Can I file for EDD benefits after consulting work with no recent full-time job?
I'm in a really tough spot financially and wondering if EDD can help. I was laid off from my marketing position back in 2021 and collected unemployment then. After that ended, I've been doing freelance consulting work on and off for different companies, but the gigs have completely dried up over the last 2 months. My income has dropped to almost nothing (maybe $450 last month total), and I'm getting desperate. The problem is that my last W-2 employment was over 3 years ago - everything since has been 1099 work. Can I even qualify for a new EDD claim when I haven't had a traditional employer recently? Do they count self-employment/consulting work for a new claim? My base period would only show independent contractor income. I've tried looking through the EDD website but couldn't find clear answers for people transitioning from self-employment back to unemployment. Thanks for any insight!
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James Maki
EDD determines eligibility based on your base period wages, which is typically the first 4 of the last 5 completed calendar quarters before you file. For your situation, you need W-2 wages in your base period to qualify for regular UI. Unfortunately, 1099 income generally doesn't count toward regular unemployment benefits. You might want to check if you reported your self-employment income correctly to EDD through their quarterly reporting system. Some independent contractors don't realize they need to do this, which can affect benefit eligibility.
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Kayla Morgan
•Thanks for explaining. So it sounds like I probably don't qualify since all my recent income has been 1099? I've been filing my taxes properly but didn't know about any quarterly EDD reporting for self-employment. Is that different from just paying my estimated taxes to the IRS?
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Jasmine Hancock
im in the same boat!! was doing doordash for like 8 months after my regular job ended and now cant get anything. they told me no when i applied last month :
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Cole Roush
•The rules for gig workers and self-employed people are frustrating. During the pandemic, the PUA program covered self-employed workers, but that ended long ago. Now we're back to the standard system where you need W-2 wages in your base period. It's a major gap in the safety net for the growing number of freelancers and independent contractors.
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Scarlett Forster
YOU NEED TO CHECK IF YOU PAID INTO THE SYSTEM!!! If you didn't pay STATE DISABILITY INSURANCE (SDI) taxes on your self-employment income, you're probably not eligible. This is why I kept a part-time W-2 job along with my consulting. The system is COMPLETELY RIGGED against self-employed people!!! They take our tax money but give us NO BENEFITS when we need them!
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Arnav Bengali
•This isn't completely accurate. SDI (State Disability Insurance) is different from UI (Unemployment Insurance). They're separate programs with different funding mechanisms and eligibility requirements. For UI eligibility, you need W-2 wages in your base period where an employer paid into the unemployment insurance fund on your behalf. Self-employed individuals typically don't pay into the UI system, which is why they don't qualify for regular unemployment benefits. Optional SDI coverage is available for self-employed individuals in California through Elective Coverage, but that's for disability benefits, not unemployment benefits.
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Sayid Hassan
have you tried calling edd to ask about your situation? maybe theres some special exception or something for people who had claims before?
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Kayla Morgan
•I've tried calling EDD multiple times but can't get through. Always get the message about too many callers and to try again later. It's so frustrating when you really need answers!
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Rachel Tao
I was in a similar situation last year with consulting work drying up. After failing to get through to EDD for days, I used a service called Claimyr (claimyr.com) that got me connected to an EDD agent within about 20 minutes. They have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km The agent confirmed what others are saying here - I needed W-2 wages in my base period to qualify for a new claim. But at least I got a definitive answer instead of stressing about it for weeks. They also explained some other resources I might qualify for when UI wasn't an option.
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Jasmine Hancock
•does that actually work? i heard about it but seemed kinda sketchy
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Rachel Tao
•It worked for me! Not sketchy at all - they just help you get through the phone system. The agent I spoke with was a regular EDD employee who was super helpful once I got connected.
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Arnav Bengali
To directly answer your question: No, you likely won't qualify for a new UI claim without W-2 wages in your base period. Here are some alternatives to consider: 1. Look into CalFresh (food assistance) and CalWORKs if you have children 2. Check with your county's General Assistance/Relief program 3. Research if you qualify for the California Earned Income Tax Credit when you file taxes 4. Contact your local America's Job Center for employment assistance and potential training opportunities: https://www.edd.ca.gov/office_locator/ If you do find W-2 employment again, even part-time, you could potentially qualify for UI in the future if that employment ends. Just make sure you work enough quarters to establish a valid claim.
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Kayla Morgan
•Thank you so much for these alternatives! I'll definitely look into CalFresh and the job center. I appreciate the clear explanation - at least now I know where I stand with EDD and can focus on other options instead of waiting for unemployment that won't come.
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Cole Roush
One additional point that hasn't been mentioned: if you incorporated your consulting business and paid yourself as a W-2 employee through that corporation (rather than just taking owner draws or 1099 income), that W-2 income could potentially qualify you for UI benefits. It's a common strategy some self-employed professionals use specifically to maintain UI eligibility. Obviously too late for your current situation, but something to consider for the future.
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James Maki
•This is an excellent point and often overlooked. S-corps can provide this benefit, though you'd need to pay yourself a reasonable salary through payroll (with all applicable taxes) rather than just taking distributions. It's more administrative overhead but provides better protections for situations exactly like this.
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Sayid Hassan
my cousin got denied for regular unemployment but got approved for disability when he had a back injury. maybe you could apply for that instead?
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Arnav Bengali
•This isn't appropriate advice. Disability Insurance (DI) is for people who cannot work due to a medical condition, injury, or pregnancy. It's not an alternative to unemployment when you're able to work but can't find employment. Filing for disability benefits when you're not disabled is fraud and could result in penalties.
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