE you and your family will do worse than starve, you'll starve without a roof over your heads. Once you do start earning money, then of course, properly report your earnings. You can still file your weekly claim but report your weekly earnings. If your weekly benefit is more than your reported wages you will get the difference paid to you. But if you make more than you weekly benefit that week the difference won't be paid. More than likely you will be able to continue to collect UE for a few months even after you've started to make some money. But when you start making more money than your weekly benefits you may be/probably be chopped off. Pay your taxes at the end of 2010 when you file your yearly taxes. Part will be W-2'd and part will be 1099. Keep close tabs on your expenses and keep receipts. Good luck with being a freight broker. It's a cutthroat business but money CAN be made and lots of it. Go out and personally visit customers and get their business if possible and call, call, call and you will do well indeed.

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