How Do The Unemployment Insurance People Determine If You Are “self-employed”?
I got fired from my job and increases unemployment. Everything was going well until I found work in two days. I volunteered to work on my application form and lack of insurance called a "freelance" job.
What is crazy enough that because of these two days of work, they change my status of "self", which means I lose all benefits are taken into account. So basically, I might lose my unemployment insurance, because two days of work I have been honest. Anyone who knows anything about this? What should I tell them to keep my status? (It) in California, in passing.
You have to tell them and sign..
First of all, you must understand that Unemployment Insurance (UI) sees things in black and white. Either you are an employee or you are self employed; self employed meaning you are independently established in your own business. UI does not consider a middle ground. So, by calling the service you performed “free lance” UI is forced to make a choice; unfortunately, the term “free lance” sounds an awful lot like self employment.
However, this does not mean you should be denied your benefits. Different terms have different meanings for everyone and it is contingent upon you to make it clear to your UI representative what you meant by the term “free lance”. An example: consider someone who has traditionally worked as an employee of a construction company. During a period of unemployment this individual is paid to build a fence for his neighbor, while in the mean time he continues to actively seek employment with a new construction company. Because the individual’s neighbor is not a bonafide employer, this situation falls into the grey area. Nevertheless, the individual’s UI rep should understand that he accepted the offer of work due to the individual’s compulsion to work and to earn money. Weighed in conjunction with a legitimate search for covered employment, the UI rep should not make a determination that the individual is self employed. The scenario changes, though, if this individual solicits to build fences for all his neighbors.
Your UI rep is going to weigh how much time you spend seeking covered employment with how much time you spend seeking what you call “free lance” work. If there is any appearance that a good portion of your time is devoted to seeking and accepting free lance work, your UI rep has reason to make a determination of self employment. If this is not the case in your situation, make sure your UI rep understands why you accepted this type of work. UI benefits are not sufficient to sustain a livelihood, so you may point out that you are not in a position to refuse any offer of work wether it be covered employment or not. Draw your reps attention to your work search; show that despite accepting temporary work you have continued to actively seek covered employment. Do you have a business license? Do you advertise your services? Do have business cards? Do you regularly file a schedule C or SE with the IRS? If the answer is no to all these questions, this is evidence that you have not taken steps to become self employed. Good luck!