If you are paid as a contractor how is your unemployment insurance affected. If you lose your job are you still eligible for unemployment?

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As a "contractor" you get a 1099 and you are considered "self employed" as your employer does not take out any taxes from your check. To be eligible for unemployment you must be a W-2 employee who has taxes withheld from your check and your employer makes the matching contributions tax wise. To answer your question, NO.

No, a person paid by 1099 is not a employee, there is no workers comp, no unemployment insurance, no taxes withheld,

You are considered your own business and self employed.

So no you can not get unemployment, since you are not fired, you went out of business.
** from the legal standpoint