I have recently transitioned from a full time employee to a 1099 contracted employee. Unemployment an option?
I have recently transitioned from a full time employee to a 1099 contracted employee. Unemployment an option?
My company has recently terminated 6 of their 9 employees. We have been give the option to be 1099 contractors. My question is, are we then eligible for unemployment benefits?
Answers:
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v b: The termination might count for unemployment--you'd have to talk to the unemployment people. If you begin to collect unemployment, you must report any money you make, so week's you collect money as a contractor would count against you. Keep in mind, the IRS and the labor boards frown on companies who change people to contractors without any change in job description, work control, ad nauseum. If you are paid by the hour, follow their directions, they supply the tools, etc, they are cheating you by calling you a contrator. If they pay you the same as the people they kept, they are really cheating you...if they only want to pay you when you work, they can, but you deserve 50% more money and the ability to make a profit. http://www.irs.gov/pub/irs-pdf/p1779.pdf http://www.irs.gov/businesses/small/article/0,,id=99921,00.html and also look at ss-8, form 8919,
2009-01-20 08:39:57
v b: The termination might count for unemployment--you'd have to talk to the unemployment people. If you begin to collect unemployment, you must report any money you make, so week's you collect money as a contractor would count against you. Keep in mind, the IRS and the labor boards frown on companies who change people to contractors without any change in job description, work control, ad nauseum. If you are paid by the hour, follow their directions, they supply the tools, etc, they are cheating you by calling you a contrator. If they pay you the same as the people they kept, they are really cheating you...if they only want to pay you when you work, they can, but you deserve 50% more money and the ability to make a profit. http://www.irs.gov/pub/irs-pdf/p1779.pdf http://www.irs.gov/businesses/small/article/0,,id=99921,00.html and also look at ss-8, form 8919,
2009-01-20 08:39:57