Question about unemployment insurance and picking up a part time job

[hongkongfever]

So I recently got laid off from a full time position and filed for unemployment. I'm getting the maximum of $450 a week under California's unemployment law. I may be offered another position that is only a few hours a week. I guess my question is if anyone knows how this would affect my unemployment insurance if I take the offer?

I'm trying to contact the unemployment insurance office directly but it's very difficult to get through to someone. And I may need to give an answer soon regarding the job.

I wouldn't mind working that part time job IF what I get from unemployment plus the wages would still roughly equal $450 a week AND it would prolong my unemployment benefits.

Any feedbacks would be appreciated. Thanks.

 

[OCGuy]

Once you are employed, the UI stops or can be reduced based on how much you are making.

You have to fill in any money you have made through other sources when you send off your claim each time.

My guess is that you would lose your UI with a true part time job.

 

[swanysto]

I don't know about California laws, but if you have even a part time job, you are not eligible for unemployment. There are other ways you can pro-long your unemployment. Once your time is up, you can fill out a form to get an extension for like 8 months I think it is. My mom had a small part time job just to get outta the house for a while. Then the place closed down. She ended up making almost what she made in wages from unemployment. Her income was really just money my parents just threw into their retirement fund as extra money, but now they get it and she just cleans and does house stuff all day.

If I were you, I would wait till you can find a job that will support your life.

 

[hongkongfever]

That would be my biggest concern because this part time job will probably pay me like $150 before tax a week. Definitely would put me in a bad position if I lose my UI because of it.

 

[Evadman]

Each state is different. But in my state, if your unemployment benefits are $450 a week and your PT job makes $200 per week, you would still get $250 a week in unemployment. It does not extend the amount of time you can be on unemployment.

 

[xochi]

Originally posted by: Evadman
Each state is different. But in my state, if your unemployment benefits are $450 a week and your PT job makes $200 per week, you would still get $250 a week in unemployment. It does not extend the amount of time you can be on unemployment.

This is the correct, but in some states they have a different amount they deduct wages from and its a bit higher than the maximum amount you get per week, e.g. $450 + 10%.

whatever you do, report your earnings or you could owe the state some $$$ for fraud.

 

[mcurphy]

I was laid in 2001 from Motorola and collected unemployment through Illinois. I was allowed to work part time and earn up to 50% of my unemployment benefit, and every dollar earned beyond that was deducted.

For example, my benefit was $400, and I could earn up to $200 for PT work. I could make $600 for a week.

If I earned $201 from PT work, then my unemplyment check would have been $399.

I think this varies state to state.

 

[InverseOfNeo]

Originally posted by: mcurphy
I was laid in 2001 from Motorola and collected unemployment through Illinois. I was allowed to work part time and earn up to 50% of my unemployment benefit, and every dollar earned beyond that was deducted.

For example, my benefit was $400, and I could earn up to $200 for PT work. I could make $600 for a week.

If I earned $201 from PT work, then my unemplyment check would have been $399.

I think this varies state to state.

NIIIICE! How was he? :laugh:

OP, YHPM in a few moments.

 

[hongkongfever]

Originally posted by: InverseOfNeo

Originally posted by: mcurphy
I was laid in 2001 from Motorola and collected unemployment through Illinois. I was allowed to work part time and earn up to 50% of my unemployment benefit, and every dollar earned beyond that was deducted.

For example, my benefit was $400, and I could earn up to $200 for PT work. I could make $600 for a week.

If I earned $201 from PT work, then my unemplyment check would have been $399.

I think this varies state to state.

NIIIICE! How was he? :laugh:

OP, YHPM in a few moments.

LOL.

 

[BoomerD]

For much of my working life, I dealt with this...

If you're laid off and collecting unemployment, you CAN work part-time and deduct the earnings from your unemployment payments.

Here's the appropriate information:

http://www.edd.ca.gov/Unemploy.../FAQ_-_Eligibility.htm


"How long do UI benefits last?

A claim is effective for one year. During the year claimants can receive from 12-26 weeks of full benefits. The number of weeks varies, based on total earnings during the base period (an individual's earnings during a 12 month period). During periods of high unemployment, additional benefits may be granted by Congress, or the State Legislature."

(there is currently a 20 week extension available)

http://www.edd.ca.gov/Unemploy..._Duration_Benefits.htm


"Who can apply for UI benefits?

Individuals who are currently unemployed or working part-time can apply for UI benefits (you cannot apply for benefits in anticipation of your last day of work)."


http://www.edd.ca.gov/pdf_pub_ctr/de1275a.pdf

"Weekly Benefit Amount: This is the amount of your weekly
benefi t. It is the amount you will receive each week if you meet all
eligibility requirements. If you work part-time and earn more than
$25, but less than $100 in a week, your weekly benefi t amount
will be reduced by your earnings that are over $25. In that case,
the portion of the weekly benefi t amount that you do not receive
remains in your claim for future use until your benefi t year ends
(see Item 6 for more information). If your weekly earnings are $101
or more, the fi rst 25% does not count. The amount of earnings
remaining is subtracted from your weekly benefi t amount and you
are paid the difference, if any."


Working part time does NOT extend your number of weeks...you just receive fewer dollars from UI during the weeks you work part-time.

