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  • May 28, 2009, 07:03 AM
    wadd
    1099 and unemployment
    Hello, I have been working for this company about 3 yrs. I started on the books. The last 3 months or so I have been switched to 1099 pay. I read another Q&A that said I can’t collect unemployment if I get laid of now that I’m 1099. If I get laid off am I not eligible to collect for the previous 32 months of work that was on the books?
    Thanks
    Joe
  • Jun 3, 2009, 11:17 PM
    Esmeralda777
    I don't think they can do that legally unless something major changed about your job responsibilities. If you were an employee and then they changed you to 1099, sounds like they are trying to get out of paying your social security. That does not seem right. Seems like if they are doing 1099 you are already not employed, so you could not be laid off, just consulting agreement terminated. -- big question to me would be if they could legally get by with changing you to 1099 to start with.
  • Jun 16, 2009, 09:24 AM
    Utah CFO
    First, the previous poster is correct. Unless your duties have materially changed or you have created your own business providing these same services to other companies as well, you would still be defined as an employee and your employer charged by the IRS and required to pay both sides of your social security as well as other payroll taxes. That is, if the IRS finds out. That is up to you.

    As to your question about unemployment, you qualify for unemployment based on the work you did when you were being paid as an employee. This is a part of the look-back period used in determining your unemployment qualification. However, being classified as an independent contractor now does exclude you from unemployment compensation on your current payments. Your "employer" is not paying into the Unemployment fund for you and the Unemployment people must conclude that you are in business for yourself and not subject to the Unemployment tax. (Owners of small businesses are generally exempt from this tax. Only when they have employees and include themselves as an employee do they pay the tax.) Hope this helps.

    *** Fr Chuck **** I have to add a note, this info is so bad and so incorrect please do not go by it.

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