 

[hongkongfever]

So $150/week from this job means EDD will deduct $112.50 from my weekly benefits netting me $38.50 extra for 7 hours of work. That's so lame. I think I'll turn this job down then.

 

[BoomerD]

Originally posted by: hongkongfever
So $150/week from this job means EDD will deduct $112.50 from my weekly benefits netting me $38.50 extra for 7 hours of work. That's so lame. I think I'll turn this job down then.

heh-heh...what did you expect? Free money?

For me, if I worked more than 2 days/week, I didn't get any unemployment at all after deductions, but during the winter when we were rained out for a week at a time...it came in handy, and if I worked a day here and there...I didn't lose my unemployment benefits.

 

[BoomerD]

WTF? double post fail...

 

[oiprocs]

You lucky ass. I think I'm gonna get maybe 600 a MONTH from UI.

 

[hongkongfever]

Originally posted by: hongkongfever
So $150/week from this job means EDD will deduct $112.50 from my weekly benefits netting me $38.50 extra for 7 hours of work. That's so lame. I think I'll turn this job down then.

Free money is always great but there's no motivation to work unless it's full time if they deduct that huge chunk from your benefits.

 

[BoomerD]

Originally posted by: scorpious
You lucky ass. I think I'm gonna get maybe 600 a MONTH from UI.

Since it's based solely on your previous earnings...you must not have made very much. How did you ever get into ATOT where everyone makes in the high 6-figures?

 

[Homerboy]

Originally posted by: hongkongfever
So $150/week from this job means EDD will deduct $112.50 from my weekly benefits netting me $38.50 extra for 7 hours of work. That's so lame. I think I'll turn this job down then.

and that would be illegal.

That being said, 1099 is your friend.

 

[BoomerD]

Originally posted by: Homerboy

Originally posted by: hongkongfever
So $150/week from this job means EDD will deduct $112.50 from my weekly benefits netting me $38.50 extra for 7 hours of work. That's so lame. I think I'll turn this job down then.

and that would be illegal.

That being said, 1099 is your friend.

Not necessarily illegal. I don't think you're REQUIRED to take a part-time job if offered.

being a 1099 employee doesn't save you from having to report the income.

 

[oiprocs]

Originally posted by: BoomerD

Originally posted by: scorpious
You lucky ass. I think I'm gonna get maybe 600 a MONTH from UI.

Since it's based solely on your previous earnings...you must not have made very much. How did you ever get into ATOT where everyone makes in the high 6-figures?

I bribed a lifer.

 

[hongkongfever]

Originally posted by: Homerboy

Originally posted by: hongkongfever
So $150/week from this job means EDD will deduct $112.50 from my weekly benefits netting me $38.50 extra for 7 hours of work. That's so lame. I think I'll turn this job down then.

and that would be illegal.

That being said, 1099 is your friend.

Illegal would be the minuscule net income I'd get for putting in that many hours as opposed to not accepting the job. But I indeed may end up taking the offer after some thought solely for the opportunity to build new relations and connections.

P.S. Elaborate on this 1099?

 

[BoomerD]

Originally posted by: hongkongfever

Originally posted by: Homerboy

Originally posted by: hongkongfever
So $150/week from this job means EDD will deduct $112.50 from my weekly benefits netting me $38.50 extra for 7 hours of work. That's so lame. I think I'll turn this job down then.

and that would be illegal.

That being said, 1099 is your friend.

Illegal would be the minuscule net income I'd get for putting in that many hours as opposed to not accepting the job. But I indeed may end up taking the offer after some thought solely for the opportunity to build new relations and connections.

P.S. Elaborate on this 1099?

Nothing illegal about that. You'd be getting paid at whatever (presumably) legal wage rate the company offered you. The unemployment benefit would be reduced is all.

1099 is independant contractor...no payroll taxes withheld, BUT, under Kahleeforneeya law, the employer must notify EDD within 20 days of either making payments totaling $600 or more...or entering a contract worth $600 or more.

At $150/week, you'd be in deep shit in about 6 weeks...With the budget problems here in Kahleeforneeya, the state has been pretty aggressive in pursuing fraud cases.
Even if you settled it without prosecution, the interest and penalties add up VERY fast...

 

[JulesMaximus]

$475 is the maximum weekly unemployment. I know, I was on it for a couple months this summer.

I wouldn't bother with part-time or jobs that pay less than what you're making on UI. Just focus on finding work in your field at this point.

 

[hongkongfever]

Thanks all for input.

One last question, if I keep opting to not pay federal tax, will it come back to bite me in the ass in february?

 

[BoomerD]

Originally posted by: hongkongfever
Thanks all for input.

One last question, if I keep opting to not pay federal tax, will it come back to bite me in the ass in february?

Too many variables to answer that question accurately, but you WILL be taxed on the total amount received.

If you only collect a few weeks, no big deal, but if you collect for 6 months and don't have very much already withheld from previous employment...then yes, it COULD bite you pretty hard.

Your tax status, total income, total withholding, exemptions, allowable deductions, etc. all factor into the final numbers.

 

[Paperdoc]

The key here is that every state has its own rules and you need to know yours. Go to the UI system's web page. It should explain clearly how they treat part-time income, how they reduce your weekly benefits and when they decide that you have so much additional income that you don't get any UI money. It should also explain the length of benefits matter. Don't wait to get lucky and reach a person on the phone, unless you have the time and patience to sit on hold for an hour or three until that happens.